Innovation

Differences

vs.

Mario Herger, PhD@mherger

www.marioherger.at

www.enterprise-gamification.com

A Talk About

17 Differences in Approaching

Innovation and New Ideas

Silicon Valley vs. Europe

17

Elements of Innovation

Innovation involves

①Attitude

②Skills

③Ecosystem

④Money

⑤Process

Attitude1

Naiveté vs. Knowing

NaivitéCreative playfulness and naivité

needs to be present. This opens the

mind and often brings surprising

ideas.

Asking naïve questions

“Why does the apple fall down?”

can lead to new ideas.

1a

KnowingEvery meeting and gathering is a

status meeting. Proposing silly

ideas endangers your status. So

keep quiet.

This often prevents from building

on new ideas, and from doing, as

“past experiences” tell you that

this cannot work.

Creative people tend to be

smart, yet also naive at the

same time.

vs.

Innovation needs Passion

PassionBelieve in their ideas and are

able to make others interested

and engaged.

1b

ReservationDon’t appear too enthusiastic,

as this will be interpreted as

naïve, insincere, or a scheme,

and the innovator as lacking in

intelligence.

If you are not passionate

about your idea, who is?

Teresa M. Amabile; Brilliant but cruel: Perceptions of negative evaluators; Journal of Experimental Social Psychology, March 1983

vs.

Share Your Idea

Share the ideaShare the idea with anyone who

wants to listen. This guarantees

feedback and better understanding

of an idea. It also allows to pivot

faster before wasting too much

time and resources on an idea with

no market and interest.

1c

The NDA trapSomebody can steal your idea!

Better not talk about it to

anyone!

Let everyone sign an NDA before

you share your idea! Or better:

work in secrecy until it’s done.

Ideas are abundant,

execution is scarce!

vs.

Students

CreatingIn Stanford every student either

has a startup, a startup idea, or

wants to work for a startup.

Google or Facebook are already

considered “old economy“

amongst students.

1d

ManagingIn Europe students want security

and work for big companies.

They don’t even have the idea

that they could do a startup.

They are told “Take risks, but be

very, very careful!” (see

interview with EU Neelie Kroes)

US students create Facebook,

European students sue it.

vs.

Facebook sued by law student Max Schrems for privacy violations - http://tinyurl.com/kp72sk4

European Entrepreneurs Must Screw Their Courage To The Sticking Place, Says Neelie Kroes - http://tinyurl.com/on4dw6x

Somebody

MeNo meetup about a topic that I

am interested? Nobody takes on

this injustice or social cause?

Good that there is me who will

take charge and organize!

1e

TheySociety, the state, the

government, the EU, the

Americans should do something!

Why aren’t they doing that? I am

paying taxes so that somebody

can do something, right?

Somebody should do

something or call somebody.

vs.

www.meetup.com

Can vs. Cannot

Finding WaysEverything is possible and

problems will be solved while

we are going.

Yes, and…

1f

Finding ExcusesFirst reactions are that

something cannot be done. A lot

of energy is spent finding

excuses why something cannot

be done.

Yes, but…

Can vs. cannot

mentality.

vs.

Rules

Break the rulesYoutube, AirBnB, Uber, Tesla

break and bend the rules.

The time it takes for regulators

to look at them, often the new

reality shows that the rules

need to be changed.

1g

Follow the rulesBetter safe than sorry and

follow the rules.

Europeans often don’t even

have the idea to question the

rules and forget that rules need

to be reconsidered and can be

changed.

Breaking or following

the rules?

vs.

Making a dent in the universe

Making a dentSV founders are on a mission to

improve the world, to make a

dent in the universe, to build

something larger than man.

That’s why they often do

business in non-traditional ways

and run everyone else over.

1h

Making businessNo larger mission. They call

Americans to be megalomaniacs,

world improvers (and this not in

a positive way).

They just do business like they

have done before.

World improvers!

Megalomaniacs!

vs.

Skills2

Innovation as a Craft

CraftAmericans see Creativity and

Innovation as a craft that can be

learned.

