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What a “pot in a pot” can teach us

“Inside out” thinking to solve real world problems

The stated purpose of this blog is “to explore insights … for business and life”.  Several valued readers of this blog recently observed that we have focused a lot on business results, and drifted away from “life lessons”.  So, here’s an incredible story about the type of innovative thinking that can be applied to real life problems … and challenge our thinking about how we approach our own life and business.

Solving a challenge of real world resource constraints

In Retail University workshops, we advocate that participants become regular consumers of the comprehensive e-newsletters available, such as CEA Smartbrief and NRF Smartbrief.  It is very easy to just scan the headlines and skip the Open Forum posts like the one by Matthew May (In Pursuit of Excellence).

In his post entitled:  How Resource Constraints Can Set You Free, May describes an incredible dilemma witnessed by a local United Nations worker in Nigeria.  The problem is common in many underdeveloped nations.  Subsistence farmers need to get their produce to market.  Most often, girls carry them in clay pots to markets.  Due to the intense heat, much of the produce spoils, resulting in health hazards and reduction of the scant income for farmer and the family.

The “western” approach of “Outside In” Solutions

Being a member of “western culture”, I can readily identify with typical “outside in” approaches to solving the problem.  The problem is food spoilage due to heat. So why not work at supplying refrigerators?  Or at least, supply some coolers to keep produce cooler and fresh?  And, how about motorized transport to speed time to market?

The real world challenge in Nigeria is that there are few refrigerators, little motor transport, and little or no electricity.  Most could not afford electricity to make ice for the coolers, even if they had a cooler and the means to make ice.  In short, the “outside in” solutions from developed countries to solve food preservation are too expensive, unsustainable and do not fit the culture and needs of local markets.

When thinking from the “outside in”, we most often approach problems by solving for constraints … trying to fill the gaps based on what we have.

Removing constraints through “Inside Out” innovation

Instead of trying to fill the gaps, Abba, the United Nations worker, approached solving the problem from the “inside out” starting with local culture and what was available. Clay pots and jars are a part of the Nigerian culture and method of transport.  The material to make the clay pots is readily available, sustainable and knowledge already exists with the local people on how to produce them.

The solution literally became one of “inside out” innovation.  By designing a pot inside of another pot and filling the gap with wet sand, it created both insulation and cooling.  Putting a wet cloth over the inner jar further facilitated evaporation cooling.  The result was temperatures at least 15 degrees cooler.  This helped to eliminate the growth of bacteria and harmful microorganisms causing spoilage.  Fresh produce like tomatoes can now be kept salable for weeks, instead of a day or two.

I encourage you go read and see the picture of Mohammad Bha Abba’s pot in a pot.

Abba’s inside out thinking created a green solution, sustainable by local people.  A pot in a pot has enriched the lives of many in many ways.

What this can teach us about life … and business

When you encounter a problem with formidable resource constraints, how many times do you approach from the “outside” trying to purchase the lacking resources … or applying a familiar solution to fill a gap?

Perhaps, it is western culture and heritage. Or maybe, it is abundant resources.   All too often, our western approach to innovation is “outside in” of supplying solutions to fill gaps.

How does this apply to business and retail?  Just take an inventory of all the “outside in” MDF, COOP and marketing solutions provided by manufacturers to “fix” gaps in retail.  And, apparently that is not even enough.  Manufactures have been building their own stores within retailer stores and staffing them to “fix” the customer experience.

Maybe, when manufacturers start building their own retail stores they will finally be ready for the kind of “inside out” thinking and approach to retail innovation.  In fact, I would recommend a picture of Abba’s pot in a pot in the break room … and board room.

The next big “social” thing – Location Tracking

Are you willing to give up your location to join a “tribe”?

Mobile devices not only enable instant access to social networks, they create a behavioral trail.  Companies with the ability to track individual cell phone locations are now identifying behavioral patterns in order to better target consumers.  Are you willing to disclose your cell location in order to become part of the “tribe” with similar patterns and tastes?

Segmentation based on cell phone location tracking

Stephen Baker, author of Numerati, has a posted a great BusinessWeek video on how marketers are starting to tap the behavioral data collected from cell phone location tracking.  Two of the top companies pioneering location tracking of cell phones are Location Sense … and, you guessed it – Google!

