The Innovators Studio with Phil McKinney

Wicked problems are problems that are extremely difficult or impossible to solve. The best example of a wicked problem comes from a project I did with the Department of Education.

This project aimed to innovate kindergarten through 12th-grade education in the U.S. We ran a series of workshops in our attempt to transform education. The project turned out to be an extremely frustrating endeavor. Looking back, I realize that this qualified as a wicked problem.

A wicked problem is something that is inconsistent and changes over time. People's opinions on the problem also change over time. The ecosystem of people interested in education, such as policymakers, teachers, unions, and students, have different opinions and think theirs are superior.

A wicked problem also has a sizeable economic burden or risk. If you mess up education, you impact a generation of people and how they compete in the marketplace. Entangled with other problems by nature, wicked problems are complex.

Wicked problems can often be overwhelming due to their size and complexity. The complexity of the problems comes from these entanglements. For example, if you look at the poverty problem, it is linked to education and linked to nutrition.

Each wicked problem has a set of organizations that are trying to solve the problem. Some try to solve poverty, education, nutrition, economic disparity, etc., from their perspective. Each group believes their approach is the right one. This process becomes part of the overall challenge in finding innovative solutions to these wicked problems.

Wicked problems are unique, and everyone frames them differently. Other things that challenge the solving of wicked problems are restraints and limited resources. These can come in the form of laws and contracts and limited finances and time limits.

Wicked problems are never entirely solvable. The education problems today are just different than the issues that existed when I was in school.

There are two keys to success when finding innovative solutions to wicked problems. Firstly, there is multi-disciplinary collaboration. There need to be experts in many different fields involved in these efforts. If you want to solve education, you need parents, nutritionists, economists, educators, etc.

The second key to success in this area is to have perseverance. Wicked problems are never done and require continuous improvement.

There are a few strategies to tackling wicked problems. The first strategy is an authoritative strategy, which gives a group or individual the responsibility of making decisions. This process simplifies the complexity problem, but some perspectives of the problem are left out.

The second strategy is a competitive strategy that puts opposing points of view against each other. This way presents many different solutions but creates a confrontational environment that reduces knowledge sharing.

The third strategy is collaborative, which consists of getting people to discuss and share their knowledge. The con here is that a collaborative approach takes a lot of time. Remember, don't think about solving wicked problems. Instead, seek to find the proper intervention that will improve them and continue that cycle of improvement.

Let's recap the discussion on wicked problems. The first element to innovating wicked problems is to recognize that there is an adaptive vision. It's not about finding a solution but applying that intervention.

The second element is creating an idea-safe environment that brings people together. It is essential to experiment and try new ideas while encouraging social bonding.

The third element is to enable knowledge sharing. People often approach wicked problems with biases that don't help the situation. It's vital to encourage differences and frame them as strengths. One way to do this is to force face-to-face interaction. This type of interaction is the most beneficial for collaboration.

The last element is recognizing that execution is learning. Don't focus on timelines and blueprints when dealing with wicked problems. These things are often changing, so you need to be ready to adapt through each step you take.

Is creative thinking based on a born ability, or can you learn it like any other skill? Is it nature or nurture? There is research that argues both cases, and I believe you can do both. I would say that we are all born highly creative.

Children use problem-solving and their imagination every day. Here's some insight into this creative transition from child to adult. In 1968 George Land tested 1,600 kids to analyze their creative transformation. He focused on three-five-year-old kids and used a creativity test developed by NASA. This test helped identify highly creative engineers, thinkers, and problem solvers. It had proven to be incredibly valuable in NASA's recruiting process.

George Land tested the same kids when they were five, ten, and fifteen years of age. 98% of the five-year-old kids passed the test, 30% of those same kids passed the test at ten years old, and 12% of them passed the test at fifteen years old.

Two hundred eighty thousand adults took the NASA creativity test, and only 2% of them passed. The result of the study was the realization that non-creative behavior is learned as people age.

Non-creative behaviors fall into two categories: rules and regulations. The educational model that we use today originated in the Industrial Revolution. The purpose of schooling during this time was to produce good workers who followed instructions.

