ethnographic opportunity analysis fl15 part 1(mullooly)

Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 1 part 1 (Fall 2015) 10/12/15(Fall 2015) 10/12/15

James MulloolyJames Mulloolyaka aka ““TheAnthroGeekTheAnthroGeek”” @ @

www.TheAnthroGeek.comwww.TheAnthroGeek.com

What about knowing matters most to you?

Do you want to know what everyone knows or what none of us know?

Which matters:–Knowledge or Ignorance

If we compare knowledge to matter than why are we fixated on the smallest fraction of reality? –Ordinary matter 5% –dark matter & energy 95%.

Astronomers theorize that the faster expansion rate is due to a mysterious dark force that is pushing galaxies apart.

Astronomers theorize that the faster expansion rate is due to a

mysterious dark force that is pushing galaxies apart.

Astronomers theorize that the faster expansion rate is due to a mysterious dark force that is pushing galaxies apart.

Courage, cleverness, innovation

Consider the most innovative

product or process you can think of

Innovation

?Innovation is not the product of logical thought, even though the final product is tied to a logical structure - Albert Einstein

Magdalenian bone sewing needlesfrom Gourdan Cave, France

Innovation

Innovation in Business Innovation in Business (Schumpeter, (Schumpeter, 1934)1934)

1. Introduction of a 1. Introduction of a new/improved new/improved goodgood

2. Introduction of a 2. Introduction of a new methodnew method of of productionproduction

3. Opening 3. Opening new market or new market or territory territory 4. Conquest of a 4. Conquest of a new sourcenew source of raw of raw

materialsmaterials 5. New type 5. New type of organizationof organization

1. Introduction of a 1. Introduction of a new/improved new/improved goodgoodSweet Chocolate

2. Introduction 2. Introduction of a of a new methodnew method of productionof production

Henry Ford’s Assembly Line

3. Opening 3. Opening newnew market or market or territory territory

Sushi in US

4. Conquest of a 4. Conquest of a new new sourcesource of raw materials of raw materials

Sugar Beets in 1870s

5. New type 5. New type of organizationof organization

Japanese Automotive

Administration

1. Introduction of a 1. Introduction of a new/improved new/improved goodgoodSweet Chocolate

Introduction of a Introduction of a new/improved goodnew/improved good

Steve JobsSteve JobsMaster of

Innovation as improvement of an existing

How How Personal Personal

ComputerComputers were s were UsedUsed

(1984)(1984)

How Music How Music devices devices

were Usedwere Used(2001)(2001)

How Smart How Smart Phones Phones

How Tablet How Tablet Computers Computers

How How Watches Watches are Usedare Used((NOWNOW))

BUTBUTApple is a Apple is a Software Software Company Company

(Steve Jobs)(Steve Jobs)

Apple is a Software Company Apple is a Software Company ((JobsJobs))

The Macintosh Interface

Apple is a Software Company (Jobs)

The Ipod’s Itunes Store

The Iphone’s App Store

The Ipad’s App Store

The Watch’s ????????

How can you find these opportunities?

Through

Induction

What is Induction?What is Induction? Deductive ApproachesDeductive Approaches

– Hypothesis Hypothesis Data Collection Data Collection AnalysisAnalysis

from general to specific from general to specific Inductive ApproachesInductive Approaches

– Data Collection Data Collection Analysis Analysis HypothesisHypothesis

from specific to generalfrom specific to general

What is What is Induction?Induction?

A generalization is the conceptualization of cause and effect; i.e., inducting may be described as measurement omission applied to causal connections.FROM: The Logical Leap: Induction in Physics, By David Harriman

What is Induction?What is Induction?

Inspirational

Induction

Feel that “ah ha”momentwhen you

see somethingunexpecte

Induction

Inspirational Analytical

Inspirational Induction Analytic Induction

Work Workaround

Engineer Reverse Engineer

"The ability to observe consumers in context, without preconceptions, and then deliver a market-worthy innovation." -Hank DelcoreConcise (i.e. biz-friendly) definition of "analytic induction"?

I will nowApply this

Theory

QUESTION: What do you do with dirty clothes?

CASE 1: Dirty

Laundry

Proctor & Proctor & GambleGamble ObservedObserved People doing People doing

laundrylaundry

CASE 2: Global

MarketsQUESTION:How can you compete?

ObservedObserved

Indians Indians outsideoutside

Americans in Americans in bathrooms (running bathrooms (running water)water)

US concern: a close shave more blades;Indian concern: clean blades, not cutting themselves.

Found 1Found 1

Found 2Found 2HEADLINE:

“Gillette's Latest Innovation in Razors: the 11-Cent Blade”For its part, P&G has doubled the

percentage of its roughly $20 billion in annual revenue coming from emerging markets since 2000 to about 40 percent (October 2013).

All of these cases illustrate one overarching observation:

What People What People Say They DoSay They Do

and What They and What They DoDo are are DifferentDifferent

The Business Case for The Business Case for User-Driven InnovationUser-Driven Innovation Unprecedented Unprecedented

specialization and specialization and segmentationsegmentation, , multiplied many times multiplied many times over by domestic and over by domestic and international cultural international cultural diversity.diversity.

