Larry Keeley
Co-Founder and President, Doblin Group
Adjunct Professor, Illinois Institute of Technology
One of the most polished and engaging speakers I’ve seen on this or any topic. Larry started by pointing out that Thomas Edison did not invent the lightbulb. He perfected it. It had been invented years previous, but there hadn’t been a suitable filament material discovered. Edison took the time to try thousands (including, apparently, cheese). In a very non-linear sense, he was in fact saving the whales, since the light bulb would replace the lighting in upper-class homes that currently used lamps fuelled by whale oil.
Interesting premises to start his discussion: 1. Sometimes things change, and 2. The future is already here, it’s just not evenly distributed. This second point he illustrated using Helsinki, Finland. It’s one of the darker places in the world. So, as the future of lighting goes, it’s already arrived there. Same with mobile phones and South Korea. Or (arguably) fashion and Milan. Places like this, faced with some collection of attributes and/or allocations of things/conditions/etc, become the early adopters. Helsinki didn’t really invent anything to do with lighting, they just adopted things first. Some balance here of courage, and desire to change since conditions were pretty bad.
This touches on that “Endowment Effect” that I heard about at the office 2.0 conference – we overvalue what we have by 3x and we undervalue new stuff by 3x, so something new needs to seem 10x better than what we have to get adopted. If you don’t have much to overvalue, it sure makes it a lot easier to accept the new stuff as being better.
Keeley also poked some holes in conventional wisdom surrounding Ford – apparently they nearly went bankrupt 5 times before getting off the ground. And then, when GM came in to build cars that catered to individual tastes, Ford shut down for 2 years to restructure around this new competitor.
A big (and I think very important) part of Keeley’s discussion was focused around a single word: Platform. The example was everyone’s favorite, the iPod. It’s a Platform because everyone can build upon it to expand the value of the platform. He later went on to outline a list of what he felt were the best innovations of all time, and all of them were platforms.
#1 on the list was weapons. By chasing new platforms, instead of new products, the value of innovations really increases exponentially. Put differently: how many people will rely on your innovation as a starting point from which they can be innovative themselves? And are you designing it that way? If not, why not? If it’s easier and more profitable for someone to use your innovation as a platform, rather than copy your product, then they’re likely to do exactly that. This isn’t about changing people’s motivations. It’s about swapping the carrot for a larger carrot. This also led to a theory of a new Pareto principle for innovation: that 2% of the projects create 90% of the value. That’s a big shift to traditional thinking, but true, if most value comes from platforms, and if platforms are the more rare type of innovation.
Keeley dug deeper in his talk and identified 10 types of innovation. The types were well structured, but it’s what he said about the collection that I found interesting. He suggested they were like musical notes: you can either be a great composer, and arrange them in a way no one has heard before, or you can be a virtuoso, and play a known song better than anyone. These are the ways to be a distinguished innovator.