Point: Ted Turner’s tips for seeing over the horizon

Story: Many leaders are described as “visionary” — I’m always curious as to how they got that way. Is it something they’re born with, or something we can we all learn?  I had a chance to participate in a Silicon Flatirons Q&A with media mogul Ted Turner as we probed this question with Ted.

Before CNN, people didn’t think that a 24-hour-a-day news channel was viable.  How did Ted prove them wrong? “It helps to see over the horizon,” Ted said.  ‘Most people can’t do it, but I think your brain is like a muscle. And just like any other muscle, you can use it and your brain will improve.”

Ted elaborated: “I have a 128 IQ, but 140 is genius.  I was in the 97th percentile, so that means 3 percent of people were smarter than me. I knew I was going to have to work hard if I wanted to accomplish something in life. So I read a lot — classics, warfare, Alexander the Great — I used my brain all the time. Everything I did was education.  Others just shot the breeze, wasted time — nothing wrong with that, but you can’t get to the top doing that.”

Ted’s answer points to a combination of aptitude and hard work. (I think it’s interesting that Ted thought being in the 97th percentile meant he’d have to work hard if he wanted to accomplish something — it reminded me of Andy Grove’s “only the paranoid survive” philosophy.)

What did Ted see over the horizon? As Ted described it, the idea for CNN was born of his own desire to stay on top of the news but, as a busy executive, not having time to watch the news during the two times a day it was on during the 1970s. “I knew I was gambling with CNN, but I knew it would work,” Ted said. “At the time, the news came on at 6:30 and again at 11pm. I never saw the news — it was inconvenient. I knew that having news on 24 hours a day so you could check in anytime was something that people would want.”

Beyond CNN, Ted was also working to build a multichannel universe. CNN fit into this universe perfectly.  In the 1970s, three broadcast networks — ABC, NBC and CBS — controlled the programming people could see.  For example, sports games across the country were televized, but they couldn’t be seen outside the local area because the broadcasters had a monopoly.  “The broadcasters had carved up the games,” Ted said, dividing the NFL, AFL and Monday Night Football between them. “Everyone paid the same prices and made the same profit. All three networks were happy, but I wasn’t happy” — customers weren’t being served, and incumbents had no incentive to change.

This is where Ted’s reading and habit of learning came into play again. “It was in early 1975 that I saw an article about communications satellites in Broadcasting magazine,” Ted recalled. Reading the article, Ted realized that he could use one satellite “antenna” in space to cover all of North America.  He’d found a way to compete with the established networks.

There’d be more hard work along the way — “We sweated payroll for ten years,” Ted said — but Ted relished the challenges. “The way to lead is with infectious enthusiasm, get everyone enthusiastic about what we’re doing.”

Action:
* Fit your current strategy into the larger picture: Ted’s vision for CNN was part of his overall goal to build a multi-channel universe
* Lead with infectious enthusiasm

Sources:
Silicon Flatirons Q&A November 13, 2009

Call Me Ted, by Ted Turner

Point:  Accelerate innovation by finding an analogous solution from a different industry.

Story:
Henry Ford’s assembly line is often touted as a breakthrough innovation. What’s less known is that Ford got the idea by seeing the “disassembly line” process of butchering hogs at the Philip Armour meatpacking company in Chicago. Similar techniques were also already being used by Campbell’s to automate canned food production.

Adopting ideas from other industries and applying them to your own industry is a powerful and proven source of innovation. But what if you don’t know which industry to examine, or where to look for that potentially breakthrough idea? Solutions may arrive serendipitously as you visit companies and read widely, but how do you accelerate the process and make it systematic?

One exciting solution I came across was described by Jim Todhunter, CTO of Invention Machine at the Open Innovation Summit last month. Invention Machine’s Goldfire software uses semantic technology to access a vast collection of scientific principles, patents, articles and Deep Web technical websites (meaning you can’t find them via standard search engines like Google). Simply put, Goldfire automates searching for analogous solutions in different industries.  I talked with Todhunter to learn more about how Goldfire, an innovation platform, can help a company innovate systematically.