 

 

 

 

 

 

 

 

 

 

Stephen Baker BusinessWeek Location Tracking Video

Which Behavioral Tribe do you belong to? Do you care?

Location Sense has currently identified twelve “tribes” based on location tracking data from cell phones.  For example, the behavioral patterns of the “young and edgy” tribe like to go out at night and party, while the “stay at home” tribe tend to be more homebodies who make functional trips based on work and family needs.  The ability to identify consumer patterns based on actual behavior of what they visit, where and when has immediate target marketing implications which go beyond the usual demographic segmentation profiles.

Are you willing to risk having someone track you?

Tracking via your cell phone is a voluntary subscription with either Location Sense, or with friends via Google Latitude.  Both assure consumers that all data is anonymous and only consolidated to discover patterns.  But, your various locations tracked from your cell phone are definitely stored in a database.  Can those records ultimately be subpoenaed by a court?  Do you really want targeted marketing offers based on where you visit shop and go for entertainment?

Why Location Tracking is the next killer “social” app

Why would anyone want to share their location data?  The answer seems to lie in the rush to share information in new ways with friends and networks.  Just look at the success of Flikr, Facebook, and Twitter.  All made it incredibly easy to share personal information, thoughts and even family photos, without having to use even a computer.

The emerging critical success factors of social networks:

·         FREE to the consumer

·         Incredibly easy search, establish connections

·         Easily managed and accessed on Smartphones

·         Rich personal exchange not easily accomplished anywhere else

·         Real time … in the moment information

Location tracking software meets all of these criteria.  It creates a unique, personal data available nowhere else.  While you may not want it turned on all the time, imagine being able to track family on vacation, or seeing who in your network is nearby to have a drink and dinner.  Yes, there will be those more than willing to sign up to have cell phone tracking … thousands are signing up this week as you read this.

The big winners - The location tracking providers

IF … and this is the big if, the location tracking services can ensure anonymity, confidentiality and ease of use … the enlighten leaders like Google and Location Sense will be huge winners sitting on top of a gold mine of real time consumer behavioral data based on their actual patterns and choices.

Is Twitter really worth $500 Million?

Apparently it is now.  Twitter founders recently walked away from a $500M purchase offer from Facebook.  They reportedly walked away from the deal because they believe that the best of Twitter is yet to come. http://adage.com/digital/article?article_id=135016

People keep asking me what’s the big deal about Twitter?  What can Twitter do that Google or Facebook can’t?

Google is the master at looking backwards at documents and media that have been already been produced.  What makes Twitter search unique is the ability to analyze “what’s happening right now”.  If consumer marketers learn how to plug in, this becomes a rich gold mine.

In practical terms if you search for where to go to get a drink on Google, you will get a listing and maps for all establishments in an area.  If you put a search out on Twitter, you will get first hand impressions from real consumers who recommend specific bars … even from some that might be sitting in a specific bar at the moment.  For marketers, Twitter provides a rich source of data, and the potential to interact with real consumers “in the moment”. 

Twitter’s founders are betting that this consumer goldmine will soon be worth billions.

Tweets on Twitter in the news!

Obama Tweets no more!

If anyone doubts the value of Twitter, one only needs to examine Barack Obama’s campaign for President.  Obama’s team was a master at mobilizing youth, rallies and contributions through Twitter and Facebook.   At the height of the campaign, Obama put out over 250 “tweets” a day (well, were sure that there were a few more people helping to write them).

There have been no tweets from Obama on Twitter after becoming President.  Perhaps he is a little busier now, or his new form of secure smart phone does not tweet.  Still, wouldn’t it be refreshing if leaders actually had to state a position of record in 140 characters or less!

http://gadgetwise.blogs.nytimes.com/2009/02/25/president-obama-abandons-twitter/?ref=technology

Twitter: Inanity or valuable business tool?

Can you afford not to “tweet” or “follow”?

Like many of you, I thought that Twitter was the stuff of youth - just another version of IM to tell friends what you are eating, doing or watching.  The recent headlines from the biggest players in the industry indicate that Twitter is becoming an integral business tool.  With literally billions of tweets out there, can you afford to be on the sidelines?

