Marketing. Information Technology. Engineering. If companies truly want to succeed, then people from different disciplines within those organizations need to work together to develop competitive strategies. Bernd Schmitt, the Robert D. Calkins Professor of International Business at Columbia Business School, says they also need to become big, bold thinkers. Schmitt has called the concept Big Think, an innovative approach to thinking, creating business models, and marketing. Schmitt says, "Big Think enables business leaders to stay relevant, infuse their companies with fresh, revolutionary ideas, leaving competitors scrambling."
Schmitt's latest book, Big Think Strategy, outlines how companies such as MySpace, IBM, Apple, Whole Foods, and General Motors have benefited from Think Big strategies. Schmitt has either authored or co-authored seven books, including the acclaimed Experiential Marketing and Customer Experience Management. He has done consulting work for Eli Lilly, Volkswagen, Siemens, and Vodafone.
Recently, enterpriseleadership.org sat down with Professor Schmitt to learn more about how IT professionals can become Big Thinkers. Here is what he had to say:
EL: Can you briefly summarize the differences between Small Think versus Big Think?
BS: Small think sets in when middle managers become very risk adverse. They use the same old procedures, checking everything with a step-by-step analytical approach. Before they can launch a new venture, they have to double check with their superiors, and they're afraid to do anything new and innovative.
On the other hand, Big Think is about visionary leadership, thinking out of the box, and taking risks. This leadership style has certain kinds of thinking, such as looking into the future, and doing things differently from what is happening currently in your industry. Big Think is also a behavioral style. You manage projects by focusing on making a major impact on the marketplace, and looking at where you want to take things in the future.
Many companies, which start with an entrepreneurial spirit often, get stuck doing the same procedures repeatedly.
EL: What are some of the Big Think strategy types?
BS: Big Think has four strategy types. With integration, you add seemingly incompatible concepts, proving they're really compatible. For example, amazon.com demonstrated it could offer great customer service without the need for a human touch. Opposition assumes a contrarian viewpoint. For example, Dove's advertising campaign for real beauty celebrates older women, not the 20-something perfect models. Essence takes the essential characteristic of a strategy to an extreme. For example, Wal-Mart uses it massive distribution system to keep driving down costs. Transcendence goes beyond the established boundaries. The Blackberry is an example of transcendence.
EL: Some companies say they that innovation is built into their culture, but some of these companies can't score more than one homerun. Why?
BS: The executive team communicates corporate culture, which can be key to innovation. However, this team has to keep getting the innovative message out, even after the company has a major breakthrough. Take Motorola's very successful Razr cell phone. It had a great product launch. On the other hand, what else is happening at Motorola? Organizations that have one innovative success don't necessarily have Big Think cultures. Many of these organizations are lucky enough to have a very energetic team behind the innovation.
EL: How do you create a Big Think culture?
BS: To create a corporate culture to sustain Big Think, organizations need to hire people from a diverse talent pool, to provide them with the right environment, and to set up teams and to provide them with challenging projects. Organizations need to stimulate these people mentally so they'll get excited about taking the projects forward.
I've worked with many siloed organizations. When I do a project on Big Think and innovation, I always set up cross-functional teams. Research shows that innovation can benefit from cross-functional teams. However, most companies lock cross-functional teams in siloes. Government agencies know the benefit of using cross-functional teams or multidisciplinary teams for solving problems such as global warming.
EL: Can you provide an example of the innovative ideas developed by a cross-functional team you set up?
BS: I've done many projects with Vodafone in Europe. We put together cross-functional teams of Vodafone people from IT and marketing. These teams started with a project WOW initiative that was suppose to create innovative ideas that could delight customers. One particular project focused on developing more innovative mobile phone services, but also providing more innovative treatment of customers in the call center, on the Web site, and in the stores.
For example, Vodafone in Portugal came up the pizza delivery concept of getting a new cell phone. The goal was to get a cell phone into a customer's hand within a half hour after they called in. With a GPS, the company could track where the customer is, and have a representative get on a motorbike and deliver the phone to the customer. The representative could explain the phone's feature to the customer, as well as to synchronize information from the customer's old telephone to the new one.
EL: Can you provide another example of a company that has benefited from your Think Big strategy?
BS: Samsung is doing very well these days with its brand. A few years, Samsung Electronic offered poor quality projects in the U.S. That company made a major change to improve the quality of its product. In fact, in some ratings Samsung has surpassed its key competitors, such as Sony, in innovative product design and quality.
