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#433872 Breaking Out of the Corporate Bubble ...

For big companies, success is a blessing and a curse. You don’t get big without doing something (or many things) very right. It might start with an invention or service the world didn’t know it needed. Your product takes off, and growth brings a whole new set of logistical challenges. Delivering consistent quality, hiring the right team, establishing a strong culture, tapping into new markets, satisfying shareholders. The list goes on.

Eventually, however, what made you successful also makes you resistant to change.

You’ve built a machine for one purpose, and it’s running smoothly, but what about retooling that machine to make something new? Not so easy. Leaders of big companies know there is no future for their organizations without change. And yet, they struggle to drive it.

In their new book, Leading Transformation: How to Take Charge of Your Company’s Future, Kyle Nel, Nathan Furr, and Thomas Ramsøy aim to deliver a roadmap for corporate transformation.

The book focuses on practical tools that have worked in big companies to break down behavioral and cognitive biases, envision radical futures, and run experiments. These include using science fiction and narrative to see ahead and adopting better measures of success for new endeavors.

A thread throughout is how to envision a new future and move into that future.

We’re limited by the bubbles in which we spend the most time—the corporate bubble, the startup bubble, the nonprofit bubble. The mutually beneficial convergence of complementary bubbles, then, can be a powerful tool for kickstarting transformation. The views and experiences of one partner can challenge the accepted wisdom of the other; resources can flow into newly co-created visions and projects; and connections can be made that wouldn’t otherwise exist.

The authors call such alliances uncommon partners. In the following excerpt from the book, Made In Space, a startup building 3D printers for space, helps Lowe’s explore an in-store 3D printing system, and Lowe’s helps Made In Space expand its vision and focus.

Uncommon Partners
In a dingy conference room at NASA, five prototypical nerds, smelling of Thai food, laid out the path to printing satellites in space and buildings on distant planets. At the end of their four-day marathon, they emerged with an artifact trail that began with early prototypes for the first 3D printer on the International Space Station and ended in the additive-manufacturing future—a future much bigger than 3D printing.

In the additive-manufacturing future, we will view everything as transient, or capable of being repurposed into new things. Rather than throwing away a soda bottle or a bent nail, we will simply reprocess these things into a new hinge for the fence we are building or a light switch plate for the tool shed. Indeed, we might not even go buy bricks for the tool shed, but instead might print them from impurities pulled from the air and the dirt beneath our feet. Such a process would both capture carbon in the air to make the bricks and avoid all the carbon involved in making and then transporting traditional bricks to your house.

If it all sounds a little too science fiction, think again. Lowe’s has already been honored as a Champion of Change by the US government for its prototype system to recycle plastic (e.g., plastic bags and bottles). The future may be closer than you have imagined. But to get there, Lowe’s didn’t work alone. It had to work with uncommon partners to create the future.

Uncommon partners are the types of organizations you might not normally work with, but which can greatly help you create radical new futures. Increasingly, as new technologies emerge and old industries converge, companies are finding that working independently to create all the necessary capabilities to enter new industries or create new technologies is costly, risky, and even counterproductive. Instead, organizations are finding that they need to collaborate with uncommon partners as an ecosystem to cocreate the future together. Nathan [Furr] and his colleague at INSEAD, Andrew Shipilov, call this arrangement an adaptive ecosystem strategy and described how companies such as Lowe’s, Samsung, Mastercard, and others are learning to work differently with partners and to work with different kinds of partners to more effectively discover new opportunities. For Lowe’s, an adaptive ecosystem strategy working with uncommon partners forms the foundation of capturing new opportunities and transforming the company. Despite its increased agility, Lowe’s can’t be (and shouldn’t become) an independent additive-manufacturing, robotics-using, exosuit-building, AR-promoting, fill-in-the-blank-what’s-next-ing company in addition to being a home improvement company. Instead, Lowe’s applies an adaptive ecosystem strategy to find the uncommon partners with which it can collaborate in new territory.

To apply the adaptive ecosystem strategy with uncommon partners, start by identifying the technical or operational components required for a particular focus area (e.g., exosuits) and then sort these components into three groups. First, there are the components that are emerging organically without any assistance from the orchestrator—the leader who tries to bring together the adaptive ecosystem. Second, there are the elements that might emerge, with encouragement and support. Third are the elements that won’t happen unless you do something about it. In an adaptive ecosystem strategy, you can create regular partnerships for the first two elements—those already emerging or that might emerge—if needed. But you have to create the elements in the final category (those that won’t emerge) either with an uncommon partner or by yourself.

