iPlot

In Between Years: Innovation Trends and Snippets

Soccer and innovation: I blogged about "what Ronaldinho and FC Barcelona can teach you about innovation" before "el clásico" on Sunday, and, well, there was a certain risk that my bold claim would backfire. Madrid slammed Barca in its own backyard 1-0, and while I'm flattered that my favorite Fox soccer analyst Bobby McMahon is linking to my post, his comment still stings a little....

Monarchy 2.0: Queen Elizabeth has launched a new channel on YouTube -- the Royal Channel -- which will broadcast her traditional Christmas address, at 3 p.m. (7 a.m. PST, 10 a.m. EST) on Tuesday. According to a YouTube spokesperson (via the New York Times), the channel has been a huge success so far, drawing hundreds of thousands of viewers. The most popular clip is the 1957 broadcast of the Queen's Christmas address, with more than 400,000 viewers.

Trends of the trends: That time of the year again. Media out-forecast each other with predictions of trends for 2008. Here's a compilation: consumer trends, advertising and marketing trends, fashion trends, IT trends, security trends, marketing trends for small and medium-sized businesses, media trends, air travel trends, and there are much more....

Mobile: Speaking of trends, David Armano argues that 2007 was the year of social media and 2008 will be the year of mobile media. I've heard that one before, you may think, but perhaps he's right, and fueled by the "iPhone effect" this time companies will live up to the hype. There are indeed signs of real break-through innovation on the horizon: "Silicon Valley's first phone company," Ribbit, is all the talk right now in Silicon Valley; "viral" WiFi models like that of Fon will continue to thrive; more local businesses and chains will offer free Wi-Fi; and Google's Android platform will drive tons of new business for user interface designers and developers. And then there is the new Skypephone with its iSkoot software. And the Google phone...?

Conversation analytics: New metrics for new social media are in high demand. How, for example, do you track and analyze conversations on Twitter? Tweeterboard is an attempt to provide "conversation analytics," and one of the parameters it uses to gauge someone's influence on Twitter is the level of "giving and receiving love..."

Happy holidays!

Ante “El Clásico”: What Ronaldinho and Soccer Can Teach You about Innovation

It's been a while since I last wrote about soccer, and perhaps that lull can be explained by a lackluster soccer season so far, especially in my favorite league, the Spanish Primera Division. The performances of the two top teams, Real Madrid and FC Barcelona (Barca), have been inconsistent, and while both have displayed some exceptional skills in their best matches, the passion, the surprise, and the big drama, all of which crucial elements of soccer's unique appeal, have been largely missing.

There is hope that this will change on Sunday when the two archrivals battle each other for the first time this season, in the derby of derbies, "El Clásico," which is historically loaded with enourmous psychological, cultural, and political significance. Tomorrow's edition is a special of specials: Madrid is leading the table with four points ahead of second-placed Barca, and the upcoming clash, the last game of the first half of the season, can potentially give Real a comfortable seven point cushion over Barca during the winter break.

Innovation is rare

Looking back to the past Clásicos and looking forward to the encounter tomorrow, I have been wondering what can make the difference when two equally star-studded teams compete. I think I have found the answer: innovation. The more innovative team won the past games, and the more innovative team will win tomorrow. This hypothesis is as simple as it is challenging. Soccer is often used as a metaphor to describe innovation in a business context ("meaningful innovation is like scoring a goal in soccer -- it doesn't happen often, but is always a hallmark that differentiates the winning team"). But what does innovation actually mean in soccer?

First of all, if you examine the history of soccer for groundbreaking, "game-changing" innovations, you realize they have been scarce; by and large the game hasn't changed much. Some innovations resulted from a changing of the rules (on the macro-innovation level, if you will). Most of them, however, were truly driven by either organizational or individual excellence: for example, the position of the "Libero," the "sweeper" before the goal-keeper, who, freed from marking a direct opponent, was mandated with opening a team's game from deep in its own territory (German legend Franz Beckenbauer perfected this role in the 70s); the allure of the "playmaker" (personified by the French Michel Platini in the 80s); the introduction of a three-man defense row in the 90s; the "Sweeper-Keeper" performing the defensive actions of a libero; the increased importance of the "6," the central defensive midfielder (you can study tomorrow how elegantly Barcelona's Yaya Toure interprets this role); and the Dutch "Total Football" concept with its fluid, attacking 4-5-1 and 3-2-5 formations.