Samsung has also focused more on the consumer experience rather than just their products and technologies. How did this happen? A few years ago, the chairman of Samsung set up cross-functional teams comprised of people from marketing, product design, and information technology. These teams went around the world studying how consumers in different parts of the world live, and what kinds of products they needed for their homes and their work. We've seen a dramatic success here. Samsung has aligned its new initiative, called creative management, with Big Think. Now that Samsung has an edge on its competitors, it has to figure out how it will stay ahead through continuous innovation.
EL: What affect does timing and marketplace trends have on Big Think ideas?
BS: Big Thinking is not just about having this big idea, but you have to take it to the marketplace. Big Think ideas very often work best if they click with some trend that's happening in the current consumer environment. Take the wellness trend, which has caused an explosion in spa services and in spa products, which have unusual ingredients no one heard about 10 years ago. If you want to come up with an innovative skincare product line or some new spa massage services, you have to do it fast. These trends come and go. Who knows if American consumers in five to 10 years will want to go to spas. You have to cut the bureaucracy and other things that are preventing bold ideas to come about.
EL: Can you briefly summarize the differences between Small Think versus Big Think?
BS: Small think sets in when middle managers become very risk adverse. They use the same old procedures, checking everything with a step-by-step analytical approach. Before they can launch a new venture, they have to double check with their superiors, and they're afraid to do anything new and innovative.
On the other hand, Big Think is about visionary leadership, thinking out of the box, and taking risks. This leadership style has certain kinds of thinking, such as looking into the future, and doing things differently from what is happening currently in your industry. Big Think is also a behavioral style. You manage projects by focusing on making a major impact on the marketplace, and looking at where you want to take things in the future.
Many companies, which start with an entrepreneurial spirit often, get stuck doing the same procedures repeatedly.
EL: What are some of the Big Think strategy types?
BS: Big Think has four strategy types. With integration, you add seemingly incompatible concepts, proving they're really compatible. For example, amazon.com demonstrated it could offer great customer service without the need for a human touch. Opposition assumes a contrarian viewpoint. For example, Dove's advertising campaign for real beauty celebrates older women, not the 20-something perfect models. Essence takes the essential characteristic of a strategy to an extreme. For example, Wal-Mart uses it massive distribution system to keep driving down costs. Transcendence goes beyond the established boundaries. The Blackberry is an example of transcendence.
EL: Some companies say they that innovation is built into their culture, but some of these companies can't score more than one homerun. Why?
BS: The executive team communicates corporate culture, which can be key to innovation. However, this team has to keep getting the innovative message out, even after the company has a major breakthrough. Take Motorola's very successful Razr cell phone. It had a great product launch. On the other hand, what else is happening at Motorola? Organizations that have one innovative success don't necessarily have Big Think cultures. Many of these organizations are lucky enough to have a very energetic team behind the innovation.
EL: How do you create a Big Think culture?
BS: To create a corporate culture to sustain Big Think, organizations need to hire people from a diverse talent pool, to provide them with the right environment, and to set up teams and to provide them with challenging projects. Organizations need to stimulate these people mentally so they'll get excited about taking the projects forward.
I've worked with many siloed organizations. When I do a project on Big Think and innovation, I always set up cross-functional teams. Research shows that innovation can benefit from cross-functional teams. However, most companies lock cross-functional teams in siloes. Government agencies know the benefit of using cross-functional teams or multidisciplinary teams for solving problems such as global warming.
EL: Can you provide an example of the innovative ideas developed by a cross-functional team you set up?
BS: I've done many projects with Vodafone in Europe. We put together cross-functional teams of Vodafone people from IT and marketing. These teams started with a project WOW initiative that was suppose to create innovative ideas that could delight customers. One particular project focused on developing more innovative mobile phone services, but also providing more innovative treatment of customers in the call center, on the Web site, and in the stores.
For example, Vodafone in Portugal came up the pizza delivery concept of getting a new cell phone. The goal was to get a cell phone into a customer's hand within a half hour after they called in. With a GPS, the company could track where the customer is, and have a representative get on a motorbike and deliver the phone to the customer. The representative could explain the phone's feature to the customer, as well as to synchronize information from the customer's old telephone to the new one.
EL: Can you provide another example of a company that has benefited from your Think Big strategy?
