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"How to Not Kill the Next
Big Idea!"
By Jonathan Vehar
"Get that toy out
of my office!"
-- An irate banker telling Thomas Edison to take his invention, the phonograph,
someplace else.
"Genius is 1% inspiration, 99% perspiration."
-- Thomas Edison
Sometimes creating brilliant new ideas is easy. It's trying to convince
other people of the brilliance of an idea that's difficult. There's your
99% right there. And the worst part of it is that many times we're on the
other end of the 99%.
A CRAZY IDEA CALLED "XEROGRAPHY"
How many documents did you touch today that have been photocopied? In business
today the photocopier is a business necessity, and it's been a staple of
the business world for several decades now. However, in the late 30's, Chester
Carlson tried to sell his idea of "xerography" to the big technology
companies like IBM and Kodak. They rejected his idea.
But you know how the story ends. After $75 million dollars in research,
in 1960 a little known company called Haloid-Xerox (now Xerox) unveiled
the first $29,500 Xerox copier with a $95/month lease that included 2,000
free copies (four cents for each additional copy), plus guaranteed maintenance
of the temperamental copiers. It was an overnight success 25 years in the
making.
A home-run hit that everyone believed in during development? No, not even
the development group believed in it. "Various members of our own group
would come in and tell me that the damn thing would never work," said
John Dessauer, head of the Haloid-Xerox R&D division. Such a limited
amount of faith for a product that would eventually become a business staple
and turn into a $15 billion business for the company. So what can we learn?
Just this: don't kill new ideas before you fairly consider them.
HOW TO JUDGE IDEAS AFFIRMATIVELY?
One way to do that is by using a technique called the PPCO. The PPCO is
a technique that looks at each idea strategically, affirmatively, and deliberately
by assessing the following:
- Pluses: What are (at least) three things you like about the idea?
- Potentials: What are (at least) three good things that might result
if the idea were implemented?
- Concerns: What are some concerns you have about the idea (phrased
as a question starting with "How to..." or "How might...")
- Overcome the concerns: What are some ideas you have for how to fix
the concerns you just noted?
Imagine you were in charge of doling out venture capital in the late 30's
and some garage-engineer-crackpot named Carlson approached you with his
pioneer technology to replace the mimeograph machine. You might use the
PPCO this way:
- Pluses:
It's unique. I've never seen anything like it before. And it seems like
it would be much cleaner that the mimeograph machine with all that carbon
paper and ink. Also, I like that you've proven that the concept does
work.
- Potentials:
It might be the first product like it on the market, and we'll gain
huge market share. And it might lead to a whole new profit center for
your company. It might also be possible to expand this worldwide and
pay off the development costs even faster.
- Concerns:
How to get your employees to have a stake in the development of this
extremely complex technology. And how might you create awareness of
your new idea so that people can see how revolutionary it is. Also,
it looks like it might be expensive, so how might you price it in a
way that businesses can afford one of your copiers?
- Overcoming the concerns:
As you know, the first and third concerns were overcome with stock options
and leasing respectively. To address the second concern and create awareness
of the idea, Xerox used innovative promotional strategies including
doing demonstrations of the machine in New York's Grand Central Terminal.
WHAT DO NEW IDEAS LOOK LIKE?
New ideas look strange. They seem impractical. They make us feel uncomfortable,
and they change the status quo. But they also unleash $15 billion dollar
industries. And the way to make sure that we're part of that success is
to avoid prematurely killing ideas and instead judge them fairly and deliberately.
With the PPCO.
(c) 1999, New & Improved. http://www.innovativebrains.com.
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