The question then becomes, can you teach creative thinking? I believe you can teach and learn creative thinking. However, you cannot use traditional learning methods like lecturing, reading, testing, memorization, etc. There are many "creative thinking" courses out there that I would call traditional such as one-day courses, talking head on a YouTube video, or a "guru" speaking on stage.

When it comes to creative learning skills, you first must unlearn by breaking old habits and patterns. Intensify the breaking of old habits by creating new muscle memory. Getting out of the comfort zone is also a big part of this, and it starts with humility. People often come into my workshops with an ego problem stemming from prior successes. Ego is one of the most significant barriers that leaders have when trying to rediscover their creative thinking. Overall, it's an unlearning process, not a learning process.

You don't become a Marine by reading a book. Instead, you go through intense boot camp experiences. Likewise, you don't learn to be creative. You become creative from intense experiences. Becoming creative entails various challenges and tests that put you under stress. Remember the military model and how you can apply it to teaching and learning creative thinking skills.

You should also hang out with creative people that have experience because it creates community. In the Innovation Boot Camp course, we give those who complete the course a callsign— which signifies the experience they went through and achieved. The callsign is a symbol to wear. When we run into someone who has taken the course, we share that common experience of creating community.

The Innovation Boot Camp is a great way to unlearn bad behavior stemming from rules, regulations, and assumptions. The boot camp puts every student into a very intense experience. We start with a blank sheet of paper on Monday and a finished product to pitch on Friday.

As innovators, we should always ask ourselves what the unintended consequences of our inventions will be. Some unintentional things can be positive, but some can be very negative. Let's look at a list of past innovations that I would uninvent if I could.

The first invention that I would like to uninvent is robocalls. These calls include anything from selling automobile maintenance contracts to various telemarketing campaigns. In our office, our employees get eight to twelve robocalls every day.

Robocalling is the result of telephone calls going digital and the creation of voice over IP. This technology opened up the door for the invention of robocalling. The inventors of voice-over IP did not think their invention would be this widely misused. Misuse of the technology has spread more widely as regulators haven't been able to keep up with it.

The second invention I would uninvent is the atomic bomb. Atomic energy has been very beneficial to society. The creation of the atomic bomb is an excellent example of the harmful use of good innovation. If I could, I'd keep using atomic sciences for medicine and energy but get rid of the bomb.

The next thing I would uninvent is speed cameras that clock your vehicle's speed and send you tickets. These have some positive uses, such as license plate tolls that mail a bill to your address and improved road safety.

The bad thing about the speed camera technology is that many third-party companies install cameras and split the toll money with the municipalities. With a third-party in the picture, it opens the door for many unethical practices for these companies.

The fourth technology I would uninvent is social media. I believe social media creates an amplification effect of similarities. Social media algorithms misuse and manipulate data and information and place things in your feed. I prefer to spend my time on LinkedIn and the Innovators Community, which are more professional and don't artificially put stuff in your feed.

Number five on my list is tobacco, a hard one for me as the family on my grandmother's side were tobacco farmers in Kentucky. I remember helping with the tobacco harvest in the summers as a kid. The fundamental role of tobacco is damaging as it is addictive and bad for one's health. My mom was a heavy smoker, so I would love to get rid of tobacco if I could.

The sixth invention I would love to get rid of is chemical weaponry, which started with mustard gas before WW1. Many more dangerous weapons came about because of this invention. Now the world is forced to form treaties to deter abuses of these technologies.

The next thing I would love to get rid of is plastic. Plastic has had many positive uses, especially in healthcare. The early versions of plastic that never decompose are the real problems. Here's an example of an invention with unintended consequences. Innovators were encouraged to solve the problem and resulted in bio-degradable products that are very useful.

In the past, I've shared our work with Lakeside Fish Farm in Rwanda, the largest fish farm in the country. Rwanda has a stringent no-plastic policy. Packaging fish without plastic has proved a challenging task. As a result, there has been a lot of work done on creating alternative packaging that reduces the need for plastic.

Another unintended consequence I wish I could erase is the invention of computer viruses and malware. Many of you may not know that I was doing work around computer viruses and had some engagement with Dr. Fred Cohen in my early days. My work on computer viruses focused on cutting down illegal software copying. The intentions were good, but over time, they led to malware and other dangerous things.