BS: Samsung is doing very well these days with its brand. A few years, Samsung Electronic offered poor quality projects in the U.S. That company made a major change to improve the quality of its product. In fact, in some ratings Samsung has surpassed its key competitors, such as Sony, in innovative product design and quality.
Samsung has also focused more on the consumer experience rather than just their products and technologies. How did this happen? A few years ago, the chairman of Samsung set up cross-functional teams comprised of people from marketing, product design, and information technology. These teams went around the world studying how consumers in different parts of the world live, and what kinds of products they needed for their homes and their work. We've seen a dramatic success here. Samsung has aligned its new initiative, called creative management, with Big Think. Now that Samsung has an edge on its competitors, it has to figure out how it will stay ahead through continuous innovation.
EL: What affect does timing and marketplace trends have on Big Think ideas?
BS: Big Thinking is not just about having this big idea, but you have to take it to the marketplace. Big Think ideas very often work best if they click with some trend that's happening in the current consumer environment. Take the wellness trend, which has caused an explosion in spa services and in spa products, which have unusual ingredients no one heard about 10 years ago. If you want to come up with an innovative skincare product line or some new spa massage services, you have to do it fast. These trends come and go. Who knows if American consumers in five to 10 years will want to go to spas. You have to cut the bureaucracy and other things that are preventing bold ideas to come about.
EL: What personal characteristics do people need to have or to develop if they want to be successful Big Thinkers?
BS: The key thing is to create something that's exciting and new. When I work with companies, we always do creativity exercises. It's just not the analytical side you need to appeal to. Whenever I discuss what's required to get someone to be a Big Thinker, I mention having a lot of guts because many people might perceive your ideas as risky and want to kill them. If anything needs to be killed, it's those sacred organizational cows. You need to come up with alternative current processes. That takes guts. It also takes passion and perseverance to see a project completed. As a leader, you also need to expose yourself to many different things. Most company people are very narrow-minded and are only interested in certain things. They are experts at some things, but they don't often see the bigger picture. As individuals, they don't expose themselves to different things, such as sports, museums, or travel. When you're on a business trip, just don't sit in your hotel room. Try to see what's outside. Some creative ideas might emerge.
EL: What role can IT departments play in innovation or enhancing a company's brand if any?
BS: I've seen IT departments that have done a tremendous job of helping call centers better understand the needs of customers. Call center representatives need to have at their fingertips all of the relevant customers information. The challenge is how do you turn a transactional approach into a true CRM. Most call center systems have nothing to do with building relationships, they are purely transactional. Say a call center person has access to a database service that shows, not only when the customer bought the product, but also what concerns a customer had when he or she last called, and what suggestions that customer received. An integrated database system like this can help increase brand awareness because it provides a way to connect emotionally with customers.
What personal characteristics do people need to have or to develop if they want to be successful Big Thinkers?
The key thing is to create something that's exciting and new. When I work with companies, we always do creativity exercises. It's just not the analytical side you need to appeal to. Whenever I discuss what's required to get someone to be a Big Thinker, I mention having a lot of guts because many people might perceive your ideas as risky and want to kill them. If anything needs to be killed, it's those sacred organizational cows. You need to come up with alternative current processes. That takes guts. It also takes passion and perseverance to see a project completed. As a leader, you also need to expose yourself to many different things. Most company people are very narrow-minded and are only interested in certain things. They are experts at some things, but they don't often see the bigger picture. As individuals, they don't expose themselves to different things, such as sports, museums, or travel. When you're on a business trip, just don't sit in your hotel room. Try to see what's outside. Some creative ideas might emerge.
EL: What role can IT departments play in innovation or enhancing a company's brand if any?
BS: I've seen IT departments that have done a tremendous job of helping call centers better understand the needs of customers. Call center representatives need to have at their fingertips all of the relevant customers information. The challenge is how do you turn a transactional approach into a true CRM. Most call center systems have nothing to do with building relationships, they are purely transactional. Say a call center person has access to a database service that shows, not only when the customer bought the product, but also what concerns a customer had when he or she last called, and what suggestions that customer received. An integrated database system like this can help increase brand awareness because it provides a way to connect emotionally with customers.
Author: Elizabeth M. Ferrarini - She is a technology writer from Boston, Massachusetts. Reach her at elizabethferrarini@yahoo.com.