Total Football

As in business and academia, innovation takes place in soccer on both the collective and individual levels. And it is deeply rooted in culture. Starting in their youth education, great teams establish a distinct style which sets them apart from mediocre ones. Almost always, these styles have been shaped by a city's, a region's, or a nation's history. Ajax Amsterdam and the Dutch school of "Total Football," considered by many to be the most sophisticated and most influential soccer philosophy in recent times, can be traced back to historical, geographical, and socio-cultural factors, as can the Dutch refusal to win the "big one" (the Netherlands’ national team never won a final at any of the international championships), as told by the book "Brilliant Orange." Total Football was the first multi-disciplinary approach to playing soccer and implied that all players can play in all positions and have comparable levels of fitness, technical ability, and awareness. It is focused on the creation of space on offense and the destruction of space on defense. The result is maximum flexibility, a strong element of surprise, and the ability to exert pressure on any of the opponent’s moves, at any time during the game. Besides Ajax, a number of British clubs including Arsenal London and Manchester United have embraced and refined Total Football, and so has FC Barcelona, with its strong tradition of Dutch coaches and players.

In stark contrast, the so-called "catenaccio" (literally translated, "door-bolt"), a rather static, defensive-minded tactic, is the hallmark of most Italian clubs. Some contend this goes all the way back to the Roman Empire and its poise to defend its borders, but I'm not sure if I buy into this explanation: even the Roman Empire, in order to become an empire, had to conquer territory first, no? In any case, the point is that soccer tactics and styles, and herein lies one parallel to business innovation, are inexorably linked to culture (to learn more about the cultural -- and religious -- underpinnings of soccer, read "How Soccer Explains the World" by Franklin Foer).

Wanted: Entrepreneurs

And yet, only a few soccer pundits would dispute that the most critical innovation in soccer occurs on the individual level. While some herald the "star is the team" philosophy and praise the power of the collective, it is more plausible to uphold the "whole is more than the sum of its parts" argument precisely because some of the parts, that is, certain individuals, are better than others. Although there are attempts underway to "crowd-source" soccer, the difference between win and loss is still marked by the quality of individuals -- players, coaches, and, not to forget, referees.

Players and coaches are chased with tons of cash not merely because they are stars who are able to turn the game into a spectacle and thus add invaluable charisma and entertainment to a club's brand, but also because their individual decisions, be they strategic (coach) or opportunistic (player), decide over fortune and misfortune. Both coach and player are risk-taking entrepreneurs, and the more creativity they exhibit, the more freedom they're typically given. Ironically, buying risk-takers is a measure for clubs to minimize risk and manage the inherent volatility of their success. The impact of coach and player is significant but their tools of influence are somewhat different. In the long-term, the coach can create a competitive culture that propels creativity and innovation, build confidence and team spirit; on the immediate match level, he can alter the formation and line-up, and make adjustments and substitutions during the game. But can his genius or lucky hand re-invent a team or truly innovate the game?

Ultimately, the most visible and arguably most impactful innovation lies in the feet of the players. Notwithstanding the team's culture, strategic formation, and tactical fitness, innovation on a micro-level is still the biggest competitive advantage, and it is engrained in soccer's DNA: Paul B. Paulus and Bernard Arjan Nijstad argue in their book "Group Creativity: Innovation Through Collaboration" that soccer offers more opportunities for creativity and innovation than baseball and other U.S. sports because the team's task is more "hierarchical, less sequential, and less cyclical." Furthermore, soccer players can innovate their game in every game. Here's what Barcelona's Ronaldinho, FIFA World Player of the Year in 2004 and 2005 and the most marketable player in the world, generating $57.8m annually, says: "The important thing is to keep on innovating and finding a way to surprise. You always look to surprise, with dribbling, a new move, a new pass. (…) As long as I believe I have the creativity for that, that's what I'll try and do. I'm never going to lose my characteristics because that's what I know how to do. I want to mix everything that is innovative with the same things as always. Perhaps the fans expect me to do all the tricks, the opponents as well. If you don't innovate, they all take the ball away from you. I believe it's important to innovate in order to avoid repetition."

Playtime

When El Clásico kicks off tomorrow, keep all that in mind. Admire the poetic and sometimes melancholic Total Football of Barca, and respect the prosaic, rather efficient style of Real Madrid. And watch how a few players will decide the game. Soccer can be researched, carefully planned, and strategically devised -- however, the most beautiful thing about this "beautiful game" is the fact that there is no lag between idea and implementation. Creativity can be immediately applied and has to be found on the pitch again and again. Every match is a blank slate. There is no history, only anticipation. Nothing is ever the same. This is what business leaders can learn from soccer: Innovation is, literally, a "play," and the best players will win.

