Entries Tagged 'trends' ↓

There’s been an explosion of interest in new “startup accelerators,” incubation, coworking, startup funding, and new-manufacturing efforts in Baltimore in the last few months; unfortunately this appears to say less about Baltimore than it does about the growth in interest in these efforts worldwide.

Here’s a list of some efforts in this space:

• “Accelerate Baltimore” at ETC Baltimore
• Accelerator led by Cangialosi and Lane
• ETC Baltimore itself (Canton and 33rd street)
• Baltimore Node, Hackerspace on North Avenue
• Sizeable Spaces, coworking in South Baltimore
• Capital Studios, coworking on Central Avenue
• Beehive Baltimore, coworking at ETC Baltimore
• Accelerator effort being driven by Mike Brenner
• Accelerator/cyber/techspace in Harbor East, led by Karl Gumtow
• Innovation Alliance effort being led by Newt Fowler
• Theater/workspace being discussed by Chris Ashworth/Figure 53
• Shared warehouse workspace being discussed by Andy Mangold/Friends of the Web
• Baltimore Angels (Cangialosi et al)
• Invest Maryland fund (DBED)
• TEDCO’s Innovation fund
• Abell Foundation fund (tied to Accelerate Baltimore)
• Wasabi Ventures fund (investing in city, affiliated with Loyola)
• Fabrication Lab at Towson University
• Fabrication Lab at CCBC
• Fab-lab ideas discussed by John Cutonilli
• Highlandtown workspace development led by Ben Walsh
• Mike Galiazzo, pushing Local-Made, (head, Regional Manufacturing Institute)

Did you know about all of these things? Amazingly, many of the people leading these efforts don’t. Or if they do, they’ve not actually talked to the people involved. To me, this is a problem.

Why? Because folks attempting to gather support for these efforts don’t have all the facts. They either haven’t sat down and listened to people’s motivations, and they’re flying blind. Or it means that they have been unable to sell other like-minded entrepreneurs on their vision, which probably means their vision is not that compelling. And that’s even worse.

But this is not all that’s wrong.

Two Serious Problems

One: there’s a tremendous amount of duplication of effort represented in the list above. Why duplicate all of that administrative, accounting, legal, and governance overhead? By pooling more of these efforts together, that overhead can be minimized and shared.

Two: we don’t have enough human capital to support all of these different efforts. We simply DON’T. Many seem to think it will somehow materialize, but from where I sit, with possibly the widest-angle view of the landscape here of anyone, I don’t see that flow of new startups or even new individuals that can support all of this. It just doesn’t exist.

The Opportunity

Baltimore has an opportunity to become a regional and even international destination for people looking to start or join entrepreneurial enterprises. But for that to happen, we need to have stuff here that can actually become a destination.

And unfortunately, the efforts currently underway are not likely to become that destination because duplicated overhead will keep each effort small and parochial.

However, if more of these efforts pooled their resources and talent – and most importantly identified a BIGGER and more IMPORTANT vision for what it is they are trying to achieve, there would be many positive effects, such as ample governmental and foundation support. And that would be hugely helpful in funneling in the sorely lacking regional and international *human capital* that we so desperately need here!

One Possible Vision

Baltimore has an opportunity to become the hub for digital manufacturing and mass-customization technology on the east coast.

Cangialosi and Lane are already talking about supporting some basic fabrication capabilities at their proposed facility on Key Highway. Gumtow’s effort has placed fab-lab capabilities high on its priorities list. CCBC and Towson have fab-labs, though it’s my understanding they may be underutilized. If you’re going to spend money on fabrication equipment at all, it should be utilized 24×7 in order to maximize the asset.

Something bigger – like taking over the WalMart in Port Covington, or the Meyer Seed Warehouse in Harbor East – could support an accelerator, fab lab, and shared workspace. Thinking a little bit bigger would also have the effect of lowering per-square-foot costs dramatically, and even dramatically altering the real-estate ownership structure.

Baltimore is already home to Under Armour, and at some point in the near future (similar to what happened with Ad.com) it will start throwing off new entrepreneurs with experience in consumer products and manufacturing. Where will they go? Will we keep them here in Baltimore?

Focusing on the intersection of manufacturing and technology is important because it represents the one shot we have at rebuilding even a little bit of a middle class here in Baltimore. Because of that, you’ll find abundant support for such efforts — support that can further reinforce Baltimore’s reputation as an international destination for digital and manufacturing.

The More the Merrier?

I am a fan of placing many, diverse bets rather than making a few large ones. But it’s also important to make strong bets. Unfortunately, Baltimore is right now setting itself up to have many weak positions instead of a smaller number of stronger ones.

I strongly urge the folks leading these efforts to get to know each other and coalesce around a bigger unifying vision that can turn Baltimore into an important regional and international destination for entrepreneurs.

