Over the next 11 years every household in Britain will receive Smart Meters, one for gas and one for electricity. This project will be one of the largest infrastructure projects to have taken place since the Second World War.

So says NPower.

I’m going to get a Smart Meter? Whoppeeedo!

Whilst the idea is compelling to the companies themselves, I don’t see them answering the question “so what” in a particularly compelling way.  They try, talking about “providing you with much more information on your energy consumption allowing you to be more fuel efficient and save money”, but really. So what?

(This calls to mind a quote from Jurassic Park where the Jeff Goldblum character says “Yeah, but your scientists were so preoccupied with whether or not they could, they didn’t stop to think if they should”.)

Just because I can control my boiler from my iPhone when I am away from home…. well why should I? What is the point? What is the customer need that smart meters are fulfilling?

That is not to write off smart meters. But what else could they do? What new business models could they inspire?

How about introducing gamification to the way people monitor their energy consumption.  What if the customer could win recognition as being the most energy efficient in their street?  What if gamification could be used as a reward for more energy efficient behaviour?  What if it enabled people to trade their energy usage within their social network?

Lot’s of big ideas but I don’t hold my breath so see anything innovative coming to market anytime soon. Marketing departments may dream of such things but I don’t see them gaining traction when IT are tasked with rolling out functional requirements for mundane, pedestrian and unimaginative use cases.

Yet might there be a different way?

Dear Energy Provider. What if you carve out a niche within the larger smart meter project to build a test and learn capability? A capability that can rapidly develop ideas and take them to market as experiments, product betas. A place where technology is less of a concern than the idea. Many of the usual non-functional requirements can take a back seat as you take the concept to consumers. a place where the idea has to prove itself cheaply for real, or fail fast.

An interesting aside, the way that Mumsnet have developed a community site that attracts 25k per day:

Essentially, we started with a blank piece of paper, viewing ourselves as a platform provider, with the understanding the site had to be developed in collaboration with mumsnetters at every stage.

The most important factor has been letting the community direct progress and listening to what they want – almost all innovations, new site and product developments at Mumsnet are derived from members suggestions.

This happens on a day-to-day basis: we view the site as an ongoing beta or focus group. Most recently this has led to our ‘Off the Beaten Track’ section, covering sensitive issues which which users’ requested not to be indexed by Google. Their feedback and suggestions have also been instrumental to the design of our soon-to-launch mobile app.

What if, instead of rolling out Smart Meters to customers and extolling the virtues of how good the pedestrian things they do are, what if the energy providers derived new product innovations based on the smart meter technology through their customer suggestions.

And thinking more radically, what if they unlocked their data that the smart meters provide and let the community develop innovations (as with the UK government’s Open Data initiative).  There’s lots of new business models, new ways of working. But again, I don’t hold my breath for anything inspiring anytime soon.

I ended the presentation with the below takeaway slide that is worth replaying here.  I believe that product owners need to start thinking more like entrepreneurs and their seedling product ideas more like start ups.

Think big: Start with a big picture, a vision, where you want to get to. This should be unconstrained thinking, divergent thinking before converging on the specifics.

Start small: Easier said than done, but this is the getting to a minimum viable product.

Fail fast: Get stuff to market quickly, test with your consumers and be ready to fail. If you fail early you fail cheaply. Realise that you have customers, users who are already passionate advocates of your brand. Take them on the journey of development with you. You not assume that everything you need to take to your customers must be polished and perfect. Don’t underestimate the positivity than can be accrued by engaging users in the development process

Grow success: Do not see the end of the project as the end of road. Getting to a first release is only the first step. Successful product owners will be engaged in a virtuous cycle of continuous design and continuous delivery. They can come up with an idea, a new feature and get it in to production in hours, or days rather than months.

