Until recently, short term economic growth was about doing more of the same. Now, in the innovation economy, it is about doing new things instead. Growth used to be about optimizing silos, now it is about challenging them. In today's innovation economy, there is a challenge: POWER IS VERTICAL but POTENTIAL IS HORIZONTAL. This slide show presents an idea of how to boost innovation drive growth by applying a new, straight and very simple mindset.

1. © David Nordfors
HORIZONTALISM
IMPROVING INNOVATION SYSTEMS
BY IMPROVING COMMUNICATION
David Nordfors, CEO, IIIJ
Menlo Park, CA, USA
Monday, September 2, 13

2. © David Nordfors
Power isVERTICAL, but...
AN INNOVATION ECONOMY DILEMMA
Monday, September 2, 13

3. © David Nordfors
...potential is HORIZONTAL
Monday, September 2, 13

4. © David Nordfors
If the NEXT thing is what keeps the customer,
INNOVATION is the CORE business
LIFE CYCLES ARE SHORTENING
Then : “Get a new one when the old one breaks.”
Now : “Get rid of it when it’s dated.”
Monday, September 2, 13

5. © David Nordfors 2011
ECONOMIC
GROWTH - THEN
• WAS about doing MORE OF THE SAME
• Players knew who they were and what to do.
• Must fit the norm of players doing the same
things.
• VERTICAL COMMUNICATION is key.
• Shoemakers discuss how to make shoes with
other shoemakers.
Monday, September 2, 13

6. © David Nordfors 2011
VERTICAL GROWTH
• A race for MORE OF THE SAME
• IMPROVE the SILOS
• PEOPLE DOING THE SAME THINGS MEET.
• SECTORS, GUILDS, BEST PRACTICES
• “DON’T CROSS THE LINE!”
• REGULATION is POWER.
Monday, September 2, 13

7. © David Nordfors 2011
VERTICAL LANGUAGE
STRENGTHENING SILOS
IMPROVING OLD PRACTICES
• Represents;
• Expertise, Best Practice, Peer Review
• “NEED TO KNOW” language spread by
• Courses, Certificates, Committees
• VERSATILE, EXACT,ACCURATE, enabling
VERTICAL COMMUNICATION
Monday, September 2, 13

8. © David Nordfors 2011
ECONOMIC
GROWTH - NOW
• IS about doing NEW THINGS
• Players must RENEW themselves.
• Must match players doing OTHER things who
ALSO are renewing themselves.
• HORIZONTAL COMMUNICATION is key
• Shoemakers discuss how to make shoes with
users, physicians, chemical industry, etc...
Monday, September 2, 13

9. © David Nordfors 2011
HORIZONTAL GROWTH
• A race for THE NEXT BIG THING
• CHALLENGE SILOS
• PEOPLE DOING DIFFERENT THINGS MEET.
• CLUSTERS, NETWORKS,VENTURES
• ‘TRY SOMETHING NEW!’
• INNOVATION is POWER.
Monday, September 2, 13

10. © David Nordfors 2011
HORIZONTAL LANGUAGE
INNOVATION ECOSYSTEMS
SHAPING NEW PRACTICES
• Represents:
• Interaction across expertise, general knowledge
• “WANT TO KNOW” language spread by
• Storytelling, public discussion, media
• SIMPLE, ENGAGING, RELEVANT, enabling
HORIZONTAL INTERACTION
Monday, September 2, 13

11. © David Nordfors 2011
INNOVATION MEANS
NEW LANGUAGE
• Every Innovation Needs
• A name - so we can refer to it
• A definition - so we know what it is
• A story - so we can relate to it
• Innovation = New Shared Language
Monday, September 2, 13

12. © David Nordfors
WE CAN NOT
INNOVATE FASTER
THAN WE CAN CREATE
NEW SHARED
LANGUAGE
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13. © David Nordfors
SHARED LANGUAGE
BUSINESS EDUCATION
GOVERNMENT
$
$
$Ω
Ω
Ω
§
§
Ω§§$
Monday, September 2, 13

14. © David Nordfors 2011
INNOVATION IS NEW
SHARED LANGUAGE
• INNOVATION IS NEW SHARED LANGUAGE FOR
• TEAMS doing news things together
• STAKEHOLDERS joining forces in new ways
• MARKETS trading innovation
• SOCIETIES building new quality of life
Monday, September 2, 13

15. © David Nordfors 2011
THE INNOVATION
COMMUNICATION
SYSTEM
• What is the INFRASTRUCTURE for creating
new shared language?
• in the team?
• among stakeholders?
• in the market?
• in society?
Monday, September 2, 13

16. © David Nordfors
INFRASTRUCTURE
FOR CREATING NEW
SHARED LANGUAGE:
THE INNOVATION
COMMUNICATION
SYSTEM
(ICS)
Monday, September 2, 13

17. © David Nordfors 2011
INNOVATION
PARADIGMS
• -90s: HARD: Science & Technology
• 90s-10s: HYBRID: Products & Services
• 10s-: SOFT: Brands & Narratives?
Monday, September 2, 13

18. © David Nordfors
CONTACT
IIIJ
c/o SRI International, 333 Ravenswood Ave
Menlo Park, CA, USA
david@iiij.org
Monday, September 2, 13