For example, when Lowe’s wanted to explore the additive-manufacturing space, it began a search for an uncommon partner to provide the missing but needed capabilities. Unfortunately, initial discussions with major 3D printing companies proved disappointing. The major manufacturers kept trying to sell Lowe’s 3D printers. But the vision our group had created with science fiction was not for vendors to sell Lowe’s a printer, but for partners to help the company build a system—something that would allow customers to scan, manipulate, print, and eventually recycle additive-manufacturing objects. Every time we discussed 3D printing systems with these major companies, they responded that they could do it and then tried to sell printers. When Carin Watson, one of the leading lights at Singularity University, introduced us to Made In Space (a company being incubated in Singularity University’s futuristic accelerator), we discovered an uncommon partner that understood what it meant to cocreate a system.

Initially, Made In Space had been focused on simply getting 3D printing to work in space, where you can’t rely on gravity, you can’t send up a technician if the machine breaks, and you can’t release noxious fumes into cramped spacecraft quarters. But after the four days in the conference room going over the comic for additive manufacturing, Made In Space and Lowe’s emerged with a bigger vision. The company helped lay out an artifact trail that included not only the first printer on the International Space Station but also printing system services in Lowe’s stores.

Of course, the vision for an additive-manufacturing future didn’t end there. It also reshaped Made In Space’s trajectory, encouraging the startup, during those four days in a NASA conference room, to design a bolder future. Today, some of its bold projects include the Archinaut, a system that enables satellites to build themselves while in space, a direction that emerged partly from the science fiction narrative we created around additive manufacturing.

In summary, uncommon partners help you succeed by providing you with the capabilities you shouldn’t be building yourself, as well as with fresh insights. You also help uncommon partners succeed by creating new opportunities from which they can prosper.

Helping Uncommon Partners Prosper
Working most effectively with uncommon partners can require a shift from more familiar outsourcing or partnership relationships. When working with uncommon partners, you are trying to cocreate the future, which entails a great deal more uncertainty. Because you can’t specify outcomes precisely, agreements are typically less formal than in other types of relationships, and they operate under the provisions of shared vision and trust more than binding agreement clauses. Moreover, your goal isn’t to extract all the value from the relationship. Rather, you need to find a way to share the value.

Ideally, your uncommon partners should be transformed for the better by the work you do. For example, Lowe’s uncommon partner developing the robotics narrative was a small startup called Fellow Robots. Through their work with Lowe’s, Fellow Robots transformed from a small team focused on a narrow application of robotics (which was arguably the wrong problem) to a growing company developing a very different and valuable set of capabilities: putting cutting-edge technology on top of the old legacy systems embedded at the core of most companies. Working with Lowe’s allowed Fellow Robots to discover new opportunities, and today Fellow Robots works with retailers around the world, including BevMo! and Yamada. Ultimately, working with uncommon partners should be transformative for both of you, so focus more on creating a bigger pie than on how you are going to slice up a smaller pie.

The above excerpt appears in the new book Leading Transformation: How to Take Charge of Your Company’s Future by Kyle Nel, Nathan Furr, and Thomas Ramsøy, published by Harvard Business Review Press.

Image Credit: Here / Shutterstock.com

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#433803 This Week’s Awesome Stories From ...

ARTIFICIAL INTELLIGENCE
The AI Cold War That Could Doom Us All
Nicholas Thompson | Wired
“At the dawn of a new stage in the digital revolution, the world’s two most powerful nations are rapidly retreating into positions of competitive isolation, like players across a Go board. …Is the arc of the digital revolution bending toward tyranny, and is there any way to stop it?”

LONGEVITY
Finally, the Drug That Keeps You Young
Stephen S. Hall | MIT Technology Review
“The other thing that has changed is that the field of senescence—and the recognition that senescent cells can be such drivers of aging—has finally gained acceptance. Whether those drugs will work in people is still an open question. But the first human trials are under way right now.”

SYNTHETIC BIOLOGY
Ginkgo Bioworks Is Turning Human Cells Into On-Demand Factories
Megan Molteni | Wired
“The biotech unicorn is already cranking out an impressive number of microbial biofactories that grow and multiply and burp out fragrances, fertilizers, and soon, psychoactive substances. And they do it at a fraction of the cost of traditional systems. But Kelly is thinking even bigger.”

CYBERNETICS
Thousands of Swedes Are Inserting Microchips Under Their Skin
Maddy Savage | NPR
“Around the size of a grain of rice, the chips typically are inserted into the skin just above each user’s thumb, using a syringe similar to that used for giving vaccinations. The procedure costs about $180. So many Swedes are lining up to get the microchips that the country’s main chipping company says it can’t keep up with the number of requests.”

ART
AI Art at Christie’s Sells for $432,500
Gabe Cohn | The New York Times
“Last Friday, a portrait produced by artificial intelligence was hanging at Christie’s New York opposite an Andy Warhol print and beside a bronze work by Roy Lichtenstein. On Thursday, it sold for well over double the price realized by both those pieces combined.”

