“…what makes no sense in the wind shield, makes good sense in the rear view mirror…” Randy Komisar Or how vision, innovation & inevitable failure can lead to new great things…

1. vision, innovation & inevitable failure

2. Groundwood pulp mill
Nokia (1865)

3. “Very human
technology helping
people feel close”
(1865) Nokia (2010)

4. Minnesota Mining &
Manufacturing
3M (1902)

5. ‘Practical and
ingenious solutions
that help customers
succeed’
(1902) 3M (2011)

6. What enabled companies like Nokia
and 3M to radically
change their
companies?

7. 1. Vision

8. Vision is about looking ahead

9. Looking ahead is about perspective

10. Perspective is about the way
things appear to you

11. you

12. Your Vision: ignore the customer!

13. Vision
Look ahead &
place in perspective
how things appear to you.
Ignore what customers say

14. Example: Nvidia

15. Visual computing
technologies
Nvidia (1993)
Perspective:
”3D graphics is insatiable”

16. Nvidia
Perspective:
”3D graphics is insatiable”
Vision:
Favoring Moore's law
over customer feedback

17. Nvidia GeForce-cards
first PC graphics chip with hardware
transform, lighting, and shading
Although 3D games utilizing this
feature did not appear until a lot later.

18. Nvidia Riva TNT
first programmable graphics card
Only became hugely popular after the
introduction of new drivers.

19. 2. Innovation

20. Example: 3M

21. 3M started in 1902 as a
mining company for grinding-wheel
abrasives (bought the wrong mine for
the mineral), switched to sandpaper
but only started making big money by
accidentally developing masking tape

22. “Delegate responsibility
and encourage men and women to
exercise their
initiative”
15% rule William McKnight
CEO 3M

23. Example: Google
20% rule

24. Google’s mission ‘Organize the world‘s
information and make it universally
accessible and useful’
20% rule

25. Search, Maps, Gmail, Calendar…
‘Organize the world‘s
information and make it universally
accessible and useful’
20% rule

26. Search, Maps, Gmail, Calendar…
‘Organize the world‘s
information and make it universally
accessible and useful’
50% of what Google launched came
out of 20% of their time in 2005

27. Employees devote
70% of time to core business tasks
20% of time to
tasks related to core
10% of time to unrelated tasks

28. Innovation comes out of
20% of time to
tasks related to core
10% of time to unrelated tasks

29. Innovation
requires a bit of experimentation
Experimentation
requires a bit of exploration
Exploration
will result in failure!

30. So unless you have a
tolerance for failure
you will never experiment;

31. And if you never experiment
you never innovate!

32. “But failure
is a risk!”

33. 3. failure

34. Spencer Silver “If I had thought about
3M post-it inventor it, I wouldn’t have
done the experiment.
The literature was full
of examples that said
you can’t do this.”

36. "I thought Helmholtz
A. G. Bell had done it and that
on misinterpreting my failure was due
Helmholtz and his
subsequent
only to my ignorance
discovery of the of electricity. It was a
telephone very valuable blunder.
It gave me confidence.

37. Success is 99% failure!
You need to maintain
your confidence to
recognise the 1% that
makes a difference

38. Build a culture for constructive failure

39. Constructive failure =
1. Cash in on failure as an asset:
Fail quickly and inexpensively!
Have a business model that copes
with failure!

40. Constructive failure =
2. Teach people how to fail:
Failure forces stripping away of the
inessential
“Rock bottom can be a solid
foundation”

41. Fail early to succeed soon!

42. Example: 3M

43. 3M started in 1902 as a
mining company for grinding-wheel
abrasives (bought the wrong mine for
the mineral) , switched to sandpaper
but only started making big money by
accidentally developing masking tape

44. To fail succesfully you need Imagination

45. Test your imagination: Draw a pig.
(right now!)

46. What happened?
Did you wonder how to draw?
Did you ask what a pig looks like?
Adults discuss the pig,
kids just start drawing!

47. 4. imagination

48. So:
Don’t waste time seeking support
Don’t sit around & talk about the
problem

49. Build a gallery of failures:
Understand what
works and what
doesn’t.
“Imagine the possible”

50. prototype
test
prototype
test

51. prototype
test
prototype
test

52. Example: Google’s tolerance for failure
Gmail was a Hotmail copycat thought
to make money from paid storage.
By experiment they discovered the
value of advertising next to content.

53. Advertising became core business
2007: $ 16 billion
2008: $ 21 billion
2009: $ 23 billion in Ad revenues
but Gmail remained in beta for years...

54. …and use some imagination

55. 2010: Google Robot-car?
Create a vision, ‘Autonomous
choose a transportation could
perspective, try be larger than the
to fail quickly & search business.’
‘It's an extremely long shot for Google, but the
Inexpensively … investment is modest, it leverages existing core
initiatives -- Google Maps -- and does support the
"geeky" aspect of their brand today.’

56. “…what makes no
sense in the wind
shield, makes good
sense in the rear view
mirror…” Randy Komisar

57. …or how
vision, innovation & inevitable failure
will lead to new great things…

58. Onno Makor
Great Little Company
onno@GreatLittleCompany.com
www.GreatLittleCompany.com