The New Camp Nou Will Shine in the Spirit of Gaudi

Catalan socer club FC Barcelona and British star architect Sir Norman Foster, who designed the new Wembley Stadium, have revealed the design for the remodelling of the club’s iconic Camp Nou.

Inspired by the colourful works of the late Catalan architect Antonio Gaudi, the stadium, celebrating its 50th anniversary this upcoming Monday, will be enveloped in a mosaic veil of coloured tiles, a mixture of polycarbonate and coloured glass panels. Also taking some clues from Herzog & De Meuron’s work for the Allianz Arena in Munich, Foster’s model will integrate special lighting elements within the tiles of the outer skin so the external façade can be used for animated lighting displays.

"Everybody will instantly see the stadium's new external appearance as a strong and bold manifestation of the club," the club said in a statement. "It will be seen as fitting proudly into the City of Barcelona's architectural heritage of distinctive and colourful buildings."

The renovation of the stadium is set to cost the club around $350 million. 10,000 extra seats are also to be added, extending the capacity of the stadium to 108,000 seats, making the Camp Nou the 4th biggest football stadium in the world behind the Rungrado May Day Stadium in North Korea (150,000), Salt Lake Stadium in India (120,000) and the Estadio Azteca in Mexico (114,465).

Micro-Vacations: Work/Life Off Balance

Shorter are the attention-spans, the life cycles, the relationships -- and the vacations. The work-life balance is off. Work is further invading our private lives. Even the vacation as the last fortress of “peace of mind” amidst 24/7 connectivity is now being more and more often sacrificed for work needs.

Both the New York Times and the Wall Street Journal, in the same week, recently portrayed the surge of mini-vacations, observing that “a growing number of Americans are now stacking up a series of shorter getaways and shunning larger stretches.” Data support this view: According to the Current Population Survey compiled by the Bureau of Labor Statistics, 7 percent more workers took off partial weeks in 2006 than in 2005. At the same time, the percentage of all workers taking off a full week on any given week has declined by about a third since 1990, to 2.1 percent from 3 percent. A 2004 survey of 1,003 US workers by the Families and Works Institute showed that 14 percent took vacations up to weeks or more during a year, while 37 percent limited their vacations to fewer than seven days. And lastly, according to expedia.com, 35 percent of US adults in employment are not taking all the vacation days they have this year, compared to 33 per cent last year.

The main reasons for this shift towards mini-vacations are that people feel overwhelmed when they return to work or fear that they may lose their competitive advantage within or outside their organization if they check out for too long.

The travel industry has recognized this trend and will further propel it by offering a growing number of “quick trips” geared towards white collar knowledge workers in high-pressure jobs. This has led to unprecedented extremes, as the Wall Street Journal reports. A 26-year old PR account executive from NYC in flew to Barcelona on Friday night for a short vacation weekend before returning to work just in time for a Monday morning meeting.

Meta-Marketing: When the Story Becomes the Product

“Marketing without marketing” is the title of a book about viral, consumer-driven marketing. “Meta-marketing” would be another suitable term to describe the phenomenon that was once more widely discussed around the recent release of the iPhone. Stunned by the buzz about the “Jesus Phone,” many observers pointed out that Apple actually didn’t do much marketing and relied mainly on the evangelizing power of its avid early adopter customers. There were ads, sure, (for example on the back over of the New York Times magazine), but overall, the investment in marketing seemed disproportionally low given the impressive results.

This stands in stark contrast to the marketing for the much-hyped “Skins” shoes that made Business Week’s Reena Jana, underwhelmed by the product, wonder: “Maybe we were expecting too much? I can’t help but wonder, could the marketing and early buzz around this start-up shoe company be so good as to eclipse the product itself?”

Does this imply that marketing can be too good? How much marketing is good for a product, and how do you draw the line between cool buzz and over-hype? At which point does buzz become an annoyance and distract from the product? Is it a matter of tone, style, or simply volume? Is it the singer, is it the song?

The answer, of course, is far more complicated that these questions would suggest. In any case, what Jana’s comment proves is that marketing itself has become a subject of marketing. In fact, the way you market a product may at times even be more influential in driving a product’s perception than the actual product features. Welcome to the age of meta-marketing. The “making of” story, the plot behind the plot, and the peripheral actions are increasingly clamoring for the center of attention. If you’re a marketer, this means for you: build the perceived value of your marketing strategy into the marketing strategy itself.

Here are eight concrete ways to do it:

1. Draft a press release at the beginning of a project to project the ideal outcome, setting up a palatable “PR goal” that the product has to live up to.

