I fear this will not be a popular blog post, for two reasons: one it’s too long and two it raises some inconvenient truths as we consider how to drive more innovation in our organisations. I am however on a sabbatical reading and thinking hard about these things… Experience is what you get when you didn’t get what you wanted.
Beginning with Alexander Graham Bell’s invention (and monopoly making patent) of the telephone it’s hard to point to a group outside Bell Labs that have been more responsible for shaping our society today (granting that the Xerox PARC Labs took the torch and ran with it as the flame at Bell started to die out in the 70s) we’re talking about the group of humans that invented telephone, valves, electrical cables of all kinds, radar, the transistor, microwave, the unix operating system, lasers, optical fibers, CCD chips and celluar mobile networks and on and on.
Curious isn’t it – a telephone company and a photocopier maker have defined the information age. Also interesting is that Bell Labs perhaps even more so than the PARC group at Xerox were very keen to understand how to measure and turn innovation into a process. Sound familiar?
“Of its output, inventions are a valuable part, but invention is not to be scheduled nor coerced”; experimentation was to provide an environment for “the operation of genius” – Harold Arnold, the first leader of the new R&D group talking about his team.
By taking a long-term, first-principles, research-based approach to innovation the Bell Labs did indeed discover, invent and innovate nearly all the fundamental building blocks we now take for granted as routine technologies driving the information age. There were a number of distinctive and consistent elements of the Bell Labs system:
1) The distinction between theorists and experimentalists. The most effective research groups combined both skill-sets, and they rarely sat with one individual.
2) Co-located and cross-functional teams. Kelly (the bloke in charge) was combining chemists, physicists, metallurgists, engineers, theoreticians and experimentalists. The leaders of these new structures were unconventional too: younger, bolder; not just the longest serving or more ‘senior’ member of the group.
3) There were no closed doors. Total transparency was expected, as was a willingness to help a colleague if required, no matter your level.
4) Progress was made by groups, not individuals. There were of course a few brilliant minds across nearly a century but like most good stories, a few heroes take the credit for a large group of people working effectively together.
5) Two principles…
i) If you haven’t manufactured the new thing in substantial quantities, you have not innovated.
ii) If you haven’t found a market to sell the product, you have not innovated.
The term ‘innovation’ dates back to the sixteenth century in England. It described the introduction of a new idea relating typically to philosophy or religion. By the mid-20th century we begin to see the words innovate and innovation applied to technology and industry.
If an idea leads to discovery, and if discovery leads to invention, then an innovation is the lengthy transformation of an idea into a product (or process) suitable for widespread practical use. Almost by definition, a single person, or even a single group, cannot alone create an innovation.
The early days of any innovation are typically underwhelming, even demoralising. The first valves were very difficult to make, not durable and not always reliable. The first transistors (a device we take for granted in their many millions in all our every day electronic devices) were very difficult to make, not durable and not always reliable.
Even the lawyers at Bell were trying to ‘quantify’ or find the patterns in their innovations. They only found one consistent pattern – their staff with the most patents (signed over on day one for a crisp $1) had breakfast or lunch with Harry Nyquist. Harry wasn’t the source of specific ideas; it turns out he was just really good at asking good questions.
Let’s also consider for a moment the non linear nature of invention. Shannon, an employee of Bell Labs who wrote “A Mathematical Theory of Communication,” (better described by Scientific American as ‘the magna carta of the information age’), went on to study chess-playing computers in 1949 (before computers were invented): a fairly frivolous pursuit for a telephone company. In his own words: ‘what if we might create machines capable of logical deduction?’
Back to their process. Broadly, the ‘system’ at Bell was divided up like this. 1) Research. Scientists and engineers creating a reservoir of completely new knowledge, principles and materials, methods and art.
2) Systems engineering. Using the new knowledge to look at how to integrate the possible, plausible, necessary and economical ideas.
3) Manufacture. Engineers developed and designed new switches, transmission system and so on from groups 1 and 2.
