3 Phases in Innovation
There are 3 phases in innovation.
The first is the process innovation. It is a typical example that Ford Model T was distributed at cheap price through mass production, using the conveyor belt-based assembly. They brought about innovation in the manufacturing process and distributed cars in the price range that customers could afford to buy and surpassed the other companies.
What comes next is the product innovation. For instance, the Sony Walkman became a huge hit as it transformed music players which normally used to be immobile into a portable form. As opposed to the case of Ford Model T, basically manufacturing of the same products as the other companies, product innovation is to give big innovation to the product itself.
And what has been getting a great deal of attention now is the business model innovation. In the case of iPod, when it first came out, it remained in the product innovation phase for its ease of use due to the Click Wheel.
However, by adding the iTunes store to it, they were able to provide smooth music experiences through buying music with one click. The convenience of being able to buy just one song gained strong supports from its users.
What is excellent about this business model is that once you buy one, it would be hard to switch to other companies; in other words, it functioned as the so-called switching cost. After that, no matter how high-quality music players Sony sells, users were forced to continue to use their iPods.
In a situation where the market is saturated and consumers already own products as now, simply creating new products is not enough. Creating a new business model that brings about unprecedented experiences is demanded.
The Balance between the Left Brain and the Right Brain to Make a Harmony
――I think you have such a logical way of thinking, Mr. Koyama. I feel that right amount of 'right-brained' approaches are applied accordingly. Are you originally a left-brain thinker but have acquired the creativity of the right brain?
I think you are. You are a left-brain thinker but acquired the right-brain part. However, I do not think there are left-brain dominant children; more of the limbic system rather than a high level of right-brain dominance. So, there is something instinctive rather than being left-brained, and as we grow up, the cerebral cortex, the part responsible for abstract thinking, develops and can be used. Words can then be formed and calculation is can be done. The distinctive differences between the right and the left brains will then show. I feel this is the way it works.
Creating a hit product or launching a new business cannot be done solely by the left brain. You need artistic thinking (right-brain) to create something unprecedented.
Science fundamentally seeks reproducibility and it always refers to the past whereas there is no point in artistic thinking if what has been done in the past is done for the second time. Art is a way of thinking to always create something new. The vectors actually point to the opposite directions. In this sense, scientific thinking that refers to the past and artistic thinking that creates what has not happened are needed at the same time.
In this sense, for instance in a nuclear accident, I think if people with artistic thinking think about it, they would make an assumption that accidents could happen or they would act differently in such situations. People with scientific backgrounds would not give up on the assumption that "it is impossible to happen."
――Can we say that the canvas of the business model and generation per se is science-oriented?
In terms of "divergence" and "convergence," as the business model canvas is for maintenance, it is a tool for convergence. It is for relating and considering various ideas that come up.
However, the tool itself requires such an artistic sense as it examines the relations of 9 blocks. Namely, it has to look at the harmony. Logical thinking does not look at the harmony, does it?
Simply whether or not it is logical. When a person is shown 9 blocks on one page, they look at whether they are balanced or if there is any inconsistency as a whole.
In this sense, in graphic design, balance can be lost simply by changing the size of a font a little. People can notice there is something different in one block right away like this. That means that this is a design tool that requires such a sense of design.
――I think most Japanese often have such a way of thinking. Even when I hear, I feel that I do it subconsciously, but do you think that people from overseas are more logical and that artistic thinking is not so pervasive?
I do not think it is always the case but it seems that attitudes about diversity in the concept of art is a little different. It could be due to monotheism but I have a hypothesis that there are rules for everything and that 'there is the ultimate rule for design.'
However in the case of Japan, I think there is no ultimate rule and there is a method to make harmony. In terms of flower arrangements, there are styles of angles and lengths, sch as the idea of heaven, earth, and man but it does not necessarily mean that you just need to follow it; but how you can make a harmony by using it - is the focus.
Japanese businesses have lost the power of on-site improvisation
--During your work as a consultant, what changes have occurred in your clients? How do you think the change in your clients is changing the world?
One very important thing is the method of improvisation. Up until now clients have followed a pattern of executing plans made beforehand based on previous plans. Currently, extreme changes are taking place and handling issues on-site is becoming very important, so on-site improvisation can greatly influence the development of a business. This could even be called a company's strength.
Originally, even Michael Porter got angry at Japanese companies, saying that they "had no strategy." Some places were built upon on-site improvisations rather than executive decisions handed down from above. However, in recent years this has been lost and must be reclaimed.
--The Japanese people originally had the power of improvisation, didn't they?
Yes. It is a stereotype, but it is said that even if the high-ups are clueless, the people on-site are very competent, so they support the company. However, when on-site personnel lost their authority due to compliance issues and had to submit inquiries for everything, it became hard for them to improvise. The problem is how to reclaim improvisation in the midst of this.
--When I think of improvisation, I imagine a spontaneous theatrical performance; but in what concrete ways is it implemented on-site?
The simplest example of improvisation would be like how a concierge at a hotel handles guests. For example he might get asked something irregular, for example a guest says, "I want ten towels." While thinking "How weird; why does this person need ten towels?" he says, "Let me check," then tells other workers, "That person sure is strange." Somehow or another, the guest will be able to understand what is going on and then feel very uncomfortable and have a harder time asking for things.
However, a concierge in a place with improvisation will first accept saying, "Ten towels? Of course." Without hesitation. After that he will ask why the guest needs ten towels. "Could I ask what you will use the towels for?" Then for example he is told "I just want to use a clean towel every time I after go to the pool," and responds with "I can bring you ten towels right now, or if you prefer I could bring you five today and five tomorrow," presenting a suggestion more desirable to the guest.
