Posts Tagged ‘innovation’

New Music Software Predicts The Hits

Monday, October 12th, 2009

black-eyed-peas_stdI heard this story on this morning on NPR.

http://www.npr.org/templates/story/story.php?storyId=113673324

I’m not an audiophile, so I wasn’t paying much attention until they mentioned the Black Eyed Peas new song, “I’ve got a feeling.” I like this group regardless if I’m not their target demographic. I saw them perform on Ellen DeGeneres’ show, and I remember thinking how simplistic the words are. Very catchy.

Plus, I recently saw the Oprah video of the group performing “I’ve got a feeling” in Chicago with a Flash Mob dance thrown in, and I was hooked. If you haven’t seen the Oprah video, it’s definitely worth a click.

Anyway, the interesting thing about the story is that a company called Music Intelligence launched a Web site for songwriters called Uplaya. The website allows songwriters to upload a song gives it a “success rating” based on a series of algorithms.

According to the article, the “software found that hits have certain common patterns of rhythm, harmony, chord progression, length and lyrics. A study conducted by the Harvard Business School found that the software was accurate 8 out of 10 times.”

The amazing fact is that an algorithm can predict success 80% of the time. What if your business had an algorithm that could predict the success of your new offerings 80% of the time? You’d be a huge success!

In the past, I’ve done conjoint analysis studies to find the right combination of attributes and levels to make a successful product or service, but a lot of people are turned off by the “mathiness” of the process. It seems too sterile for the non-quant folks. Maybe I can use stories like Uplaya to revisit some of the findings and generate new enthusiasm. I’ve got a feeling…

www.sawtooth.com

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Swedes turn the stairs into a Piano and make “no fun” Fun!

Sunday, October 11th, 2009

By now, you may have seen and been entertained by this very cool Swedish video. If not, click on this link and spend a minute being amazed.

<click!>The Piano Stair Case <click!>

Tom Hanks and and Robert Loggia danced "Heart & Soul" and "Chopsticks" on the store's large floor piano.

Tom Hanks and and Robert Loggia danced "Heart & Soul" and "Chopsticks" on the store's large floor piano.

What a great idea! Not just because it brings back memories the FAO Schwartz scene in the movie “Big,” but because it illustrates an imporatant Behavioral Economics principal. Delight = Compliance.

The problem with standard, text-book economics is that it assumes that people always act in a rational manner, and always make choices that are best for them in the long run. We know this isn’t true. If it were, we’d all be thin, we’d all have plenty of money in the bank for retirement, and we always would have prepared in advance for that mid-term exam.

In fact, we know that people tend to rationalize not doing the right thing. In this case, people know it would be better to take the stairs because it would give them exercise, save electricity, etc. But, in most cases, people take the elevator or escalator because it’s easier.

The genius in the video is making taking the stairs delightful, and, therefore people comply.

I have a former colleague from the bookfield that’s making a motivational speaking career out of getting people to, “Take the Stairs!” Check out his blog.

http://takethestairs.wordpress.com/

The same principle was recently applied to banking. A credit union in Michigan was having trouble getting people to save money, so they instituted a lottery! The idea was to give people a chance to win a prize for every $25 they invested in a Certificate of Deposit. The bank paid for the prizes by giving a lower interest rate on the CDs. Now, a truly rational person would never make this deal because the odds of winning don’t justify the lost interest. However, the promotion is a huge success. People like the short-term thrill of a lottery chance, so it makes the idea of saving money more palatable. Check out the full story.

http://online.wsj.com/article/SB124786612839159989.html

So, the bottom line is if you want someone to do something, find a way to make it fun!

http://www.rolighetsteorin.se/en/

http://www.thefuntheory.com

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Why we drink beer.

Saturday, October 10th, 2009
It's good beer, but why do people outside of Thailand drink it?

It's good beer, but why do people outside of Thailand drink it?

One of my QFD colleagues, Glenn Mazur QFD Red Belt(r), recently co-authored an interesting paper on the reasons people drink beer. Specifically, the paper discusses the reasons people drink Singha beer.

“We sell our beer in the U.S., U.K. and Australia, but we don’t know why they drink it.” – Singha

“Becoming aware of their unawareness, the top management of Singha decided to embark on research of their foreign customers to better understand their interests, motivations, self-image, and other characteristics they might share, in order to assure their continuous business success. The uniqueness of this project was purely to hear the inner voices of their non-Thai customers and how Singha Beer fits into their love of life. It was not to change the beer formulation, the logo or packaging, or any of the usual tangibles we see in common QFD and Kansei Engineering studies.

http://www.qfdi.org/who_is_qfdi/newsletter_archive/recent_qfd_newsletter.html

I take particular interest in this topic because I was very slightly involved at the beginning of the project. You see, I was having dinner with Glenn and his beautiful wife Mayumi in a Thai restaurant in Orlando, and I ordered a Singha beer. It was at that moment that Glenn told me about the project he was embarking on. Singha beer and my goofy camera pose

He asked me if I’d had Singha beer before, and I told him “no.”

He asked me why I ordered it, and I said something like, “Well, we’re in a Thai restuarant, I like to try new things, and it has a cool label.”

A normal person would politely shake his head, but Glenn hears comments like those and translates them into “true customer needs” which is the basis of QFD. The true customer needs he came up with were something like:

  • I want to have a drink that goes with the dining experience
  • My drink makes me appear stylish
  • I want a unique experience

Later on, Glenn refines all the observations and has customers clarify and prioritize the needs. All of this detail is in the paper. The grand idea is that you can take a rudimentary activity like drinking beer, define the key customer needs, and brainstorm solutions based on those needs to grow your business. Great stuff, and it’s about beer.

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