The next on my list is the overuse of chemicals in foods. I've gotten into the habit of reading ingredient lists on the foods I eat and liquids I drink. When looking at the ingredients of food and drink, many chemicals' inclusions solely benefit the producer. These chemicals make foods last longer, cost less to produce, etc. One example is high-fructose corn syrup, a common replacement of sugar that is very unhealthy.

For the tenth and final invention, I want the listeners to think of something they want to uninvent and add to the comments.

We often wonder if people will accept our ideas or criticize them. This fear can halt us from utilizing our creative expression, which ultimately affects how we innovate. When our creativity is encouraged, it can have a positive impact.

When coming up with new ideas, early encouragement gives you the motivation to repeat them. In my seventh-grade art class, my teacher was showing us how to cut linoleum blocks. Being a boy scout, this was a natural thing for me, and I enjoyed experimenting with it. With the knife and the block, I constructed a dragon's head that I used for stamping. The teacher liked the dragon head I created and showcased my work to the entire class.

Unknown to me, she submitted one of my prints to a local art contest, and I placed towards the top of the competition. I still have that linoleum block on my bookshelf, and it continually reminds me of that first level of encouragement I received. What she did can be applied to putting innovative ideas out there.

The question of today is how to encourage creative expression. Showing people that linoleum block I made was risky, as students could have laughed at it. However, I am glad my teacher showcased it because it encouraged me in a way that I didn't think it could. I would love to go back to jr. high and thank my teacher for her encouragement, but unfortunately, I cannot. I can, however, pass on what she did for me by paying it forward to others.

When you see someone being highly creative and coming up with ideas, be encouraging to them. It would help if you were an encourager of others as it holds a lot of value. People don't often realize that words go a long way. However, keep in mind that you should refrain from false platitudes as they decrease the value of your encouragement.

When giving an encouraging word, remember to explain why you are giving this encouragement. Ask questions such as how they came up with the idea. Please provide feedback on how they can do it better but do so in a positive way. Don't be afraid to spread awareness about other people's ideas as well.

While encouraging creative expression is essential, being able to receive it also holds importance properly. Many people suffer from imposter syndrome, which makes it hard for them to receive encouragement. People with this syndrome are afraid of taking any credit for their successes. These people feel as if they just got lucky and don't deserve any of their accomplishments. In this occurrence, our irrational mind tries to credit something else with our success.

I am a big sufferer of imposter syndrome and gave a TEDx talk on the syndrome years back. The experience is where I draw my knowledge on this topic. When people encourage your creative expression, it is crucial to avoid this pitfall. It would be best if you assumed people have positive intent when encouraging you. Ask why they responded the way they did about your ideas and use it as a learning experience.

At this point in my career, I am not the one coming up with many ideas. I build teams and encourage those teams to come up with ideas that turn into innovations. My role is attracting the right talent, creating a solid funding base, protecting from outside antibodies, and being an encourager to my team.

You may think of me as an extroverted person. I've done speeches, hundreds if not thousands of YouTube videos, a radio show, this podcast, etc. The reality is that I am an introvert and am happy being a homebody. I have to work extra hard to be the encourager to those doing interesting work. Encouraging people online tends to be a lot easier but can lead to comparison, which leads to discouragement.

We discussed not letting social media be your validation on a recent show. My friend Ernie, who worked with me at HP, is a great photographer. He spends a lot of time travelling and taking extraordinary photos. I follow him on Instagram, where I post photos that I take as well. When Ernie likes my photos, it is a form of encouragement to me.

Encouragement is a learning opportunity. Remember that you should not expect anything in return for giving out encouragement. Focus on genuine encouragement because it holds meaning. I challenge you to take the next step and encourage people's creative expressions wherever you find yourself today.

We all struggle with being creative from time to time. We may feel like we have lost something, and nothing seems to spark that creative flow. What is killing your creativity? Your ego is the biggest killer of creativity. The struggle tends to become an issue for people in the middle and later years of their career.

When you are called upon to be highly innovative and creative, the fear of failure can often step in and stump you. You might subconsciously have a bias towards making yourself look good and feel good. This bias feeds your ego and vanity and turns into a vicious cycle. I have seen many people get caught in this cycle and eventually get stuck in a rut.

If you look at highly innovative individuals, they tend to be most prolific in their early thirties. This cycle happened to breakthrough artists and inventors such as Ansel Adams, Thomas Edison, Nicola Tesla, and many more.

