How to incubate innovation–Christian Catalini

MIT Sloan Professor Christian Catalini

MIT Sloan Professor Christian Catalini

From MIT SMR Custom Studio

The first thing an organization can do to nurture innovation is to tap into its own human capital. At a high level, all organizations care about ideas, and more often than not, in corporate settings, people already have ideas. Staff have expertise, know the customers, and throughout the organization they can interface with interesting sources of data and information.  It’s just that their day-to-day requirements do not allow them to execute. Slack time can be an important lever for incubating creativity and a meaningful way for executing ideas employees have had in mind for some time.

But if you ask employees to be entrepreneurial, it’s not same – they may end up directing their own unit, but not building and scaling a multi-billion dollar start-up. It’s hard when you have the safety and surroundings of a large organization to act like entrepreneurs who have to attract capital from outside. The challenge is once you identify talent and the ideas inside to incentivize to execute an experiment as though it were a start-up. Perhaps the biggest organizational change is to think like a small start-up.

From an organizational perspective, firms can learn a great deal from university accelerators. At MIT, we have Global Founders’ Skill Accelerator, where we get students with good ideas to scale businesses. The interesting thing is that students who have no experience of entrepreneurship get feedback and advice from a set of seasoned entrepreneurs. Similarly, an enterprise may have skills and expertise on the tech side, but no track record of taking an idea and scaling it to a multi-billion project. The challenge is how to recruit entrepreneurs to train employees with the good ideas to take them to the next level.

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The democracy of data: how Venezuelans can stand up to government lies – Alberto Cavallo

MIT Sloan Assoc. Prof. Alberto Cavallo

From infobae

Venezuela, once one of Latin America’s wealthiest countries, appears to be teetering on the brink of collapse. Its economy is shrinking. Food is in short supply. Its currency—the bolivar—is virtually worthless, and inflation appears to be out of control. But, in light of the fact that the country’s Central Bank stopped publishing inflation data in December 2015, no one has an accurate picture of just how dire the situation is.

This dearth of inflation data may seem like an academic problem, but in actual fact, economic indicators are no small things. Without official statistics, it’s impossible to draw accurate conclusions about the wellbeing of the Venezuelan people. The lack of data has consequences on a micro level, too. The inflation rate, for instance, is a vital number for anyone who wants to negotiate a wage, decide on an affordable rent, or make any savings or financial plans for the future.

With a government intent on suppressing important information, many Venezuelans are angry. As a native from Argentina —another Latin American country that lied about inflation in the past—I feel their pain. As an economist, I urge them to fuel their frustration into action.

Earlier this year, my colleagues and I started a project to measure inflation in Venezuela using a new and highly effective technique: crowdsourcing with mobile phones. My team developed a special app for android phones that allows people in the country to report the prices of everyday products and services. We then aggregate the data to estimate the level of inflation. Over the past five months, we have collected more than 3,000 observations from 1,000 products in 10 cities around the country.

Our data indicates that Venezuela’s inflation rate is about 25% on a monthly basis, which represents one of highest rates in the world.

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Scaling customer development: crowdsourcing the research – Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

From The Huffington Post

In the seminal book “The Four Steps to the Epiphany”, Steve Blank introduces the concept of “customer development” – get out of the building and interview customers. While this is not a new concept – product people with user-centered design training have always done this – this is a huge development in startup-land, where technology used to run amuck.

Challenges with sample size

There is one small problem with customer development. It relies on qualitative research techniques like detailed interviews and observation, which are time consuming and costly.  Additionally, these techniques involve deep interactions with a few individuals, and you always run the risk of talking to the wrong people about the wrong problems.

How do you know whether you can trust your results? One way is to increase sample size – but given each interaction can take a couple of hours all-in, trying to get to 100 conversations quickly becomes daunting.

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Andrew McAfee and Erik Brynjolfsson discuss their new book, “Machine, Platform, Crowd: Harnessing our Digital Future” June 26, 2017

Erik Brynjolfsson and Andrew McAfee

MIT Sloan’s Erik Brynjolfsson and Andrew McAfee

 

Our latest installment of the MIT Sloan Expert Series includes a live conversation with Andrew McAfee ​and ​Erik Brynjolfsson, co-authors of the new book Machine, Platform, Crowd: Harnessing our Digital Future, which is being hailed as “a must-read road map” for success in the digital economy. The book is a sequel to their bestseller The Second Machine Age.

Harnessing our Digital Future: Machine, Platform Crowd

Beth Comstock, Vice Chair of GE, appears​ on the program to discuss how the company harnesses the wisdom of the crowd for product ​innovations and design.

Sandy Pentland, MIT Professor of Media Arts and Science, also joins us to talk about managerial best practices for navigating this new world of rapidly advancing technology.

 

How millions of people can help solve climate change — Thomas W. Malone, Robert Laubacher and Laur Fisher

Image credit: PBS

Image credit: PBS

From PBS NOVA Next

If there ever was a problem that’s hard to solve, it’s climate change. It’s a complex challenge requiring more expertise than any one person can possess—in-depth knowledge of the physics of the upper atmosphere, a firm grasp on the economics of technological innovation, and a thorough understanding of the psychology of human behavior change. What’s more, top-down approaches that have been tried for decades—like efforts to pass national legislation and to negotiate international agreements—while important, haven’t yet produced the kind of change scientists say is needed to avert climate change’s potential consequences.

But there’s at least one reason for optimism. We now have a new—and potentially more effective—way of solving complex global challenges: online crowdsourcing.

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