So we are uncomfortable at letting others into our personal creative process. Now take this to the organisation, to the enterprise and creative genocide is abound. Like the Head of Digital who had 130 different stakeholders to socialise the Organisation’s new website designs with. Enter the HiPPO. The Highest Paid Person’s Point Of view. And with a few of those on board you get design by committee and design mediocrity. Or the client who refuses to engage with customers or end users in the early stages of the design process in fear of what they might think. A fear of setting expectations, a fear that their competitors might see what they are up to. Killing their creativity with fear.

Letting go is the hardest thing. But it can also pay great rewards.

On 27th October people coming out of arrivals at Heathrow airport were greeted by singers and dancers and general merriment. As an ad campaign for T-Mobile by Saatchi & Saatchi it was inspired, creative but not without risk. All the members of the public filmed had to sign a release form, agreeing to their being used in the ad. What if they didn’t? But they did. Whilst meticulously planned, the success of the ad is in the general public. T-Mobile got over any fear they may have had of the unknown and let go of the product to let the crowd create. It’s an uplifting piece, and successful too; their youTube page has had over 5.5 million views. And to the bottom line? The ad saw a 12% rise in sales the week after airing.

Imagine it is 2007, there is no Apple, you are a new entrant developing a product that will go head to head with Nokia’s flagship phone the N95. You are the product manager who is responsible for the success of the product. You are focused upon beating Nokia; you’ve made it your business to intimately know the N95, you can recite the list of features it has from memory. You have a meeting with your design team and they break the news. They tell you the spec they have come up with.

“Let me get this straight” you say. “You are telling me that the phone you are proposing we take to market will have no Card slot, no 3G, no Bluetooth (headset support only), no decent camera, no MMS, no video, no cut and paste, no secondary video camera, no radio, no GPS, no Java…”

“Yup” the team say.

How do you feel?

Ditch the feature list that you’ve fixated upon in your quest to beat your competitors flagship product?

Only the brave would avoid the tick box mentality and strive for feature parity as a minimum requirement. Would you really throw out 3G, GPS and a decent camera; the real innovations in the market place?

The first generation of iPhone was released in June 2007, three months after Nokia’s flagship handset the N95. On paper, when you compare the phone features side by side, it is a sorry looking list. As a product manager would you rather have the iPhone or the N95 on your resume?

Below and here [SlideShare] is the story in pictures.

Sometime later and I entered the URL (rather long and cumbersome) and landed on a page asking me to enter the receipt number.  This presented me with a satisfaction survey on my store experience to complete.  The system was not intelligent enough to know what product I had bought, and there would be little for me to gain by being presented that information at this point.  At the end of the survey they invited me to enter my email address to enter a prize draw.  With this simple process they have linked an anonymous purchase of a known product with an email address.  An email address has value ; using a tools such as Flowtown from my social network activity they could start building a richer picture of me, including the extent to which I am connected and am an influencer.

The supermarkets have used till receipts for marketing (e.g. Tesco clubcard points) for a while.  But if you do not have an explicit point of sale loyalty scheme, this is an innovative way of connecting the offline purchase experience with an on-going on-line relationship.  Of course Nike go well beyond this.  From the iPhone app that was already installed, through to purchasing the Nike+ sensor, I now have a Nike account where I can track my running progress, uploading my training times after each run.  That really is a 360 degree experience.

something similar happened with ThoughtWorks this week. On the ThoughtWorks facebook page a little ad appeared, “Dear ThoughtWorks, My name is Scott and I want to work with you”.

Clicking on the link opened a microsite dedicated to why ThoughtWorks should employ Scott Robinson.  ThoughtWorkers soon picked up on this and twitter came alive with #dearscott and then this and this.  He’ll still go through the intense recruitment process, but another great example for using Social Media to promote yourself and get a job.

Combining agile software development and design thinking, it is possible to go from concept to cash at speed, placing the customer at the heart of the process.

This presentation that I have recently given at an Ovum symposium and the Shaw Innovation Mashup introduces some of these ideas and practical ways of making customer-driven innovation happen.