Trail Signs of Twitter Legitimacy

Twitter seems to be popping up everywhere in the news.  Not only is it grabbing headlines in the industry press, it was just featured on Nightline this week.  Perhaps a crowning jewel of legitimacy is that Twitter Execs were included with Google, Facebook and MySpace to attend the exclusive P&G’s strategic “confab on social” called Digital Night scheduled March 9^th.

Twitter as Microblogging

Twitter was never intended to replace email, blogs or IM (instant messaging).  Twitter is a free service that gives you a maximum of 140 characters to answer a basic status question:  “What are you doing?”   Postings are called “tweets”.  Twitter allows establishing social connections to plug into conversations on the literally “inane things” people are doing at the moment.  You can literally tie Twitter to Facebook to parallel post “what you are doing”.  But, you can also follow genuine issues, topics and exchange of ideas with close contacts, establish an impromptu meeting, social gathering … or listen to potential customers!

 Key:  Listen as much or more than you Tweet!

In addition to posting your own tweets, you can follow other people’s postings.  Herein lies a treasure trove of current information … a real time pulse of what people are currently thinking and saying about a variety of topics, including your products and services.  The key here is to tap into following people on Twitter who provide value and insights within their 140 character limit for tweets.

Results Count … Can you Measure any of this stuff?

While Twitter is absolutely free, the time it takes to manage is not.  Individuals and companies need to evaluate what is gained from close connections with communities and consumers. While Twitter can be the most cost effective way to put the “buzz” out on new products, there is no guarantee that consumers will listen or go to a specific web site to purchase.  They may just buy at Amazon or Walmart.  It is not much different than the challenge of measuring traditional advertising!

Great Case Example of Twitter Real Time

Mike Schaffner wrote an interesting post regarding a tweet to a friend.  The friend asked about shoes.  Mike responded in a Tweet to check Zappos.  A very short time later the CEO for on-line Zappos responded back directly to Mike Schaffner because they had literally followed his tweet.  Scary stuff in cyberspace?  Perhaps.  But can you afford not to be plugged in to this kind of real-time consumer dialog?       

Here was my bottom line:  The CEO of Zappos, Tony Hsieh has more than 55,000 people following him on Twitter.  Where else can you get that kind of close connection with so many consumers built so rapidly for free?  Perhaps we should measure a company’s “consumer centricity” by how many consumers follow the CEO on Twitter!

Postscript:  Yes I made the leap, I’m on Twitter!

Since we are now covering social networking within our Retail University, I decided it was time to “do it” rather than talk about it.  It was amazingly easy to sign up at Twitter.com.  What is not so easy for me is constructing meaningful tweets of just 140 characters! 

How I plan to use twitter

·         To reference key insight articles I find while doing research

·         Tweet on references and tools that might be valuable to others

·         To post my status and observations when I conduct Retail University workshops, especially internationally

·         To listen widely … to follow a wide variety of interesting people both inside and outside of my industry

·         To listen to actual consumers … what are their real time concerns, issues and topics of discussion.

You can now tweet me or follow me on Twitter @chrishpetersen

Is the light out at the end of your tunnel?

The worst of times drive the best to innovate

Maybe you received the same email notice I did … Due to the economy, the proverbial light at the end of the tunnel has been turned off!   The “worst of times” are the “best of times” for the innovators who capture shifts in consumer habits and values.  If there is no light at the end of your tunnel, then it’s time to look at “new tunnels” where consumers are shifting both their values and purchases.  

Innovation focused on how and where people shop

Let’s start with how and where consumers shop.  While most retailers in western countries report comp store sales flat or declining, internet sales showed substantial growth.  Internet Retailer just reported sales growth of 20.7% for the companies reporting web only sales for 2008.

Consumers are not just turning to the web for price.  They are increasingly voting for convenience, selection and customer service.  The innovative web specialists have capitalized on this consumer shift, and their market share will continue to grow regardless of the economy. 

Innovating to capitalize on consumer preference shifts

Pick a news source of choice … overall consumer sales are down in many categories of traditional retail.  So where are the opportunities?  Consumers are voting as they always have … with their wallets.  These areas of growth provide insights on how to innovate to tap consumer shifts in behavior, needs and values.

