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This is a repost of Steve Faktor’s original Forbes article
My business is helping companies speed up innovation – often by partnering with tech startups. A wilder ride compared to my days leading innovation at Fortune 100 companies. But lately, I’ve experienced enough déjà vu to get a platinum medical marijuana card. Maybe you’ve heard of “multiple discovery”. The theory says that similar inventions happen simultaneously because of converging technologies and common problems. Among mobile payments and loyalty startups, easy money is fueling what I call “marginal discovery” – slight variations on similar ideas. For every truly outstanding startup, five or six have a faulty premise, fail to solve a problem, or choose “cool” over simple. To protect the innocent, I’ve turned my list of frustrations into a set of “rules” to help budding entrepreneurs and experienced executives steer clear of the weed dispensary…
Why am I writing about Twitter at midnight? Even Ashton Kutcher is icing his iThumb at this hour. I’m chasing a brainstorm for my keynote at New Media Expo/Blogworld on Sunday. My talk is about the future of social currencies and the new economics of work. Since launching several successful loyalty services at MasterCard and American Express, I’ve been obsessed with deconstructing what motivates us. That’s why social media and gamification are so amusing to me. They’re a shiny new set of controls that can change – or exploit human behavior. But before drunkenly commandeering The USS Twitter, it’s best to first meet its passengers. Like my 15 Faces of Facebook article last year, here is a deconstruction of Twitter – what it is, who uses it, and what motivates them. In future articles, I’ll go deeper into tools to change both customer and employee behavior.
Registered users will get the detailed infographic here (to be posted on 1/11)
This is a repost of Steve Faktor’s original Forbes article
I’ll be first to admit that I’m a reforming “innovation” trollop. I’ve thrown the word around too lightly, at any old sailor. I need a hot shower and a Brillo pad… What’s so bad about “innovation”? It doesn’t mean much…and maybe never did. Today, we use it to describe an iPhone newsreader app and the reinvention of space travel by SpaceX. That’s more range than Meryl Streep. My business is about creating great products and services, so I look for great tech partners. Some are startups led by brilliant entrepreneurs, bursting with optimism and 5-Hour Energy. As they describe their app, game, or web service, their words scream Johnny Depp, but the reality is a bit more Judah Friedlander. No shame in that, but I sometimes wonder how we could get these brilliant minds to work on meatier problems. My concern isn’t for them, but for us. The US needs jobs and as I wrote in Econovation, the big numbers still come from physical, capital-intensive businesses. Here are three ways we can help make brilliant minds deliver bigger results.
This is a repost of Steve Faktor’s original article on Forbes
To many men, shopping for clothes is like doing your own brain surgery – you’re in no condition to know when you’ve screwed up. Sure, single men must dress up to attract mates. Those poor, unsuspecting women have no clue what fashion nightmares await them. Marriage does to men’s fashion what irritable bowels do to romance. Things get even worse at work. The more casual the office, the more likely we are to see mangled toes and bloated bellies. Even billionaires wear outfits that scream “I sleep in a box.” Of course, it’s the rest of us who need to keep trying. Unfortunately, men’s clothing stores have failed miserably. The shopping experience is hardly painless, especially at department stores. They have the most resources, space, and selection, but they’re packed with men wandering aimlessly like an exiled Judaic tribe.
When I was at MasterCard, I led a project called Total Shopping Solution. Eventually, we commercialized it as two very successful services, Commerce Intelligence and Commerce Coalition. Over the years, I’ve thought a lot about intra-store shopping experiences, especially during all those wasted hours looking for clothes to fit my beefy frame. With today’s technology and some low-tech ingenuity, department stores can reinvent the men’s shopping experience. (After reading this article, I hope they’ll also reimburse me for the the years I’ve lost trying on ill-fitting pants.)
This is a repost of Steve Faktor’s original article on Forbes
Writing “HP is in trouble” is like a newscast starting with “Trouble in the Middle East today…” A sad cliché. Lucky for HP, no one dies… But no one truly lives, either. The company just laid off 29,000 people, its stock dropped 50% in a year, and yet another turnaround is brewing. I do admire Meg Whitman for taking this on. She could easily have kicked back in Florida with a Honey Boo Boo marathon. Instead, her strategy announcement got the kind of reception typically reserved for Syrian dictators. That got me wondering – can a stagnating behemoth ever live again? Could HP lead the 3D Printing revolution?
Just because I’m an “innovation guy”, doesn’t mean that I can: 1) wear red underwear over blue tights like Superman or 2) try to reinvent everything. The art of innovation is also knowing when and how to use what already exists. I was recently advising a startup founder with a grand vision for a new kind of tech education for corporate employees. I agreed that he was onto something…but he was trying to slice strawberries with a chainsaw. (I prefer an axe.) His efforts were stalling as he wooed major players in the category for support. Having worked with lots of large companies, I know getting one company to buy in can be slower than tweezing Alec Baldwin smooth; getting multiples is like re-implanting each follicle. So this entrepreneur was stuck with a big idea that might take forever to coordinate and millions to build. He also lacked a clear plan for getting customers…whose demand for the product was far from guaranteed. Yes, he had it all. There was a better way – and it meant thinking small.