The Value of the The Value of the Use Use CaseCase Entrepreneurs cannot Entrepreneurs cannot

assume they are socially assume they are socially or culturally close to or culturally close to users and they cannot users and they cannot keep up with consumer keep up with consumer trends trends unless they seek unless they seek user-centered insights.user-centered insights.

Democratization of Democratization of Knowledge Knowledge 11

Driven by the internet Driven by the internet and information and information technology in generaltechnology in general

Armed with lots of information and the ability Armed with lots of information and the ability to buy from companies all over the globe, to buy from companies all over the globe, consumers no longer consider consumers no longer consider the the price/quality trade-offprice/quality trade-off as the sole driver of as the sole driver of choice.choice.

Democratization of Democratization of Knowledge Knowledge 22 Consumers increasingly Consumers increasingly

consider how a company consider how a company and its products match and its products match their own personal valuestheir own personal values, , behaviors and needs.behaviors and needs.

To get at this, To get at this, successful companies successful companies must include users must include users in the innovation in the innovation processprocess..

Traditional R&D Traditional R&D departments and departments and entrepreneurs with entrepreneurs with their own views on their own views on ““what people wantwhat people want”” can no longer keep can no longer keep up up with the reality with the reality of rapidly evolving of rapidly evolving needs and desires.needs and desires.

Just to Stay SolventJust to Stay Solvent As Squires and Byrne put it: As Squires and Byrne put it: ““……

companies have to manufacture the right companies have to manufacture the right commodities and deliver them in the commodities and deliver them in the right way to the right consumers at least right way to the right consumers at least four out of ten times every year – just to four out of ten times every year – just to stay solventstay solvent”” (Squires and Byrne (Squires and Byrne 2002:xiv). 2002:xiv).

YOU will now Apply this Knowledge:Your Assignment:

“ethnographic opportunity analysis fieldwork”

Anthropologists Entrepreneurs Application

Trained to think holistically

Intuitively holistic Visionary, iconoclastic

Evolutionary approach

Forward looking Know future demands

Seek insider perspective

Intuitively knows consumers’ wants

Know when something will be of value

Trained to be Inductive

Intuitively Inductive Keen observers, see opportunities

We are not that different

If I have ever made any valuable discoveries, it has been owing more to patient attention, than any other talent.

Isaac Newton: (1642-1727)

THE ASSIGNMENT: Pay AttentionTHE ASSIGNMENT: Pay Attention

Where Observation is Concerned, chance favors the prepared mind. -Louis Pasteur (1882-1895)

THE ASSIGNMENT: THE ASSIGNMENT: Preparation

THE ASSIGNMENTTHE ASSIGNMENT 1) Conduct some sort of 1) Conduct some sort of

““inductive observationinductive observation””, , 2) analyze your notes, then 2) analyze your notes, then 3) expand those notes into a brief 3) expand those notes into a brief

report about what you found.report about what you found.

DESCRIPTIONDESCRIPTION– Rather than looking into a Rather than looking into a

completely innovative idea (service completely innovative idea (service or product), the goal is to or product), the goal is to 1) observe 1) observe something that already works; 2) something that already works; 2) observe it in great detail; then 3) observe it in great detail; then 3) begin to understand begin to understand it in such detail it in such detail that you can that you can 4) make concrete 4) make concrete suggestionssuggestions about improving it. about improving it.

In Other Words In Other Words (not your pet (not your pet idea)idea)– Rather than looking for how Rather than looking for how

consumers COULD use a NEW consumers COULD use a NEW service/product, the goal is to service/product, the goal is to observe how consumers DO use a observe how consumers DO use a EXISTING service/productEXISTING service/product with the with the intention of intention of looking for opportunitieslooking for opportunities to improve or to improve or ““add valueadd value”” to that to that experience.experience.

StepsSteps– 1. Find a routine, taken-for-granted 1. Find a routine, taken-for-granted

task/service/product,task/service/product,– 2. 2. ““Hang outHang out”” and and ““thickly describethickly describe”” it in a it in a

notebook, notebook, – 3. 3. In a 2-3 page pitchIn a 2-3 page pitch, suggest some sort of , suggest some sort of

innovation that will add value. DUE: innovation that will add value. DUE: Wednesday Oct 16rd by 3:00pm in class. Wednesday Oct 16rd by 3:00pm in class. Email to Eric.Email to Eric.

– The best observations will be published on The best observations will be published on our blog and presented in class on the our blog and presented in class on the Wednesday after that.Wednesday after that.

This will be your Assignment 4.This will be your Assignment 4. Email it directly to Tim and AshwinEmail it directly to Tim and Ashwin Part I - 10/12/15Part I - 10/12/15Due Date 10/21/15Due Date 10/21/15 Part II - 10/28/15Part II - 10/28/15

Send questions to Prof. Mullooly at Send questions to Prof. Mullooly at Jmullooly@csufresno.eduJmullooly@csufresno.edu

Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 1part 1

Thanks for your Time

Ethnographic Ethnographic Opportunity Analysis Opportunity Analysis part 2part 2

Two Brothers and a Woman

Epimetheus, foolish; Prometheus, clever.

Epimetheus ("hindsight”)

Prometheus ("foresight”)