2. Write the one feature article about your product that you want to see published in your top-target publication (and then make it happen).

3. Develop an alternative, not-so-obvious scoop that makes for good rumors and can be shared by consumers and media over cocktails (“…but here’s the really interesting thing. Did you know that…?”)

4. Come up with a truly original, groundbreaking marketing innovation for your campaign (“the first campaign to advertise on eggs”; well, this one is actually not so innovative anymore…)

5. Speak at an industry conference or publish an article about your marketing.

6. Let the public participate in the success of your campaign – in real-time. This is America. People love to watch horse-races.

7. Challenge the rules and ironically play with the confinements of your genre (i.e.: a full-page ad about the ineffectiveness of print advertising). Irony is good because it creates an ambiguous room of resonance that both advocates and opponents of your position can inhabit.

8. Create a scandal that doesn’t hurt your brand. Case in point: When Al Gore III, the associate publisher of Good Magazine, got arrested on suspicion of possessing marijuana and prescription drugs, driving 100 miles per hour with his Prius, Slate promptly mocked: “Can you drive 100 miles with a Prius?” and everyone suddenly knew Good Magazine. The story didn’t have much staying power, but when the son of the good Al Gore, of Good Magazine, is good for producing such a good story, well, then it’s simply good (meta-)marketing.

Barca Shines at Stanford

It was a remarkable event yesterday at Stanford. Joan Laporta, the president of FC Barcelona, gave a lecture about the club’s history, sporting values, and humanitarian vision. Having Laporta speak at Stanford was a good mach: Excellence, entrepreneurship, and leadership are virtues that both brands have in common, and the program consequenly turned out to be a true lovefest. Laporta impressed as a perfect ambassador for Barca – a sincere, warm, and humble man with a good sense of humor and an obvious passion for the “beautiful game” that his club – more than any other soccer club in the world – represents. He shook everyone’s hand, listened carefully, and engaged in many conversations. He said things such as “We want to be the best, not necessarily the first” or “Heaven for me means Barca scores against Real Madrid every minute” and was just a gentleman overall. He heralded the decision to sign a five-year sponsorship agreement with UNICEF as “one of the best decisions the club ever made,” and it’s true that UNICEF was the best possible signing for the club (the next possible candidate would have been a company from Silicon Valley, as some blogs – falsely – had rumored…see picture below).

I had the chance to speak with Laporta briefly about the challenge of managing risk at a soccer club, which, by its very nature, is an extremely volatile enterprise. He said that soccer happens in four-year cycles and that it can be detrimental if you hang on to the same group of players for too long (as Madrid did). In fact, it was mandatory, he said, to change a winning team. And he added:“ I hope I will have the strength to make some tough decisions.” Clearly, the Barca team, in the current constellation, has peaked. Laporta is a wise man and knows this. His heart is beating for Barca but his head is that of a business man.

Read the coverage in the Stanford News

More Than a Club: Joan Laporta (President of FC Barcelona) at Stanford

As you may tell from some of my past posts, I am really thrilled about this lecture at Stanford tomorrow: Joan Laporta, president of FC Barcelona (“Barça”), is giving a lecture about the club’s vision. He will talk about how Barca has become a global brand with global commitments, while continuing to identify Europe's largest and most developed non-state culture. FC Barcelona was one of the first soccer clubs to be founded in Spain, and it became a haven for Catalan sentiment when Catalan self-government and Catalan culture were proscribed during the dictatorship.

Joan Laporta was elected president of FC Barcelona in June 2003 and won a second presidential term in summer 2006. Under his leadership, the club has striven to promote the values that have traditionally been associated with Barça: Catalan nationalism, civilian duty, and universality. FC Barcelona has since become a club with an enormous public resonance. The club's ecent partnership with UNICEF is a statement of the club's continuing efforts to be at the forefront of solidarity projects with a global reach.

Event details
FC Barcelona web site
Barca channel on YouTube

Leo Messi and The Wondergoal

Much has been written already about 19-year old Leo Messi’s wondergoal last night in Barcelona’s game against Getafe. Coach Frank Riijkard called it a “piece of art” but it was much more. In 100 years, people will still talk about this goal. It was a perfect demonstration of everything that makes soccer the most beautiful sport and one of the last romantic refuges of mankind: simplicity, passion, determination, and the power to bring together different people from very different backgrounds – all for that one moment. It was moving to see how Messi suddenly realized that he had scored a historic goal and how his teammates and the crowd joined him in his joy.

