Point: Innovation can bring tremendous value to the problem of scarce resources.

Story: The World Health Organization reports that water scarcity affects one in three people on every continent, including areas that have plenty of rainfall. Access to clean drinking water or adequate amounts of water for farming and industrial use are at issue. Further research shows that by the year 2035, two-thirds of the world will have water shortages. In China, two-thirds of its 660 cities already face water issues today; by 2035, they will see severe water shortages.

The fact, however, is that the world has plenty of fresh water — 2 trillion liters per person. But, the resource is not well distributed. Worse, water quality matters as much as water quantity. Contaminated water creates problems for human consumers, agriculture, and high value marine ecosystems. Only uncontaminated water counts toward solving this crisis.

What can be done? Companies like IBM are harnessing IT to address the problem. One example is the SmartBay project in Ireland, which seeks to monitor water properties in Galway Bay to help manage commercial fishing & aquaculture. Networks of sensor buoys, tide gauges, wave riders and data analysis nodes provide up-to-date environmental information to monitoring agencies and the public. In a second example, IBM is applying its materials science research to create better desalination technology for producing purified water. In particular, the new filter material can remove more toxic metals than can the old technology. Third, IBM is leveraging is expertise in super computing to offer “Deep Thunder” for advanced weather predictions and simulations that could affect water supply or water reservoirs.

IBM’s efforts on water resources are part of a broader pattern and opportunity for innovators. The world has no shortage of scarcities. Applications, people, companies and even countries compete for water, energy, minerals, money, and attention. This means that innovators can create value by inventing clever means to improve the production, utilization, and productivity of each scarce resource.

Action:

To address the problem of any scarce resource:

• Collaborate with experts to understand the supply-side issues of a scarce resource.
• Survey resource users to understand demand-side patterns, value propositions, and capability gaps.
• Look for solutions that:

• *** maximize production of the scarce resource
• *** improve quality of the resource
• *** help connect supply with demand
• *** increase efficiency of use, prevent waste, or support recycling of the resource.

Point: Products that perform a rational purpose can fail if they don’t address emotional needs

Story: At the World Innovation Forum, Donna Sturgess, Global Head of Innovation at GlaxoSmithKline Consumer Healthcare, described some of the innovations behind Alli, an over-the-counter weight-loss drug which can help people lose 50% more weight. As I see it, the heart of the innovation lies beyond the physical chemistry of the medication (which blocks the absorption of fat) because the medication does no good if it’s not taken at mealtime. Instead, the real innovation is in the emotional chemistry of the small blue pill carrier called the Shuttle, which encourages the person to stay on their diet.

Alli faces two significant challenges. First, the pharmaceutical performance of a medication means nothing if patients don’t take the drug. Compliance could be a issue with Alli because it needs to be taken with meals, including meals eaten outside the home. That means people need to carry their pills with them.

Second, dieting comes with strong emotional issues. Dieters run a gauntlet of body self-image issues, willpower, fear of failure, and cravings as they attempt to achieve their goals. Sturgess cited data that emotional issues affect 85% of all decisions. Products that perform a rational purpose can fail if they don’t address emotional needs and wants.

To provide emotional support, GlaxoSmithKline designed the Shuttle to be both discrete and distinctive. The calming blue pill carrier looks like a contact lens case. The linear-arrangement of three smooth lobes fits comfortably in the hand. GlaxoSmithKline gave the Shuttle a smooth texture, like a worry-stone. The company intentionally left off any brand markings or names to avoid customer embarrassment — only fellow Alli users know what the little blue case means. The point is that the Shuttle is more than just a functional accessory: it’s a emotional talisman to support dieting.

Action

• Consider the emotional experiences, contexts, and meaning of the product and the product’s use.
• Create product artifacts or accessories that support those emotional experiences.
• Use non-functional product attributes (e.g., color, shape, and surface texture) to convey emotion.

Photo courtesy of Dov Friedmann – PhotographybyDov.com

Point: Merging functionality can create innovations in efficiency and convenience
Story: As someone who spends more than my fair share of time in airports, I’ve wondered if passengers don’t deserve frequent flier miles for distances walked all over the terminal buildings. The food court is one place, the gate is in another, and finding a power outlet to recharge the laptop for the long flight home is always a challenge. In most airports, no single location suffices for all these purposes. When sitting at the gate, one doesn’t know if one has time to go grab a bite to eat. And when sitting at the restaurant, one doesn’t know if one’s flight is about to board.

OTG tackled this problem when they designed the airport experience for JetBLue’s new T5 terminal at JFK airport. OTG created a new mixed-use approach for some of the gate space. About half the 26 gates have special 16-seat clusters called “re:vive” that lets passengers eat, recharge, and keep an eye on their flight. Touchscreen monitors and credit card readers let passengers order, pay for, and have food delivered right to the gate. The ordering process even provides a delivery time estimate before a passenger gives the final “OK” for the order.

“Re:vive” is more than just a passenger convenience. It also boosts revenues for food concessionaires by reaching the underserved market of so-called “gate huggers” — passengers who don’t want to leave the gate area.

The “re:vive” concept is not unlike the notion of mixed-use building developments for cities, which create buildings with retail on the first floor, offices on the second and residential condos or lofts on the top floors. Mixed-use reduces urban sprawl and urban commuting times in the same way that re:vive reduces airport terminal sprawl and the burden of dragging luggage to and fro. Co-locating the functions that people need provides convenience.

Action:

• Look for the customer activities that are currently separate but that could be concurrent or co-located
• Merge functionality to reduce time, opportunity costs, and logistical overhead
• Grow markets by serving those that don’t or won’t move from activity to activity

Source: World Innovation Forum presentation May 6, 2009