Because without agreeing on a bigger vision, it’s likely that these efforts – each led by well-meaning individuals but with individual motivations – won’t ultimately amount to much, and it would be a shame to waste so much time, effort, and talent.

For the many of us who are anxious to move beyond the broken status quo in Baltimore, yesterday’s primary election was disappointing and frustrating.

Still, there’s a lot of valuable information to be gleaned that helps us build a better map of Baltimore’s electorate – from its many problems to its deep divisions.

• Turnout was pathetically low: 70,416 of 380,000 (18.5%). Some have said that “the issues didn’t resonate with voters,” and that could be true. However, a bigger trend to watch for is the decline of turnout generally. Many “seniors,” who made up the core of the voting population, are now dead or dying. How will we address this trend?
• Voters are either displeased with, or not sure about, Rawlings-Blake’s leadership. 48% of voters felt we are definitely on the wrong track with Stephanie Rawlings-Blake. Many more aren’t sure, but wanted to give her a chance with a full term in office. And there are 310,000 other voters who must feel so disconnected that they declined to express any opinion at all. There is no mandate here.
• Otis Rolley swept the online progressive community. Any observer of the online world would have told you that Otis would have won in a landslide; his supporters kept a steady drumbeat on Twitter, Facebook, and on blogs throughout the campaign, and especially election day. But however strong he may have been in that community, he garnered just shy of 9,000 votes. No other candidate received any measurable online presence. This is further proof of Baltimore’s deep digital divide.
• Too many candidates spoil the race. This would have been a very different race if Rolley, Pugh, Landers and Conaway had teamed up to challenge the Mayor. Pugh had nothing to lose by running; she keeps her Senate seat. Landers could have assisted Rolley with his tax plan. Conaway had no business being in the race at all. A two-way race between a Pugh-endorsed Rolley and Rawlings-Blake would have had a very different donor make-up, would have told a different story in the press, and would have had a different outcome.
• Name recognition still carries weight. Dithering City Councilman Carl Stokes won again in the 12th district, despite a strong and credible challenge from the earnest and organized Odette Ramos. “Pistol Pete” Welch held his (inherited) seat, despite challenges from Abigail Breiseth and Christopher Taylor. These were both split-field races against “name brand” incumbents that also demonstrated the persistent racial divides in Baltimore.
• Foolishness and incompetence will eventually get you booted. In a bright spot, it was nothing short of refreshing to see that Belinda Conaway was ousted from her seat by newcomer Nick Mosby. Conaway, in suing blogger Adam Meister for $21M (for his factual articles about her place of residence), spurred Mosby to run, and he won – 2,747 to 2099. One bear down, two to go.
• City Council is broken. Baltimore’s system of government has a strong executive (Mayor) and a weak legislature (City Council). The City Council has been such a refuge of scoundrels that few want to be associated with it. Some suggested that Landers or Rolley should run for City Council president as a way to some day be mayor. Frankly, I wouldn’t trust a Mayoral candidate that was coming from City Council. There’s too much incompetence and corruption.
• Our elections are broken. It’s ridiculous that our choice of Mayor would be made in a September primary, but with no viable Republican or Independent candidates, it’s the way things are. We need to get open primaries, or hold a run-off in November. My understanding is that this can be changed via petition and referendum, which means it is doable outside of the current political structure. This needs to be pursued immediately. Too many voters were disenfranchised in this process, and it’s unreasonable to ask people to switch parties in order to vote.
• The Mayor spent (wasted?) roughly $2 Million on just 37,000 votes. In an election with just 71,000 votes cast, nearly $4 Million was spent. In a real way, the Mayor (and her tax-break seeking contributors) bought the election. The cost in the end to her was roughly $54 per vote. In a city with so much pain and brokenness, I find this morally repugnant. It’s worth nothing that Otis Rolley also spent roughly $50 per vote, so this metric is not a coincidence. It’s the “acquisition cost” of a vote in a top-tier modern Baltimore City election. We need to focus on lowering that cost.
• The incumbent Mayor always wins. This is because the incumbent Mayor influences city business, and city contractors and developers know Baltimore is a “pay to play” town. They pay, they get favors. This allows the incumbent to buy votes – for $54 each.
• Kiefaber was the favorite protest vote. Tom Kiefaber, the embattled former owner of the Senator Theater, who has been raising red flags about Baltimore Development Corporation (and interrupting City Council meetings) was the runner-up protest vote in the contest for City Council president with 5,390 votes. While Jack Young won in a landslide, the fact that a candidate like Kiefaber could get any traction at all shows just how deeply folks distrust – and ridicule – that body and its leadership.
• The Sun missed a chance to create a better horse race. Jody Landers was right to complain that only 2 of the 5 members of the Sun Editorial board live in the city; there is also only one African American. If the Sun is going to pretend to have opinions relevant to city residents, those ideas should come from people that will have to live with the consequences. The editorial bent of the Sun’s coverage did not develop any kind of horse race between candidates, and frankly seemed to be pushing for the incumbent all along. In my opinion this was not just bad for Baltimore, but bad for business for the Sun. How many more papers could they have sold by developing a more compelling narrative?