Yet reading reviews in the run up to the programme made me reflect on this judgement.  What was being proscribed was formulaic and too be expected.  Focus upon specialty breads go for the chattering middle class market, bring Borough Market and its bread stalls to the Raynes Park suburban semis.  The reviews reveal that actually the bakery is well thought of in the community.

Maher bakery is simply one of the great family establishments in South West London. It’s run by the delightful Angela,who is an example to all of us. Long may it be serve and entertain its happy customers for another 36 years!!…….

There is a market for something other than what the current trend dictates.  There is clearly a demand for the experience that the Maher bakery offers.  Speciality breads are the easy answer, not necessarily the right answer.

The fact that it is old fashioned, the egg and bacon baps are the best in SW anywhere and the friendly atmosphere are exactly the reasons why it is so popular and always busy on Saturday mornings…says we who have been coming for more than 15 years.

It reminds me of the working with retail banks in the dot com era, predictions of the death of branch banking and the closure of the high street banks.  My colleagues poured scorn on me when I tried to defend the branch bank (something I had direct experience of, having spent time working in them); other than the poor and elderly (who  were not profitable to the bank), why maintain a costly, dated branch network?  Times change and branch banking is becoming fashionable again.   Nat West have just launched a new campaign with 14 committments to “becoming Britains most helpful bank”.  Commitment Number one is to “open more branches on Saturdays and extend the opening hours in [their] busiest branches” and they aim to “support the communities in which [they] live and work”.  That is what high street banks used to do.  Until someone like Mary Queen of Shops persuaded them to get on board the new cargo cult.  And now the new banking innovation is to throw all that cargo cult thinking away and take inspiration from the past.

Sometimes innovation is bucking the trend.  Like the Raynes Park bakery that does what it has always done; do it well, and continuously exceed your customer expectations.

Some sort of competitor analysis is performed that proabably includes features and functions that “we like”, (for example ‘the tactile sliders in kayak.com. We like!  And an iPhone-like coverflow, got to have one of those…)

The information architect takes these ideas away and starts building wireframes and the creative team produce designs that bring these wires to life.  The team come up with lots of new, innovative ideas.  This is after all a ‘refresh’, and ‘innovation’ was probably one of the words in the brief.  The creative is fresh and ‘of the moment’, the IA has developed some new interaction models that are unique and compelling.  The business is sold on a new, innovative way of interacting with their customers, something that no one else does and will blow all their competitors away.

I’ve been bouncing ideas around with Luke Barrett (and because he doesn’t blog, I’ll write them down for him) around this approach; specifically the value of innovation against ‘follow fast’.

Luke reminded me of a project we worked on together many years ago. Before we started designing webpages we did usability testing. We did usability testing of the competitors, and of sites that were getting a lot of press as ‘innovative’.  This was at a time that boo.com had just started and the client were talking about how cool an avatar would be on their site, just like boo. We put people in front of boo.com and watched them suffer. Clearly the avatar was an idea good on paper, terrible on execution.  So we killed it.  Not on our site.

We observed what worked and what didn’t on a multitude of sites with real users. Then, like magpies, we took what was good and worked. Nothing particularly innovative, (let other people do that), we took the best of what existed and delivered on that.

So back to our airline. How about a different approach where they start by usability testing their competitors. Ask participants to book tickets on competitor websites. Understand what interaction elements work, what don’t.

Those kayak sliders, cool for geeks (maybe), but how about the target audience that flies and buys online with you?  It may not be cutting edge design, but Does a drop down work better?

The coverflow may be cool on your iPhone, but how successful is it for people seeking a holiday?  A static list has worked for websites till now (and it wasn’t so long ago that horizontal scrolling was the Great Taboo), just because Apple do something that looks cool for a particular purpose on their products, doesn’t mean you have to follow by scrapping your navigation.

There are no prizies for (design) innovation (other than for some award that the design agency may covet). The only metric that counts is conversion rates and the ability of the website to deliver the business case. Leave others to do the crazy innovation stuff, let others go through the dip when they launch new features, make sure you have got the platform and expertise right and be ready to follow fast.