First, accept what the other person is saying, no matter what. After that, expand on it and make further observations. This will bring about further developments. Without this sort of improvisation, you won't be able to develop products convenient to the users or provide hospitality.
Writing Books while "Breathing the World"
I am currently in "writing mode", and work in a way that is extremely stoic. I put 25 minutes on a timer, shout "ready, go!", and after all of the minutes are up, count the number of characters I have written. If the results are not very good, I really push myself during the last five minutes. As a result, I write about 1200 words on average.
Although my job is one that is done in solitude, the surrounding environment has an immense effect on my work. When I work in small spaces with no windows, I can only write a few hundred characters, or sometimes none at all. However, if I work in a cafe with big windows, there are times when I can easily write 1500 characters.
Many people think that when I write, I am outputting what is inside my head onto paper.
However, what actually happens is that I catch things that come from the outside with my body, and convert what I catch into words with my brain.
Hence, it is better if I can see the outside scenery as I work. It is better if there is an affluent amount of emotion floating about outside. The ideas I have when I write come from the outside scenery. When I write, I adjust the position of my antenna as if I am installing a satellite disc. People call this inspiration.
There are people who make fun of the "nomad" work style, however, I believe these people have never experienced this process of writing while "breathing the world". There are things that people could never write if they are shut up in an office.
The Private Writing technique for helping to write in quantity
This technique for helping to write in quantity, Private Writing, was introduced in "IDEA HACKS!2.0". The method is to write down everything you think of, leaving nothing out. Its distinction lies in moving your hands and writing rather than thinking.
It is private, so in general you will write without intending to show it to anyone else. Because you don't worry about others seeing it, you can keep writing without stopping yourself.
These are the important rules of Private Writing.
[Important Rules] Don't show your writing to anyone else
(1) Allow for poor writing or trivial thoughts
(2) Don't stop writing
(3) Choose a time for writing
(4) Draw out your true, honest thoughts
(5) Develop your thinking beyond limitations
(6) If you get stuck, try changing your point of view
Like mentioned in the above entry, first choose a time and do your writing during that time. Set aside feelings of wanting people to like your writing, and just scribble down whatever comes to mind.
If you keep this up, eventually you will start smoothly writing text without pondering it over first.
Everyone has had the experience of words coming out smoothly in conversation even though they hadn't prepared beforehand. This is applying that to writing.
A Writing Style of Checking My Pace is like a Marathon
I am working on writing for a new book right now. I have written 10, 000 characters in Japanese in the past 3 days. To make a book, I need 100, 000 characters so if I keep up the pace, it should be done in 30 days.
Blogging is like a sprint and you can write as you feel like and that is it. But when it comes to books, you need to write 150 times more than such blogs. It is like a marathon.
Of course, writing styles are different as well. In sprint, all you need to think about is to run to the goal whereas marathon runners need to think about pacing themselves. They run, grasping their paces every 5 km.
There are something similar in writing books and I use a writing style of checking my pace like a marathon. More specifically, I use a writing method of checking the amount written every 30 minutes.
For my lifehack series, around 1,500 characters/ 30 minutes is the standard. What I am writing now is a little slower at 1,200 characters. Such speeds depend on the difficulty of the content being written. I check to see if I am keeping up with the pace as I write.
For this reason, I set a timer to go off every 25 minutes. If I am behind the space when it goes off, then I try to catch up in the next 5 minutes. I try to write without disturbing my pace like this. The time allocation is just like the Pomodoro technique.
My writing performance in the New Year's is like the above.
| Jan 2 | 17:00 | 17:30 | 1,500 |
| 17:30 | 18:00 | 1,200 | |
| Jan 3 | 21:30 | 22:00 | 1,100 |
| 22:00 | 22:30 | 1,200 | |
| Jan 4 | 11:30 | 12:00 | 1,300 |
| 17:00 | 17:30 | 1,200 | |
| 18:00 | 18:30 | 1,200 | |
| Jan 5 | 0:00 | 0:30 | 1,000 |
| 0:30 | 1:00 | 1,100 | |
| 8:30 | 9:00 | 900 | |
| 11:00 | 11:30 | 900 | |
| 12:00 | 12:30 | 1,200 | |
| 17:20 | 17:50 | 1,100 |
Make Diffusion Models Backed by Technology
In an interview with the Nikkei Newspaper, Professor Christiansen offered the following responses.
——Explain the requirements for Japan's recovery.
"In order for big corporations to create new growth opportunities, they must return to their roots of developing simple products that everyone can buy. It's the same as Sony's development of the walkman, which pioneered a market."
"It is important to measure investment earnings against criteria different from existing business. If corporate management has the flexibility to build departments separate from existing, profitable business, then they can succeed."
"Japan - return to your roots!" - Professor Christiansen: Nihon Keizai Shimbun
Japanese corporations should not pursue high-functional, high-performance products. Instead, they should aim to produce "destructive innovation" — handheld, inexpensive goods that can be widely popularized.
In today's age, it is necessary to add network functions. Products should be equipped with cheap, battery-friendly Bluetooth and be able to connect with smartphones. Ideally, as users increase so does a product's convenience. If businesses can create what is known as network effect, there is nothing else left to say.
If a product functions as a platform, then it enters a different dimension than a product simply sold at a low price. The method of popularizing a devise and then earning from the platform is similar to the Playstation game console. In terms of game consoles, there is nothing for anyone to criticize as "cheap selling" when the consoles are initially sold at a loss.
I think means for survival lie not in developing highly priced products with high added-value, but rather in developing inexpensive network devices.
Importantly, departments cut off from existing business organizations must direct these enterprises. Otherwise, they will cannibalize existing business.