As you achieve success, it becomes more challenging and more problematic as it feeds the ego. Naturally, you will act in ways that fit into how you want to be perceived by others, resulting in a creativity killer. For example, if you are a top innovator, you will fall into the trap of keeping that specific image or brand. When this happens, your lifestyle, identity, social status, reputation, etc., will impact the creative risks you are willing to take.

You may wonder how I came across all this knowledge of the topic. The knowledge I have comes from what I experienced in my own life. I had great success in the innovation space early on in my career.

In my mid to late twenties, I won two best product of the year awards two years in a row. Three times I led teams that won Fast Company's "Most Innovative Teams" awards, I did numerous products, had a radio show, and now a podcast. Looking back at how I used to be versus how I am now, I realize I am completely different. I now have a brand, a reputation, accolades, and an ego. I recognize that I have let that get in the way of things and hold me back in the past.

Everyone wants people to like them and to keep giving them positive feedback. The more we build up those accolades, the fewer risks we start to take, opening up room for a killer of creativity. To achieve creative success, you need to be aware of your vanity and let go of your ego. Disconnecting your ego from creativity enables you to take risks, which opens up the opportunity for outside success.

Taking risks is essential for innovation success. Without it, you are not going to make progress. Taking risks open up previously unconsidered areas. When you stop caring about what people perceive to be true about you; then you will see success. While this concept is simple, it is not an easy thing to do.

The most significant way to keep your ego at bay is to stop comparing yourself to others. Each of us is on a different creative journey. The path I'm on is not the path you should be on, as no two paths are the same. If you keep comparing yourself to others, you are feeding that ego and will end up disappointed.

In my opinion, social media hurts a lot in this area, primarily through how it impacts your ability to be creative. Social media is not reality, and often give us the idea that we are not as good as others. Don't try to be somebody else, rather be the best version of yourself. Don't shy away from your natural gifts and talents because you will get into a state of self-doubt if you do. Once this happens, you lose your ability to be creative and innovative.

We are currently in a transition from the information and knowledge economy to the creative and innovation economy. Allowing room for a creativity killer will halt your creative potential. You need to find ways to continually nurture your creativity and keep that ego at bay, to be successful going forward.

The Importance of Utilizing Tools

I really enjoy reading as well as listening to podcasts and audible books. With all the information I come across, I have to be able to capture, organize, and recall it to properly utilize it. I'm currently working on a new book as well as some disruptive innovation courses and workshops. The real challenge for me is finding a single tool that solves the issues stated. Over the last six months, I challenged myself to find the right tools and combine them in a way that I can capture the input, organize it, and make it easy to retrieve. The criteria I emphasized was usability on a mobile phone and desktop. I typically carry an Android, iPhone, and laptop on me, as well as an iPad Pro. I need tools that can collect from books, podcasts, websites, magazines, and emails with minimal manual steps. The tools also need to adapt as the content focus shifts. As of late, I have been focused on ethical innovation, but sometimes shift to discussing the digital divide and other things. I also need to be able to find information easily without remembering exact wording. Lastly, I need tools that create the serendipity effect.

The Tools I Use for Innovation

The first tool I have used for innovation is the Moleskine notebook, which I have thousands of. Recently I have shifted to the reMarkable 2 tablet. Using the tablet is just like writing on paper but better. There is a pen for writing and erasing, and it stores and exports all my information to my mobile phone and desktop. I actually wrote out the entire script for today's show on my tablet. On top of my writing, I read a lot of information from RSS news feeds. I am a big user of Feedly, primarily for access to its AI engine. It is very trainable and interprets sentences to see what concepts are being talked about. I scan through 500-600 articles a day and save different feeds that I like to the Pocket app. The Pocket app is a collection of things that you save to read at a later time. Another tool I obtain information from is through my Kindle Oasis. In the Kindle, I can highlight things I like, and they are automatically fed into my workflow for future inspiration. Podcasts are also things that I capture content from. I use an app called Airr, which allows you to capture a podcast snippet that interests you with one touch of the screen. Otter.ai is another tool I am experimenting with to help me capture ideation sessions.