Here are a few things I suggested to him (at least the ones I can share):
Yesterday, I had the displeasure of meeting someone at Pret-a-Manger, a thriving chain featuring something resembling food – from the 1950′s. I live in New York, which offers an astounding number of food options from McDonald’s to fresh bagels to pizza to Mexican. So I was shocked that this Frankenrestaurant was not a laundromat or a hospice by now. As I negotiated peace with my furious stomach, I came to some surprising conclusions about local marketing…and life.
So what’s my problem with Pret-a-Manger? The food isn’t even remotely fresh. They don’t even try to fake a culinary orgasm. Let’s start by introducing you to their chef: the refrigerator. I call him Fridgy. Fridgy makes every sandwich cold, pre-packaged and hours (months?) in advance from some undisclosed military installation. Prisons…and 7/11…have fresher-looking food. Have you ever bitten into a cold baguette? I hope you have amazing dental work. All the flavors blend into one meta-flavor – cold. The only thing left is texture – hard…soft…mushy…and, ouch!
This is an abridged version of the original article I wrote for Business Insider.
In a forgotten corner of the White House sits a huge, Parthenon-shaped cake. Nearby, Ben Bernanke and Timothy Geithner are dancing like Zorba and dripping with hummus. Why all the glee? It’s because Europe just gave the U.S. an amazing gift – the gift of greater incompetence. I call this glitch in time ‘America’s Last Stimulus’. It may be our last chance to stimulate growth, kick-start our export engine, and make sure every European gets a big, wet kiss at the airport.
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Having led innovation at Amex, MasterCard and Citi, I know where the bodies are buried. I also know that payment wars aren’t just about fees anymore. That’s so 1990′s. Years ago, when Walmart threatened to enter payments and banking, incumbents nearly soiled their Hanes. After a little sword-fighting, providers slashed their margins so thin, big merchants had no incentive to do their own thing. This time it’s different. Payments companies are not the real threat.
Today’s war is about data and its power to shift loyalties. In the arms race to probe customers’ deepest, darkest desires, card companies and merchants find themselves bringing spitballs to a gunfight. So, I’m not surprised to see Walmart, Target and others are starting their own 99% movement. Big retailers are launching their own mobile payments system. This is the first of many moves you can expect by merchants to liberate themselves of increasingly omnipotent middlemen. Below are three reasons retailers’ strategy makes sense
Just got this confidentially from a friend working on this project for the US Post Office… Unreal!
Original Email (names were changed/omitted):
—– Forwarded Message —–
From: omitted
To: omitted
Sent: Wednesday, Jan 15, 2012 4:54 PM
Subject: Proposal: New Post Office Business Model – Go Postal!
To: omitted
Sent: Wednesday, Jan 15, 2012 4:54 PM
Subject: Proposal: New Post Office Business Model – Go Postal!
Hi Dave,
To follow up on Tuesday’s meeting, below is the summary for the “Go Postal” proposal. I think the team did a good job. (Though I think they used the old template.)
This would be quite a shift from what USPS does today and potentially controversial. Would require retraining and capital investment to upgrade the pilot locations. Good news is Andrea spoke with both Legal and Facilities – both say it can be done. Please let me know your thoughts.
(name omitted)
As I baked muffins to celebrate Facebook’s IPO, it occurred to me that there’s one HUGE, unspoken difference between the data people reveal to Facebook and what Google collects through search and other tools. It’s this: Facebook knows the image you want to project to the world – your “social resume”. Beautiful vacation photos; that perfect profile photo you Photoshopped so much that your nose is part puma, part Joan Rivers; and those photos of you surrounded by hot girls that lets the world (and Facebook) know that your party never stops.
Well, Google knows your dark, ugly, dirty truths. Your transcribed Google Voice messages reveal you argued nonstop on that island vacation as your kids yelled, “I hate you!” in the background. Your search history shows all your liposuction research, as your Photoshop bills skyrocket. Several of your eHarmony dates have jumped through glass storefronts to escape your shocking, incongruous looks. Google also knows where you’ve been – HOME!!! 
Your Android phone tattles like a four year old bribed with brownies. It reports your every move and it knows you’ve barely moved. You haven’t been invited to a hot party since October ’09, when you made your one friend wait two hours as you caked on makeup, trying to look your very beast…I mean ‘best’, before leaving the house.
What I’m saying is – you have two lives. The pretty, inauthentic one you construct on Facebook and the one where Mistress Sally from Craigslist walks on your face with stilettos wrapped in bacon. (Don’t ask…I just write whatever my imagination conjures.) Point is, that disparity creates a very different value proposition for the two companies. As Google mines your dark side, Facebook scrapes away at your veneer to get to it.
RIM’s stock is down 13% since yesterday, when the company promoted a company insider to CEO. In a well-run company, that’s called “succession”. In a struggling company bleeding share, it’s called “delusion”. To add to to the insanity, the co-CEO’s loom in highly visible roles including the ironic “Head of the Innovation Committee”. The market is doing the best it can to break RIM out of its delusion. Many have written about the new CEO saying wacky things like “If we continue doing well what we’re doing, I see no problems …”. What I haven’t seen written about is the psychology behind the seemingly-bizarre actions of the company’s leaders. I attribute it to “Reality Distortion Field Failure”. Or RDFF, for you acronym-lovers.
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