ETHICS
Should a Self-Driving Car Kill the Baby or the Grandma? Depends on Where You’re From
Karen Hao | MIT Technology Review
“The researchers never predicted the experiment’s viral reception. Four years after the platform went live, millions of people in 233 countries and territories have logged 40 million decisions, making it one of the largest studies ever done on global moral preferences.”

TECHNOLOGY
The Rodney Brooks Rules for Predicting a Technology’s Success
Rodney Brooks | IEEE Spectrum
“Building electric cars and reusable rockets is fairly easy. Building a nuclear fusion reactor, flying cars, self-driving cars, or a Hyperloop system is very hard. What makes the difference?”

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#433725 This Week’s Awesome Stories From ...

ROBOTICS
The Demise of Rethink Robotics Shows How Hard It Is to Make Machines Truly Smart
Will Knight | MIT Technology Review
“There’s growing interest in using recent advances in AI to make industrial robots a lot smarter and more useful. …But look carefully and you’ll see that these technologies are at a very early stage, and that deploying them commercially could prove extremely challenging. The demise of Rethink doesn’t mean industrial robotics isn’t flourishing, or that AI-driven advances won’t come about. But it shows just how hard doing real innovation in robotics can be.”

SCIENCE
The Human Cell Atlas Is Biologists’ Latest Grand Project
Megan Molteni | Wired
“Dubbed the Human Cell Atlas, the project intends to catalog all of the estimated 37 trillion cells that make up a human body. …By decoding the genes active in single cells, pegging different cell types to a specific address in the body, and tracing the molecular circuits between them, participating researchers plan to create a more comprehensive map of human biology than has ever existed before.”

TRANSPORTATION
US Will Rewrite Safety Rules to Permit Fully Driverless Cars on Public Roads
Andrew J. Hawkins | The Verge
“Under current US safety rules, a motor vehicle must have traditional controls, like a steering wheel, mirrors, and foot pedals, before it is allowed to operate on public roads. But that could all change under a new plan released on Thursday by the Department of Transportation that’s intended to open the floodgates for fully driverless cars.”

ARTIFICIAL INTELLIGENCE
When an AI Goes Full Jack Kerouac
Brian Merchant | The Atlantic
“By the end of the four-day trip, receipts emblazoned with artificially intelligent prose would cover the floor of the car. …it is a hallucinatory, oddly illuminating account of a bot’s life on the interstate; the Electric Kool-Aid Acid Test meets Google Street View, narrated by Siri.”

FUTURE OF FOOD
New Autonomous Farm Wants to Produce Food Without Human Workers
Erin Winick | MIT Technology Review
“As the firm’s cofounder Brandon Alexander puts it: ‘We are a farm and will always be a farm.’ But it’s no ordinary farm. For starters, the company’s 15 human employees share their work space with robots who quietly go about the business of tending rows and rows of leafy greens.”

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#433539 This Week’s Awesome Stories From ...

ROBOTICS
Meet the Winner of Robotics’ World Cup
Editorial Staff | MIT Technology Review
“If you are under the impression that the recent soccer World Cup was won by a fine French team that triumphed over Croatia in a dramatic finale, then you were watching the wrong tournament. At about the same time, on the other side of the world in Montreal, another tournament was also under way. This was the soccer World Cup for adult-size robots.”

MOONSHOTS
SpaceX’s Moon Trip Is the Ultimate Artist Residency
Marina Koren | The Atlantic
“If SpaceX’s latest ambitions become a reality, a spaceship carrying one Japanese billionaire and six to eight artists will blast off from Earth and head for a trip around the moon sometime around 2023.”

FUTURE OF WORK
Emerging Tech Will Create More Jobs Than It Kills by 2020, World Economic Forum Predicts
George Dvorsky | Gizmodo
“The big question many of us are asking now is: Will job losses outweigh job creation in the coming years and decades? If a new World Economic Forum (WEF) report is to be believed, emerging tech will create more jobs than it destroys. At least for the next four years.”

GENETICS
Why Your DNA Is Still Uncharted Territory
Carl Zimmer | The New York Times
“If these trends continue as they have for decades, the human genome will remain a terra incognito for a long time. At this rate, it would take a century or longer for scientists to publish at least one paper on every one of our 20,000 genes.”

SPACE
Satellite Uses Giant Net to Practice Capturing Space Junk
Loren Grush | The Verge
“Along with experimenting with a deployable net, the satellite is also equipped with a harpoon that can spear objects, as well as a drag sail that can help slow down debris and make them fall to Earth faster. The plan is to see if these technologies can even work, before trying them out on future spacecraft that are tasked with cleaning up debris.”

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#433296 New Engineering Journal from Annual ...

The inaugural volume of the Annual Review of Control, Robotics, and Autonomous Systems is now available online! Continue reading

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