Organization/Combination, and Serendipity Tools

One tool that I found recently was Readwise, which collects everything from my Pocket, podcasts, Kindle, hardcover books, articles, and combines it. Readwise also points out things in your collection that you might not have picked up, triggering serendipity. While Readwise is great, it only prepares information for what I am ultimately looking for. I found an impressive tool called Roam Research, which takes everything from Readwise and organizes it, connecting words and concepts for you. Roam Research runs very well on mobile phones, and I use it for show content, books, articles, etc. I also use the software for my project work and documenting upcoming content for the show.

Sam Liang is one of the key innovators behind the scenes in Silicon Valley. He is one of the founders of Google's location services and on the Google Blue Dot patent. Sam is the co-founder and CEO of Otter.ai, which specializes in live transcription services.

Same earned his Ph.D. at Stanford in hopes of becoming a professor. While in school, he met many smart people working on startups, which influenced him to go that route. He went on to work at Cisco, worked on a startup, and then joined Google for four years.

While at Google, Sam and his team created the Blue Dot and started the Google location server project, which became location services. While we use these services daily, we often don't think of the behind the scenes work that goes into them. When the technology first started coming out, everyone was so amazed by it. Now the market has matured to the point where it is an intrinsic part of daily life.

While Google maps have gone through this process, AI and speech recognition is currently going through it. Even though voice recognition and automatic transcription systems have advanced a lot, there is still more to come.

When using Alexa or Siri, you ask a question or give a command, often taking little time. When using Zoom or similar platforms, there are multiple speakers engaged in a potentially more extended interaction. People often have different accents, speaking styles, and background noises. The technology doesn't handle complicated conversations effectively.

In 2010, we started transcribing the Killer Innovations show using an offshore transcribing service. Even though a human was transcribing it, they couldn't get it right. Human involved transcribing required a lot of effort to go back and clean up the mistakes on my team's part. After a while, we stopped using this service for the show.

For Sam, he realized this was a problem when he always forgot things from meetings. Eventually, he brought a team together to find a solution to this problem. He surveyed the top transcribing technologies of the day and was disappointed by their low quality. The survey opened up an opportunity for his team to create something better.

I am a customer of Otter.ai and am impressed with the transcription accuracy no matter the environment. I use it while in my studio as well as on my phone for capturing notes. Otter offers a system that adapts to people's natural speaking styles automatically. It works in the background no matter how many people are speaking or the speed of their words. Many people use Otter when they are in restaurants, driving a car, or walking their dog. Otter.ai has created a new feature that allows the software to hook up to Zoom when used automatically.

When using the software, you can highlight important things that were said to remember them. For those wanting to skip meetings but still get the information, Otter offers that chance as well. The software also identifies the speakers at the end of the session to connect them with what was said. Otter has released a product that allows people to experience it for free. There are also pro and business versions of Otter for those interested in regular usage.

From what I've observed, people these days are hesitant when being recorded. As being recorded becomes more common, I believe the issue of concern will go away. I predict that it will get to the point where it will be rare not transcribing every meeting. The future of work is going to be through virtual meeting systems such as Zoom.

Currently, Otter is working on a lot of things both on the technology and product side. Different words, names, terminologies, and acronyms are a big focus at the moment. On top of that, they are working on better understanding conversations and their context.

Sam Liang is the CEO and Founder of Otter.ai, an AI-powered live transcription and collaboration app. Before founding Otter.ai, Sam became CEO and Founder of Alohar Mobile in Palo Alto, which Autonavi and Alibaba acquired in 2013. Before that, Sam led the location platform team at Google on the patent for the "blue dot" in Google Maps. Sam has a Ph.D. from Stanford in Electrical Engineering and studied under Professor David Cheriton (first investor in Google and VMware).

We will pick up from the previous show's topic, “What is Innovation?” and talk about innovation types. There are three types that I use. These are institutional innovation, social innovation, and technological innovation.

Institutional innovation is the type that is most commonly overlooked by organizations. Institutional innovation applies to organizations, teams, companies, industries, and governments. This type can have several applications to different industries and co-innovation opportunities within those industries.

Based on how an institution operates and covers things (like policies, procedures, structures etc.), institutional innovation tends to get overlooked because it encompasses day-to-day things that we usually take for granted.