The handoffs between the three departments, however, were often (intentionally) quite casual – part of what made the labs ‘a living organism’. Physical proximity was everything; people had to be near one an other. Phone calls alone wouldn’t do.
A system carefully curated
As much fun (and cultural benefit) as there is in a hack day, it can’t be your innovation strategy. Also, innovation doesn’t best happen in a secret lab (unless that lab has ALL the people required for the whole end to end – perhaps Apple or Lockheed Martin). There does need to be a critical mass of talent; very very rarely do big innovations come from a single individual. Sometimes a revolutionary idea, yes, but not ultimately delivered as an innovation.
We’ve written about this before: too often we are focused on iterative improvement, not innovation. I’m reminded of my favourite quote:
“The problems of the world cannot possibly be solved by skeptics or cynics whose horizons are limited by obvious realities. We need [people] who can dream of things that never were.”
– John F Kennedy
Full credit to Jon Gertner’s ‘The Idea Factory’ for an insightful history of Bell Labs.
for the customer.
So imagine my surprise, when dropping into 
out Mr 10 to the girl behind the counter. “Really? My brother is so into Call of Duty – he’ll love that one”. Minifigure #3, the uncool, pyjama-clad kid with the teddy bear just went from ‘can’t shift’ to ‘can’t keep in stock’.
The DPQ was our effort to explain the massive disruption suffered when technology starts to influence customers and business, in particular media and publishing businesses. It has survived many conferences, discussions and debates, but now we’re delighted a graduate student at RMIT has picked it up and will put it to the test for his Master’s thesis.
Matty Soccio
As some would know, I recently dived back into the seething biomass known as Facebook. I’d abandoned the service (committing ‘Facebookicide’) in 2008, after being stalked by one too many lesbians from Queensland to be their latest collected trophy-friend (me, a trophy?).
AOL (1983): the first major money making walled garden on the internet in the English speaking world, founded on online games and communities (including popularising chat on the internet with ICQ), rising to 30m users over the next 20 years then famously blowing it all in a merger with Time Warner in 2001. Who could forget the rain-storm of direct marketed CD-ROMs that came in fancy tins and packages tempting you onto their network? And once you were in, they had you under their control. Most AOL users right through the 1990s thought AOL was the internet, holus-bolus.
The actual Internet (1988): the year the military and the commercial networkers joined up, including emerging private sector networks Compuserve, UUNet, PSINet, CERFNET, and Usenet. Still a bunch of list servers, technical people and a minimum number of tools to connect people without IT degrees or an interest in ham radio.
World Wide Web (1991): with the term coined by CERN’s Tim Berners-Lee, this was a layer on top of the internet that enabled sharing of resources beyond the list and text heavy document and email platform. It was classicly ‘open’ – anarchic in some ways with the emphasis on interconnection to make the world a better place through sharing.
MSN (1995): Microsoft famously ‘got the web’ in the mid-90s, and MSN was their attempt at a walled garden, which basically proved they did not get the web at all. Their ongoing efforts to keep people within their domain included Hotmail, Messenger, MSN Explorer, and to some extent Internet Explorer as a non-standard browser. MSN has around 10m members today (note: fact to be checked), and has morphed into Windows Live as Microsoft’s attempt to stay relevant to a generation of users that prefer to Google, Twitter and Facebook.
(c2008): 3G wireless in wide supply and a new generation of intelligent phone handsets once again changed the nature of the internet, initially slowing some things down but causing simplification and refocus about what it meant to be connected 24 x 7 x 365. Without doubt the earlier incarnations of the wireless web contributed to the acceleration of internet users to an estimated 1.6b in 2009.
(September 2006): starting small and purposeful, this College white pages site has emerged as a global player, with enough functionality and interconnectivity to keep an ‘internet’ user within it’s 4 walls for hours a day. On its way to a self-professed 1 billion members by 2012, it already has 400m members across the world and 200m highly active contributors. <editor’s note: today’s claim a year later is 750m members>
