Keep The Suits Out Of Innovation

E.F. (Fritz) Schumacher’s award winning collection of essays, first released in 1973, was entitled “Small is beautiful: a study of economics as if people mattered”.

Schumacher espoused the appropriateness of technology to provide solutions to particular situations. This was at odds with the emergent thinking of the time, which very much centred on “bigger is better.”

That got me thinking. So where are we now? Nearly four decades since “Small is beautiful” appeared, what has happened with technological development, especially relating to sustainability?

Well, we have seen some moves towards a more ‘responsible’ way of operating. The introduction of the ‘triple bottom line’ looking at performance in areas that benefit people and the planet, rather than just financial profit. A recognition also that innovation happens in smaller teams, and is achieved by navigating that fine line between order and chaos.

Innovation without the suits

The technology space is littered with examples of ‘suit-free’ innovation. Way back in 1984 Ray Ozzie was funded by Mitch Kapour, the then head of Lotus Development to set up Iris Associates. The combination of Kapour’s business acumen and insight, coupled with Ozzie’s brilliance led to the development of Lotus Notes. Kapour wore Hawaii shirts and juggled in staff meetings. Definitely a suit-free environment.

But how do suits limit innovation? Picture the scene. An office in a large corporate building. A group of eight or ten (typically men) of around the same age, with similar educational backgrounds, dressed the same, who have similar hobbies, homes, families, experiences, and outlooks, are asked to ‘innovate.’ You can imagine the result.

Three UK examples of small, suit free innovators include:

• London-based AMEE, (Avoiding Mass Extinction Engine), was founded and run by former astrophysicist Gavin Starks. With a small team of software engineers and scientists, AMEE aggregates all the emissions data and methodologies on Earth and delivers it via a web-based platform. This allows companies, governments and consumers to calculate their carbon footprint, and model energy consumption.

• Also London-based are Moixa Energy Solutions, founded by Simon Daniel. Ably assisted by his Design Director Chris Wright, Moixa is another example of small, suit-free innovation. Moixa are creators of the USBcell, an AA battery that can be re-charged via a computer’s USB port. A more exciting development is a Home Energy System. This monitors energy consumption and provides advice and controls via realtime web or smartphone applications. The server also acts to manage renewable resources such as Solar PV panels. It can run all your DC devices, such as laptops, phones, and even low-power lighting, such as L.E.D.’s.

• Peter Hopton is the Chief Executive of VeryPC, A Sheffield-based innovator of low-energy desktop computers, servers and storage. Hopton is both technically brilliant and possesses great business acumen. The combination of the two has seen the steady rise of his business. To be fair, Peter does wear a suit, although he doesn’t think like he is.

Investing in R&D

So how does ‘shareholder value’ impact innovation? It is refreshing to see Hewlett Packard (HP), under the new leadership of Leo Apotheker investing again in R&D. HP – so long the company with the ‘invent’ tagline – saw what some described as a “decade long slide” away from R&D.

Under the leadership of its previous CEO Mark Hurd, HP focused heavily on financial performance at the expense of the other two aspects of the triple bottom line, stunting innovation and undermining the company’s respected position in the industry. Senior executives may now be able to re-engage in “civic” (external community) activities, a role forbidden to them by Hurd.

It will be interesting to see what Hurd, now at Oracle, will do with regard to R&D. Oracle has acquired over sixty companies in the last four years – taking an acquire, rather than innovate approach. Innovation is the heart beat that drives technology companies. What happens to innovation when most, or all the innovators leave?

IBM, GE and Siemens are good examples of large companies that (mostly) get innovation right. Allowing small teams to work on projects and share outputs from one group that could act as a beneficial input to another. A bit like ‘in-house’ industrial symbiosis.

I’m a big fan of nature as our guide, and the exciting field of ‘biomimicry’. The world of “big is better” IT creates monocultures. Nature is not a monoculture, diversity breeds resistance, through innovation. While big IT systems may be open at the technical level, customers are encouraged to ‘one stop shop.’ Monocultures equal ‘lock in’, which equals revenue.

So in my opinion, based on experience, keep suits out of innovation, engage shareholders in the value of innovation and keep it small, until it can scale.

Jim Craig writes a blog called greengauges which can be found here.