Design Thinking, Multiplication

Method, Task Unification…

Growth Mindset

2a

GeniusEuropeans think that someone needs

to be born as a genius to be creative.

They same is considered true for

movie directors, actors, authors,

comedians…

Fixed Mindset

Creativity is a skill that can

be taught and learned.

vs.

Carol Dweck, Mindset: The New Psychology of Success, Ballantine Books, 2007

vs.

Tell Stories

StoryPeople are hardwired to

understand and remember stories.

Stories encourage empathy, the

understanding of another human

being’s pain and problems.

2b

FactsThe most important thing are

technical details and facts. There is

no need to tell a story, this just

detracts from the awesome

engineering. Don’t forget to go into

every details and bore your audience

to death.

One good story sells better

than thousand great facts.

vs.

Soft Skills

Soft SkillsAmericans have 20 years head

start with pitching. Children have

to present and demo their

favorite toys already in daycare

during sharing days.

Small talk, networking, being

social are all important aspects of

making a startup successful.

2c

Hard SkillsEuropeans think that the idea and

product speak for themselves.

Every VC will certainly just kneel

down thanking the European

entrepreneur for finally solving that

problem. “Take my money!”

Soft skills get little

respect but will make or

break your startup.

vs.

Ecosystem3

Fear & Opportunity

ChancesCreative people take an idea and

build on top of them. They look

for ways to use them better or

find additional uses.

This gives them an opportunity to

find even better ideas.

3a

RisksEuropeans look first for risks,

dangers, and limitations. Is data

privacy, labor laws, harm to body

and mind, my lifestyle etc. an issue?

This attitude prevents them from

playing with the idea.

Opportunity presents itself

only for the prepared

willing to take the risk.

vs.

Network

OpenIn Silicon Valley people connect

you with their own networks. If I

know somebody that could be

useful for you, I’ll get you in

touch with them.

Ultimately, I will profit as well,

because people pay it forward.

3b

ClosedEuropeans keep their networks

closed. They fear that they’ll lose

their contacts and opportunity to the

other person, or that the other

person may not be deemed “worthy”

enough to enter that circle.

I am important, because I have a

network, and I don’t let anyone in.

Pay it forward.

vs.

Why You?

PraisePeople are generally supportive of

you trying to change the world.

They are polite, even if they think

it’s a bad idea. But they will give

you the benefit of believing in you

and telling you so.

Reach for the stars! Go for it!

3c

JustificationToo many people asking these

questions drain a lot of energy.

Instead of talking about ideas and

executing, too much time is wasted

with justifying them.

When you turned your back, they

will talk about you and your crazy

ideas in a dismissive and negative

way.

Is this your task?

Are you even qualified?

Why don’t you get a real job?

vs.

Envy

Hard workPeople who are successful are

seen as lightning rod that one can

learn from.

If they can make it, I can also

make it.

3d

LuckEuropeans think when you succeed,

it is more a sign of somebody’s luck

than hard work. Therefore, you

don’t deserve it.

And they are even happier, when you

failed. Because they told you so.

Praise can be bought.

Envy needs to be earned.

vs.

Facilities

MakeTechShop, co-working spaces,

maker faire, burning man are all

places where people can go, do,

and get their hands dirty.

Many Kickstarter funded projects

get their start at TechShop.

3e

TalkYou talk for such a long time about

what you would do or somebody

should do, if you or they had the

means that by the time you may

have the means you forgot that you

wanted to do something.

Be a maker not a talker!

vs.

www.techshop.ws

Advisors

FoundersThe list of advisors at SV

universities such as Stanford reads

like a Who’s who of successful

founders.

3f

ConsultantsMost consultants from McKinsey,

PwC, BCG - you name it - didn’t

learn entrepreneurship by starting

their own companies. They studied

entrepreneurship from universities

that don’t teach it in the first place.

First hand

vs.

second hand experience.

vs.

Universities

InnovationInnovation = Invention + execution.

With a quick proof that the market

needs it.

There is a high degree of

collaboration between universities

and companies.

3g

Invention & PapersUniversities think they are innovators.