Improving institutional innovation can have a significant impact on an organization. There are a few different ways to do it when it comes to funding institutional/organizational innovation. Firstly, you can do it through entrepreneurship, consisting of going out and finding investors or customers to provide funding. Another way is to be an intrapreneur, coming up with ideas and securing funding from your organization. These are the two funding models within institutional innovation that have the potential to make a significant impact.

Driven by social priorities, social innovation has a positive social impact. Employment, quality of life, equality, or environmental efforts like providing clean water, are only some of the many goals. It is the innovator's passion that often drives these social innovations.

Funding can come from social impact investments. These investments don't seek a return on their investments. Instead, they seek to further a cause wherein they share a similar passion. Finding those who are passionate about the same thing is an effective way to fund this type of innovation.

Another way to fund is through angel investors who want a smaller return than usual due to their passion for the cause. Grants from government agencies, philanthropists, World Bank, etc., can also be a great way to fund social innovations. When working with social innovation, you have to be creative with fundraising efforts to achieve your financial goals.

The most commonly thought of the type of innovation is technological innovation. It comes in the form of new technology such as phones, tablets, software, etc. This type can also be in the form of scientific know-how, pharmaceuticals, manufacturing processes, etc.

In many cases, technological innovation comes from a unique combination of background or expertise that creates something new. The technology doesn't have to be invented from the ground up but requires the dots to be connected.

The funding opportunities for technological innovation are many. First, there are angel investors such as friends and family that invest in you. Next, there are venture capitalists that invest in companies as a profession. These two types of investors fall into the equity category, as you sell a percentage of your company to them to receive their investment.

Another option is corporate venture capitalists, which invest in areas of interest that could impact their corporate entities. There is also customer funding, where a customer interested in buying the product invests early on in it. I made many investments like this while I was at HP and got priority access to a lot of products. Lastly, there are grants such as Small Business Innovation Research (SBIR) grants from the government.

When it comes to ideas, it can be hard to make them sound interesting to investors. There are three elements I teach to those wanting to pitch their ideas. Firstly, there is the “what,” which should be a description of the idea. The next element is the “who,” or who the innovation is for, and who the innovation impacts. There can be multiple “whos” when it comes to ideas. It could be a customer, a government, etc. The third area is “why,” or why the investor should care about your idea. I get pitched hundreds of times a month with new ideas. The one area that most innovators do not think about is the “why.” You need to think about all three of these elements to pitch ideas and gain funding.

To know more about institutional, social, and technological innovation, listen to this week's show: 3 Types of Innovation – Institutional – Social – Technological.

We will pick up from the previous show's topic, "What is Innovation?" and talk about innovation types. There are three types that I use. These are institutional innovation, social innovation, and technological innovation.

Institutional innovation is the type that is most commonly overlooked by organizations. Institutional innovation applies to organizations, teams, companies, industries, and governments. This type can have several applications to different industries and co-innovation opportunities within those industries.

Based on how an institution operates and covers things (like policies, procedures, structures etc.), institutional innovation tends to get overlooked because it encompasses day-to-day things that we usually take for granted.

Improving institutional innovation can have a significant impact on an organization. There are a few different ways to do it when it comes to funding institutional/organizational innovation. Firstly, you can do it through entrepreneurship, consisting of going out and finding investors or customers to provide funding. Another way is to be an intrapreneur, coming up with ideas and securing funding from your organization. These are the two funding models within institutional innovation that have the potential to make a significant impact.

Driven by social priorities, social innovation has a positive social impact. Employment, quality of life, equality, or environmental efforts like providing clean water, are only some of the many goals. It is the innovator's passion that often drives these social innovations.

Funding can come from social impact investments. These investments don't seek a return on their investments. Instead, they seek to further a cause wherein they share a similar passion. Finding those who are passionate about the same thing is an effective way to fund this type of innovation.

Another way to fund is through angel investors who want a smaller return than usual due to their passion for the cause. Grants from government agencies, philanthropists, World Bank, etc., can also be a great way to fund social innovations. When working with social innovation, you have to be creative with fundraising efforts to achieve your financial goals.

The most commonly thought of the type of innovation is technological innovation. It comes in the form of new technology such as phones, tablets, software, etc. This type can also be in the form of scientific know-how, pharmaceuticals, manufacturing processes, etc.