Todhunter described how a manufacturer of plumbing fixtures used adjacencies to remove lead from their plumbing fixtures.  Companies have long known the dangers of lead and have substituted copper pipes for lead ones and stopped using lead-based solders for plumbing. But most of us don’t realize that fixtures like brass faucets also contain lead in the brass alloys. The reason faucets contain lead is because lead makes the brass machinable. A couple percent of lead mixed into the copper and zinc of the brass makes it easier to mill attractive surfaces, drill clean holes, and create smooth pipe threads on the brass.  In short, the lead helps a faucet manufacturer create attractive, high-quality faucets. But over time, some of the lead in the brass leaches out into the water that flows through the faucet, which poses some health risks.

The faucet maker realized they needed help to solve the problem and turned to Invention Machine’s Goldfire software to find feasible external innovations. “Goldfire helped them in two ways,” Todhunter said, “in terms of what are called adjacencies and proof points.”

Adjacencies involve finding potentially analogous innovations found in other industries. For example, faucet makers aren’t the only companies worried about producing quality products from hard-to-machine materials.  “On the adjacency side, when the company started to examine the problem with Goldfire, they were able to discover that there were technologies and methods used in other industries that could obviate the need for lead in brass,” Todhunter said. In particular, the manufacturer discovered that woodworkers have clever techniques for milling wood.  These techniques could be adapted to machining lead-free brass.

The second help to accelerate the innovative solution is called proof points — tangible examples that prove a solution is commercially feasible.  In terms of proof points (i.e., “are there ways to do this?”), the manufacturer was able to discover a very clear proof point through Goldfire: someone had already discovered a way to make millable lead-free brass.  “The client didn’t even have to go invent this material — they were able to find a supplier,” Todhunter said.  “As a result, the faucet maker accelerated their time to market for delivery on this kind of concept tremendously because this discovery created a partnering opportunity.”

Action:

• Clearly define the problem at hand (e.g., lead-free brass AND attractive, high-quality machined features)
• Survey adjacent industries or applications for ideas that overcome the problem (e.g., tricks for milling a hard-to-mill material)
• Survey external innovations and suppliers for proof points (e.g., a commercially available, lead-free brass alloy that is machinable)
• Combine externally-found adjacencies and proof points (i.e., use the best adjacent methods on the best proof point solutions)

For Additional Information:

Computer power yields radical ideas, by Stuart F. Brown, Fortune

Innovation to the Core: A Blueprint for Transforming the Way Your Company Innovates by Peter Skarzynski and Rowan Gibson

Point: Open innovation makes developing niche products and services affordable

Story:Tesco.com, the world’s largest online grocery retailer, is opening its API to third-party developers. Developers get access to Tesco’s powerful grocery engine to design apps for specialized purposes. For example, a developer could design an app for customers who have an allergy to peanuts. The app would display only those Tesco grocery items that are free of any peanuts. Likewise, another app could focus on calorie counting: customers could order just the right amount of food to stay within the calorie, carb, and fat limits of their chosen diet.

The Open Innovation strategy is a win/win: Tesco doesn’t have time to develop and support all these apps internally, so it benefits from the skills of external developers. The developers might have special relationships with particular customer segments (e.g., a tie to allergist or being the author of a best-selling diet books).  External developers get compensated (currently 5 pounds) for each new customer who signs on to Tesco.com, and they receive a micropayment for each purchase made that used the app.

The biggest hurdle Tesco executives had to overcome before opening up to external developers was “allowing someone to be between us and the customer,” said Nick Lansley, head of Tesco.com. “This is an issue. But what convinced us is that we don’t have the time or resources to write for all these different websites, but others do.”  Tesco requires that developers must support the app and they can’t use “Tesco” in the title, only “powered by the Tesco API.”  To further convince developers that the initiative is real, Tesco stated that they will maintain the API for at least two years.

Action:

1. Define a reusable interface that lets software developers bundle or use your systems to meet new needs
2. Create a mutually-beneficial compensation plan to both attract developers and to encourage developers to attract customers
3. Pledge to support the API

For Further Information:

http://www.vimeo.com/7738321