They are not. They are far behind the

trends. Their incentive system is

based on publishing papers. Applied

science is disrespected, collaboration

with companies seen as sellout.

Public institutions still give them lot

of money, because professors, you

know!

The myth of universities

as hotspots of innovation.

vs.

Money4

Angel Investors

Angels & VCsInvestors do not only provide money,

they also connect, coach, and

provide other resources. They are

willing to take risks.

Angels are also former entre-

preneurs, who understand and

empathize with the startups.

4a

GrantsGrants are cheap money handed out

by bureaucrats, who tend to be risk-

averse. Don’t waste tax-payer

money!

Grants come with no other support.

Grants artificially extend a startups

life, when it should have died

earlier.

Angels help startup founders

become angels.

vs.

Austrian Angel Investors Association: Coaching Investors to Become Angels; http://www.aaia.at/

Liquidity

Seed to ExitLiquidity is available in all stages

and in high volumes. This enables

rapid growth and expansion.

4b

Seed to StopAvailable funds are often limited to

early stages, and nearly disappear

completely. The startup’s growth

slows or even stops much earlier.

Wasting energy on finding

tax-loopholes instead of

investing in startups.

vs.

Process5

Iterate & Pivot

Build – Test - BuildThe lean startup approach

requires to prototype and test

with customers rapidly. Quick

feedback lets startups iterate or

pivot on their ideas.

5a

Build – Build – DamnThe engineering driven culture of

Europe makes startups believe that

they know best what the customers

want without actually talking to

them. Spending months on building a

product before finally testing it

often leads to unpleasant surprises.

Not the customer is too

stupid to “get it,”

it’s the startup founders.

vs.

First Adopters

First AdoptersFirst adopters are willing to spend

money and provide crucial

feedback. This gives startups much

needed cash flow, ensures investors

that there is a market for the

product/service, and provides

feedback for product improve-

ments. First adopters are also

advocates for the product/service.

5b

Lets WaitLets rather wait until the product is

perfect. We all know that first

versions are full of flaws.

First adopters are willing

to risk the pain and look

stupid.

vs.

Business Speed

Next weekSpeed of closing deals and signing

contracts is counted in days or

weeks.

5c

Next year!Months and years go by before deals

are closed. In the meantime a

startup will run out of cash. Of

course this confirms the suspicion of

the customer that making a contract

with a startup is too risky.

Tuesday is not good.

How about never?

Is never good?

vs.

Failure

LearnedYou failed? What did you learn?

Failure is a natural part of learning.

If you learn from it, you will not

make the same mistake again and

can teach others.

That’s why I trust you. Now try

again!

9 out of 10 startups will fail!

5d

FailedWhen you fail, you must be the

biggest loser and should be punished

forever. Never trust a person who

failed.

Officials think that by planning

properly and with help 9 out of 10

startups must succeed!

If you’ve never failed, you

didn’t take enough risks.

vs.

Patents

Maybe laterThere may be a patent in it, but

why waste time when we don’t yet

know if this works and if the

market needs it?

5e

First file a patentLet’s minimize the risk that

somebody steals the idea and focus

on patenting it. Then we do business

development and talk to customers.

We need to get the patent through,

before we can tell you more. We’ll

come back to you in a few months.

The patenting frenzy.

vs.

I write about many

things, including

innovation and

gamification:

Enterprise Gamification

Engaging people by

letting them have fun

Print: http://amzn.com/1470000644

PDF: https://gum.co/V01Gamification

My Book

Available on (Print) or as

More of My Books

Keep Innovating!

Enterprise Gamification Consultinghttp://enterprise-gamification.com/

Silicon Valley Inspiration Tourshttp://www.siliconvalleyinspirationtours.com/

Parenting with Gamificationhttps://www.udemy.com/parenting-with-gamification-

raising-empowered-children/

Some stuff that I do:

Mario Herger, PhDGamification & Innovation Expert, Author

Entrepreneur, Speaker.

http://www.marioherger.at/

mario.herger@gmail.com

@mherger

www.linkedin.com/in/marioherger/