In recent months there have been increasing mentions of the concept of “desktop manufacturing” in both technical and lay press. “Desktop manufacturing” refers to the use of 3D Printing technologies to generate products using designs developed on or delivered to a user’s computer. This revolution has been coming for some time; with Fast Company stating that “the end of the current production- manufacturing economic model may be on the horizon” back in 2009. In a keynote at the FEI 2012 conference Chris Anderson of Wired magazine spoke on the new business models that these technologies are enabling –enthralling the audience with stories of successful application of the technology. Anderson went so far as to say we are only at the dot-matrix stage of this technology, with massive growth and development poised to occur.
Indeed, increasingly advanced 3D printers and the computer-aided design (CAD) programs that support them are being made available at lower and lower prices to small companies that rent time and capacity to other companies and to individual consumers with the interest.
But why should this topic be important to the Osmotic Innovator?
– Rapid Prototyping: the ability to quickly turn-around prototype products should not be underestimated. Only 10 years ago prototypes were used sparingly due to cost and time to manufacture, limiting consumer interactions with test concept designs to 2D images and descriptions. Even today many large companies have their own 3D printing capacity to churn out test designs quickly. The 3D printers of tomorrow may be simple enough to allow product developers with no design experience to create and modify innovative new solutions early in the process. It appears inevitable that the 3D printers of tomorrow will be capable of handling multiple materials to create complex mechanical objects. Making efficient use of these systems has the potential to transform the product development process even further.
– Do-It-Yourself Mentality: the students of today (as well as many of the tinkerers) are beginning to see this technology as a normal part of doing business. Whereas teams that want to have the capability to model and create products on the fly currently need to staff individuals with design competency and engineering backgrounds the skills needed to use these tools are increasingly part of a basic technical education. Workshops that allow creative people to access these tools in their free time are also democratizing the product development process, making it possible that competition (or opportunity) for your company is going to come from unanticipated sources in the future. Your best customers might become your worst competition as they are able to harness this technology to make their own product improvements. Having a strategy to harness this technology and those with the skills appropriately will part of doing business in the future.
– Future Technologies / Business Models: just as desktop publishing transformed the creation and distribution of printed content innovators should be ready for desktop manufacturing to have a similar impact on the creation, manufacturing, and distribution of new products. How your company will respond to, or position itself within these changes will go far to determining its future.
Regardless of your experiences with desktop manufacturing in the past, it is clear it is a concept that is poised to transform a multitude of industries. As an Osmotic Innovator there are a number of opportunities that can be leveraged to boost your teams’ effectiveness. Are you ready to seize the chance before your competitors do?
Start-ups are typically considered to be free-thinking, risk-taking, and open-minded – characteristics that are universally agreed as necessary for incubation of radical or disruptive innovation. Meanwhile large companies are viewed as too results-focused and risk-averse to create anything besides slow incremental innovations. Is this commonly-held assumption truth or fiction or something in-between and are start-ups or large firms better positioned to successfully commercialize innovation?
Who or where you ask these questions will generally inform the final answer. At most big corporations they focus on the extremely high failure rate for start-ups (even the ones that obtain VC funding) while in the converse situation they’ll point to the radical or disruptive work done by Twitter and Facebook and compare it to the relatively incremental product improvements being churned out by their larger counterparts.
In “Why Small Companies Have the Innovation Advantage”[i] Sam Hogg argues that small companies are more innovative because, besides differences in culture (valuing entrepreneurship more highly) and organizational structure (making faster decisions), they are built to take risks that a larger company cannot justify. However, justifying innovativeness based on risk tolerance alone just doesn’t make sense. The counter-argument could be made that big companies have a better process to balance risk – by ensuring that innovative projects with the highest potential for success are funded while those that do not meet internal standards are killed or allowed to leave for external development (where failure cannot hurt the bottom line) or that bigger companies are better positioned to understand their markets.