Netbooks!  The name is synonymous with changing consumer perceptions of what they need to access social networks, search the net and stay in touch via messaging and tweets.  While consumers will not stop buying computers, their preference shift is toward smaller, lighter, cheaper, more convenient “networking devices” for “connections”. 

Smart phones!  The new computing device of choice may not even resemble a notebook or netbook.  According to NPD the sales of smart phone units almost doubled from 2007 to 2008.  Smartphone growth is just one example that consumers are justifying a “little splurge” spending on something that provides essentials, plus some “escape” and entertainment.

Ecosystems Beyond Products!  The naysayers might argue that the smart phone revenue was a tiny fraction of past PC revenue.  However, the i-Phone ecosystem has already proven the power to generate revenue from shifting consumer preferences for smaller inexpensive “apps” which address specific needs.  Just review the headlines this week to watch as Google, Microsoft, Blackberry and others are announcing their ecosystems to tap and monetize this consumer shift.

Retail Reality: 

It’s a whole lot easier (and more profitable) to sell them what they want to buy … than what you want to sell them … especially in these economic times!

Need some more ideas ... check out Fast Company's current article on The World's Most Innovative Companies.

The Year of the Ox featured in print ads

Smart marketers are going beyond traditional holidays

Bill Imada posted an enlightening follow-up article in today’s Ad Age.  It features Lunar New Year ads from companies marketing to Asian communities in the US.  Fifteen different ads from Asian marketers are featured in the slide show at the end of his post.

While I certainly can’t read the text, the picture in the ad from Walmart seems to best capture the essence of Lunar New Year holiday celebration … complete with family and the traditional red envelopes.

 

Copy of ad featured in Ad Age, Bill Imada post … one of 15 ads focused on celebrating the new Lunar New Year … The Year of the OX.

What does an Ox have to do with Retail?

International retail perspectives - The Asian New Year

In case you missed it, Monday January 26^th was the start of the Asian New Year.  The Lunar New Year is a classic example of why US based companies need to increase awareness of international holidays and their potential impact on retail abroad and in the US.

Asian and Vietnamese families celebrate more than just the day starting of the Lunar New Year.  Most gather family and friends and will celebrate this entire week … some as long as 15 days.  Now this is my kind of “eat about it” New Year’s celebration!

Lunar New Year Gift Giving – The Red Envelopes

Most Asian families, including Asian Americans observing the holiday, gather family and friends for dinners and intimate gatherings.  It is customary to give relatives and children traditional “red envelopes” containing monetary gifts.

Western economies could use the Lunar New Year red envelope tradition to stimulate retail right now!

Not so Fast – There is more than One Start of Lunar New Year

While most Chinese and Vietnamese will celebrate the Lunar New Year this week, different Asian cultures such as Cambodian, Hmong, Lao and Thai observe their New Year celebrations in February, March, April or even in December.   

Like many widely observed holidays, the Lunar New Year celebrations have been adapted to school schedules … and yes, to take advantage of local and cultural retail opportunities.

First rule of international retail, ALWAYS check the local calendar for observance of key cultural events and holidays.  

International Retail University Perspectives & Workshops

As I embark on delivering international Retail University workshops this year, we are compiling seasonality factors based on different regional and cultural patterns and holidays.  We welcome any input you might have regarding international perspectives, patterns and differences impacting retail.

I look forward to reporting back first hand experiences from this year’s Retail U workshops scheduled in Europe, Asia Pacific and China.

Year of the Ox – Perspectives and Trivia

Bill Imada has written a great article in Ad Age summarizing Asian interpretations of the “Year of the Ox”.  His summary of the Ox seems most appropriate for this coming year whether we use the Gregorian or Lunar calendar:

The Ox is the second icon in the Asian zodiac. Because of its position near the top of the zodiac hierarchy, the Ox typically represents a period of renewal and rebirth, or a fresh start

People born in any of these years would be Oxen: 1913, 1925, 1937, 1949, 1961, 1973, 1985, 1997 and 2009.

May you find reasons to celebrate renewal in the Year of the Ox!