Many pundits compared the goal to the one Maradona scored in the 1986 World Cup. I certainly know which one I hold in higher esteem. Judge yourself!

Messidona!

Barca or What It Takes To Be "More than a Club"

I went to the Camp Nou stadium last Saturday to see FC Barcelona play against Deportivo La Coruna (2-1), and I spent Sunday morning reading the sports papers. "Sports" dedicated a record-breaking 20 (!) pages to the game, analyzing every single move and individual performances of the players down to the last detail. The section even included a story about Argentine wunderkind Leo Messi bouncing an orange "44 times," overtaking a record set by Diego Maradona two decades ago.

Yes, football really is a way of life, and Barca in particular is a culture of its own kind. To a European soccer fan living in the US who has grown accustomed to hyper-commercialized sports events, it was reassuring to see how purist the soccer experience still is at Camp Nou – a few pre-game commercials, no half-time show whatsoever, and all attention on the players, even during their warm-up exercises before the game. In Camp Nou, it is all about the "beautiful game."

This is also why the fans are rather mellow; they are true connoisseurs who are spoiled by the glorious years of continuous successes and star-studded teams, and they study the action on the field as if it's a piece of living art. There is no unnecessary cheering, and the only singing occurs when the Barca anthem is played.

Ronaldinho, Messi, and Eto'o, the three Barca ueber-strikers, put in super-stellar performances against Deportivo, while the rest of the team played as if they knew that they have peaked and won't stay together in this line-up beyond the current season. Some players' contracts end, others may seek their fortunes some place easier to make it into the starting eleven. For Barca, this is not too concerning as long as the club is able to retain its superstar Ronaldinho (rumors about his potential move to Milan have not been fully squashed). Transformation has always been a companion to the Catalan club's proud history. In this sense, the New Barca we'll see next season will be the Old Barca that has become a global brand.

When I was in Barcelona, I was thinking again about why Barca is such a powerful brand. Let's look at the magic ingredients:

Vision: Barca has always set itself and its members daunting challenges to strive for and rally around. The latest one is "The Great Challenge" campaign which aims at growing the membership number, fostering Barca as the biggest and greatest club in world soccer.

Sense of identity: Barca is "mes que un club" ("more than a club"). Based on its spirit of independence (both politically, as symbol of the Catalan autonomy, and financially – the club is fully owned by its members), it has always taken on broader social issues and played a pivotal role in promoting diversity, tolerance, and peace worldwide, defying the prevalent commercialization of soccer. Recently, it even entered an unprecedented sponsorship agreement, not with a corporation but with UNICEF, providing invaluable exposure for the children's organization and a halo-effect for Barca (it never hurts to have another crown). It is ironic that a club rooted deeply in Catalan nationalism has such an international following. Barca represents the Catalan people while at the same time creating a sense of universal belonging to "beauty and quality."

Charismatic reference point: Ronaldinho, inarguably the world's best soccer player, serves as a reference point for team mates and fans alike. There is no one else like him, and he outshines all other soccer superstars with his smile and playfulness.

Aggressive marketing: Barca just relaunched its web site and enriched it with video clips, more interviews, and a state-of-the-art compartmentalized web design. The club also launched its own channel on YouTube. Products such as jerseys, balls, and other Barca paraphernalia carry the brand to soccer fans across the world. (And I might add that it's virtually impossible to find a vintage Barca poster… they simply do not exist on the public market. Maybe Ronaldinho has papered his walls with them? – ed. )

Only the best: Barca's management and members are never satisfied with average and they despise mediocrity. They understand top quality, tactically advanced soccer as a moral obligation. Only the best players make it to Barca where the competition is brutal. In analogy to GE's famous 10% rule, the lowest performing players in the team usually have to leave the club.

Public commitment to goals: Before the beginning of this season Barca declared that its goal was to win all seven competitions it participated in. Some may call this arrogance, but for Barca it's a brand driver. The "Big Hairy Audacious Goals" set by excellent teams always need to exceed the past ones. Motivation originates in the belief and opportunity to achieve the extraordinary – no matter what it takes.

The "Diva" factor: Powerful brands need an element of surprise. They should always take the freedom to ignore the quest for consistency and do what they want - irrationally, passionately, and with no regrets. Fans value Barca as a venue of trust, optimism and quality; but they respect Barca because it sells players that were popular among fans and buys players for astronomical sums against all common business sense. By all standards of modern business, Barca is a professionally managed club but yet there is a sense that anything could happen anytime – almost like in a soccer match.

Barca-Real 3-3

This was probably one of the best soccer games of all times.