In many cases, technological innovation comes from a unique combination of background or expertise that creates something new. The technology doesn't have to be invented from the ground up but requires the dots to be connected.

The funding opportunities for technological innovation are many. First, there are angel investors such as friends and family that invest in you. Next, there are venture capitalists that invest in companies as a profession. These two types of investors fall into the equity category, as you sell a percentage of your company to them to receive their investment.

Another option is corporate venture capitalists, which invest in areas of interest that could impact their corporate entities. There is also customer funding, where a customer interested in buying the product invests early on in it. I made many investments like this while I was at HP and got priority access to a lot of products. Lastly, there are grants such as Small Business Innovation Research (SBIR) grants from the government.

When it comes to ideas, it can be hard to make them sound interesting to investors. There are three elements I teach to those wanting to pitch their ideas. Firstly, there is the "what," which should be a description of the idea. The next element is the "who," or who the innovation is for, and who the innovation impacts. There can be multiple "whos" when it comes to ideas. It could be a customer, a government, etc. The third area is "why," or why the investor should care about your idea. I get pitched hundreds of times a month with new ideas. The one area that most innovators do not think about is the "why." You need to think about all three of these elements to pitch ideas and gain funding.

A term often abused through advertising, marketing, business meetings, innovation means to introduce something new. A more expansive definition of innovation is — the result of a multi-stage process whereby organizations, teams, and individuals take an idea and transform it to make an improved product, service, or process to compete in the marketplace.

Ideas made real— that is my definition of innovation. Without execution, ideas are just hobbies, not innovation. A spark that turns into an actual product, service, or capability, innovation is about making life better.

Grouping innovation can be done in many different ways, starting with the uses/context of innovations. It can also be grouped by departments of organizations such as marketing, IT, sales, R&D, etc. Another way to categorize it is by looking at who is implementing the innovation. There are thousands of different ways to organize innovations.

I've spent forty years of my career in the innovation game, and there are always new academic papers trying to categorize it. We will boil it down to the uses of innovation and the impact of design to give you a simple mental picture.

The uses of innovation break down into a couple of different groups. Firstly, institutional innovation deals with organizations focused on changing their policies, processes, business models, regulations, etc.

The second area is technological innovation: the scientific know-how, expertise, chemistries, and anything that involves technology. The last area is social innovation, which focuses on improving how we respond to social needs in an organization, affecting employment, ecology, social purposes, and quality of life.

The impacts of innovation fall into three categories. Firstly, incremental innovation is a series of improvements made to a company's products or services. These are typically low-cost and low-risk innovations but can have a significant impact if done correctly.

Next, there are breakthrough innovations, which create new markets and value networks, and disrupt established markets. These get the attention of the marketplace and set a new player as the market leader.

Thirdly, there are disruptive or killer innovations, which are technologies or any form of innovation that significantly affects the way a market or industry functions, typically involving some element of technology, science, or materials that people build on top of. These are things that significantly alter what you or your competitors will be using going forward.

An example of a killer innovation would be the invention of silicon microprocessors. People have created software, browsers, and AI on top of these processors, but the processors themselves are the killer innovations. To qualify as a disruptive or a killer innovation, you have to create a barrier of entry.

Your competitive success is somewhat based on the fact that you have created a foundational position difficult for others to compete. When it comes to innovation impacts, you will most often see incremental innovation. Breakthroughs are much less frequent, riskier, and have a higher investment level but yield a higher reward. For most of us, it is more useful to build on top of these breakthrough innovations and take advantage of what they offer.

I think about the relation of innovation uses and impact in a 3x3 format of what I call the "innovation matrix." The innovation matrix breaks it down horizontally into social innovation, institutional innovation, and technological innovation. Going vertically on the left-hand side, I label it as an incremental, breakthrough, and disruptive/killer innovation. Now, to use this matrix, take your pipeline of innovations and place them in the grid, you think they fit in. This may challenge you to think differently when it comes to making innovation investments.

Another way to use the matrix is by taking a new idea, placing it into the matrix, and narrowing down the impacts and uses it has. I have also used this innovation matrix to break down investment spend on each of the areas. The innovation matrix helps put the uses and impacts of innovation into context. I use the innovation matrix for my organization and coaching or mentoring CEOs and CTOs.