This counterargument leads to a point made regarding 3M in a past Schumpeter column in The Economist[ii] – that large companies “can combine the virtues of creativity and scale. 3M likes to conduct lots of small experiments, just like a start-up. But it can also mix technologies from a wide range of areas and, if an idea catches fire, summon up vast resources to feed the flames.” If one is to take this side of the discussion fully, one then assumes that large companies have the knowledge and resources to determine what areas to work in and which ideas to fund toward development and thus have the advantage in innovation.
That entrepreneurial people can have a bigger impact by leveraging the resources of a larger company to drive innovation is a sentiment shared by no-less than Sean Parker[iii], who feels that many talented engineers and product designers starting their own companies could have a bigger impact at the larger firms they are flocking away from.
So, if big companies have inherent advantages in scale, expertise, and distribution that make them more capable of capitalizing on innovation, how can we explain the downfall of Blockbuster or Kodak, two companies with market leading positions that missed the opportunity to innovate in their space? It appears the advantage in resources and skills is not enough to ensure innovation.
Some suggest that by acting like start-ups big companies can effectively utilize their strengths to make real, transformative innovation.[iv] That means taking risks, getting passionate talent that can be directed toward a single goal, interacting with the customer more often, and streamlining bureaucracy.
Steve Jobs’ own description of Apple[v] shows that he bought into this theory – that to be innovative companies, regardless of size, need to embrace a culture that encourages innovation. At Apple that culture meant a focused strategy, a willingness to tolerate tension in favor of working together, and instilling a cross-disciplinary view of how the company can succeed. All-told, this strategy hasn’t worked out too poorly for Apple but probably can’t be expected to work or be as easily deployed at other large companies lacking the strong leadership Steve Jobs’ offered.
Jobs’ would have likely agreed with a point made in the Schumpeter column mentioned earlier2; “The key to promoting innovation (and productivity in general) lies in allowing vigorous new companies to grow big, and inefficient old ones to die.”
On the balance, a fair conclusion would be that start-ups do generally embody characteristics that allow innovative ideas to succeed along with an inherently high tolerance for risk but can lack the resources and connections to effectively capitalize on them while bigger firms offer better systems, skills, and distribution channels but can stifle innovation through a reluctance to accept risk and overly-complicated bureaucracy that frustrates entrepreneurs.
Are start-ups more innovative? Only when large companies chose to stifle their ability to make meaningful innovation real.
What is the lesson for the Osmotic Innovator? Structure teams within your organization to value the things that allow innovative ideas to move forward and succeed. Even if the CEO doesn’t value a start-up culture like Steve Jobs you should do your best to encourage the same values in your teams’ innovation efforts.
– Ensure clear focus – make sure the strategy, mission, and customer for your organization is always front and center
– Tolerate tension and argument – people should be willing to speak-up, dissent with listening allows for the best ideas to move forward, product improvements to be made, and builds ownership
– Accept balanced risk –maintain a portfolio of projects that exhibit different degrees of risk, without accepting risk few disruptive or radical ideas will be allocated sufficient resources to succeed
– Give people responsibility – encourage your team to be entrepreneurs that take on leadership and ownership of the ideas they are passionate about
[iii] Eric Schonfeld. Sean Parker: “Little Startups Are Ridiculously Over-Funded” TechCruch. Nov 15, 2011. http://techcrunch.com/2011/11/15/sean-parker-little-startups-are-ridiculously-overfunded/
[iv] Tomkubilius. 4 Ways Big Companies Can Act Like Start-Ups to be More Innovative. Story of Design by Bright Innovation. March 30, 2011. http://storyofdesign.com/2011/03/30/4-ways-big-companies-can-act-like-start-ups-to-be-more-innovative/
[v] Nilofer Merchant. Apples Startup Culture. Bloomberg Businessweek. June 14, 2010. http://www.businessweek.com/innovate/content/jun2010/id20100610_525759.htm