Book Title: The Silver Lining: An Innovation Playbook for Uncertain Times
Author: Scott Anthony
Review: The first thing that captured my attention in this book is the fluid writing style, infused with numerous examples that provide supportively, brilliance to the analysis and the book as a whole. Scott provides insightful analysis and guiding tools that can support firms to come out stronger from the current tumultuous business environment -"Great Disruption" -, as an analogy of the "Great depression" of the 1930’s.
Since nobody can mention "disruption" without referring to one of Professor Clayton Christensen book "The innovator’s dilemma", Scott starts with describing the disruption mechanisms as related by Christensen; "… Subsequent research and fieldwork have identified more than 200 disruptive developments over the past 50 years across a range of industries. Some disruptions, like retailing (Wal-Mart), low-cost automobiles (Toyota), Steel mini-mills (Nucor), and digital music (Apple), reshape existing markets. Other disruptions, like personal computers, online advertising (Google), and online auctions (eBay), create entirely new markets…"
Chapter 3: Refeature to Cut Cost – When times get tough, innovators have to figure out how to improve the productivity and profitability of existing products, services, and processes.
Companies should follow a three-step process where they:
Chapter 4: Increase Innovation Productivity - excellent chapter, as it helps to identify capabilities, constraints, weaknesses, structures.
Spearhead innovation!
Cisco has created an autonomous growth group, Cisco Systems Emerging Technology Group, which has the mandate of creating stand-alone billion-dollar businesses. One business that came from the group is TelePresence.
Try to do the “Innovation capabilities audit” exercise!
Chapter 5: Master Smart Strategic Experiments – “ Often, the reason that people perceive innovation to be risky and expensive is their failure to couple technical experimentation with strategic experimentation.”
Chapter 7: Learn to Love the Low End –a lesson on how to turn the disruptive threat into an opportunity.
Good Enough Can Be Great!
A very good chapter with a large list of examples of incumbent companies who launched low-end solutions.
Chapter 8: Drive Personal Reinvention – “Leaders face another important challenge beyond improving their own abilities: motivating creative, innovative employees who don’t land an exciting innovation project.”
This chapter describes things firms are not doing yet, but need to get started immediately.
The last chapter 9: What's Next for Innovation - is an epilogue, which highlights ten specific disruptors. Here are some of them:
Conclusion:
I have truly enjoyed reading (am still digesting) the author's playbook.
It’s that kind of books that you have to read all over again and again in order to digest the massive volume of valuable information it contains.
Every manager, leader, executive or innovator should read the book at least once.
--------******--------Since nobody can mention "disruption" without referring to one of Professor Clayton Christensen book "The innovator’s dilemma", Scott starts with describing the disruption mechanisms as related by Christensen; "… Subsequent research and fieldwork have identified more than 200 disruptive developments over the past 50 years across a range of industries. Some disruptions, like retailing (Wal-Mart), low-cost automobiles (Toyota), Steel mini-mills (Nucor), and digital music (Apple), reshape existing markets. Other disruptions, like personal computers, online advertising (Google), and online auctions (eBay), create entirely new markets…"
Chapter 1: The Great Disruption - "…Tough economic times are going to force innovators to do what they should have been doing already... The challenge is reinvention, or transformation... Perpetual transformation is the only way to thrive during the Great Disruption…"
“The book is intended to be a guide for executives and innovators seeking to seize the silver lining in today’s difficult times, for strategists and investors trying to spot industry winners and losers, and for individuals thinking about how to tighten their own belts or reinvent themselves.”
Chapter 2: Prune Prudently – “Which would you shut down? A project with first-year revenues of $220,000 or one project with first-year revenue of $200 million?” The first page of this chapter starts with this astonishing (and challenging) question. And then the answer is even more revealing! "What if you knew that the smaller project (Google) would change the world and the larger project (Vanilla Coke) would be discontinued."
The portfolio checkup is a good tool for determining the health of a firm's innovation/growth portfolio. Companies should stop taking portfolio decisions based only on first-year revenues, Net-Present-Value. A different approach is proposed.
The chapter describes things companies should stop doing.
Chapter 2: Prune Prudently – “Which would you shut down? A project with first-year revenues of $220,000 or one project with first-year revenue of $200 million?” The first page of this chapter starts with this astonishing (and challenging) question. And then the answer is even more revealing! "What if you knew that the smaller project (Google) would change the world and the larger project (Vanilla Coke) would be discontinued."
The portfolio checkup is a good tool for determining the health of a firm's innovation/growth portfolio. Companies should stop taking portfolio decisions based only on first-year revenues, Net-Present-Value. A different approach is proposed.
The chapter describes things companies should stop doing.
Chapter 3: Refeature to Cut Cost – When times get tough, innovators have to figure out how to improve the productivity and profitability of existing products, services, and processes.
Companies should follow a three-step process where they:
- Segment customers using the concept of job-to-be-done.
- Investigate discrete customer segments to determine thresholds and trade-offs.
- Refeature offerings so they are more aligned with customer demand.
Chapter 4: Increase Innovation Productivity - excellent chapter, as it helps to identify capabilities, constraints, weaknesses, structures.
Spearhead innovation!
Cisco has created an autonomous growth group, Cisco Systems Emerging Technology Group, which has the mandate of creating stand-alone billion-dollar businesses. One business that came from the group is TelePresence.
Try to do the “Innovation capabilities audit” exercise!
Chapter 5: Master Smart Strategic Experiments – “ Often, the reason that people perceive innovation to be risky and expensive is their failure to couple technical experimentation with strategic experimentation.”
A good perspective on technical experimentation vs. strategic experimentation.
Chapter 6: Share the Innovation Load - Entrepreneurs don't take risk; they manage risks.
The chapter describes things we need to do differently. Scott refers to Henry Chesbrough Open innovation paradigm.
Chapter 6: Share the Innovation Load - Entrepreneurs don't take risk; they manage risks.
The chapter describes things we need to do differently. Scott refers to Henry Chesbrough Open innovation paradigm.
Chapter 7: Learn to Love the Low End –a lesson on how to turn the disruptive threat into an opportunity.
Good Enough Can Be Great!
A very good chapter with a large list of examples of incumbent companies who launched low-end solutions.
Chapter 8: Drive Personal Reinvention – “Leaders face another important challenge beyond improving their own abilities: motivating creative, innovative employees who don’t land an exciting innovation project.”
This chapter describes things firms are not doing yet, but need to get started immediately.
The last chapter 9: What's Next for Innovation - is an epilogue, which highlights ten specific disruptors. Here are some of them:
- Skype: 2008 revenues: $500 million; 2005-2008, growth rate: 2,116%. Why is it disruptive: simple, affordable, good enough telephone and video-conference.
- Cisco TelePresence: (launched in 2006). Why is it disruptive: realizes the promise of video-conferencing, cheaper and easier to people.
- LinkedIn (estimated 2008 revenues: $100 million). Why is it disruptive: makes it simpler and easier for people to manage professional networks.
- Alibaba.com (2008 revenues: $4000+ million. Why is it disruptive: allows small Asian businesses to reach much wider markets.
Conclusion:
I have truly enjoyed reading (am still digesting) the author's playbook.
It’s that kind of books that you have to read all over again and again in order to digest the massive volume of valuable information it contains.
Every manager, leader, executive or innovator should read the book at least once.
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