Those of you that know me know that my support for Otis Rolley was born out of a belief that Baltimore is worth fighting for, and that Baltimore deserves better. I share that belief with Otis, and with Tom Loveland, Aaron Meisner, Brian LeGette, Terry Meyerhoff Rubenstein, and so many others who supported his campaign. I supported Otis because of my beliefs; my beliefs are not shaped because of my support of Otis.

This is an important distinction. Too often when folks think “politics” they think it’s about pitting candidates against each other, and insider interests and gaining financial advantage. But in this case, that has nothing to do with it. I simply believe that we are on the wrong track and that we can do better. I have nothing to gain in my support of Otis – unless you count living in a city that might have a shot at being strong again, and one where its leaders listen to citizens.

But we also learned something else. It’s tempting to think that real change can occur through online organizing and Twitter and Facebook and the coming-alive of the “new” Baltimore or the youth vote, or via SMS messages or what have you. And sure, those things will play a part in any election going forward.

But the most important lesson is that Baltimore is a city of tribes: poor, rich, black, white, Hispanic, digital, homeless, addicted, corrupt, idealistic, and blue-collar – to name only a few. Few of us ever break out of our own tribe. We surround ourselves with our own points-of-view and hear what we want to hear.

For Baltimore to grow, we need to break free of our tribes. We need to be occasionally uncomfortable. We need to do real public service, and build up the kind of roots in our community that ultimately allow meaningful change to occur.

As Otis said last night, this is just the beginning of a campaign to take back our city and stand up for Baltimore’s future. But that won’t be easy. Done right, it will make us uncomfortable, as we reach out across tribes. It will take serious commitment, and much more than “Likes” on Facebook.

In the end, it will require our full and unconditional love – of our fellow citizens, and our city.

A lot of people talk about innovation in terms of fulfilling an unmet market need. Specifically, there’s a lot of emphasis on “solving problems.” (I’m looking at you, Dave McClure.) The theory is that entrepreneurs should work on solving a problem that lots of people have, and not get too focused on some technology. That’s fair advice.

However, when entrepreneurs hear this, their first instinct is to often to go ask people about their problems and then try to solve them. Or they look for markets where there is a lot of money being spent.

“The best innovations are those that solve a problem that people didn’t even know that they had,” says Paola Antonelli, curator of design and architecture at MoMA. Twitter certainly falls in this category. In fact most people were sure they didn’t need Twitter, but now it’s a central part of our media landscape.

This class of innovation is the sort you have to shove down people’s throats at first, but then changes the world forever. And they’re tricky to find because no one will tell you they need them. And there’s no market study that outlines the opportunity.

Thinking about this, and stealing some good ideas from design thinking pioneers like Don Norman, Tim Brown, and Daniel Pink, I’ve settled on four key elements that entrepreneurs can use to think about innovation: design, affordances, emergence, and appeal.

Design

Steve Jobs is famously quoted as saying, “design is how it works,” and he’s right. How it works is determined by the design specifications and constraints. If it is software, the major design elements include aspects like synchronous vs. asynchronous, private vs. public, one-to-one vs. one-to-many vs. many-to-many, market size, viral reach, and mode of access. There are many other elements that determine the nature of a product’s design.

The outward aspects – how it looks and feels – are important insofar as they impose an additional set of operational constraints: what’s possible, what’s most likely, how the “happy path” feels, and how brittle the experience is.

When most people think about design, they think about “how it looks.” We’ll get to that in a minute. When you think about design, you really are determining “how it works,” and it’s the most critical part of creating an innovative product.

Affordances

Affordances are the possibilities that a particular design allows. If your product allows for a particular use, then its design affords that possibility. Sometimes there are negative affordances (a part allows for a hinge to open too widely, possibly damaging the product), as well as positive affordances (an iPod Touch can display streaming video, so it afforded the possibility for HBO to make a mobile subscription TV app.)

Every design offers a wide range of affordances, and you should think critically about what they are.

Emergence

Sometimes a design enables new behaviors that its creators did not predict. Users of the product start behaving in a new way that was not anticipated, though it is allowed by the original affordances (say hashtags on Twitter).

Sometimes the emergent behavior is incorporated back into the original design (such as when Twitter adopted hashtags and @ replies, and tracked their trends).

Emergence is usually a happy accident. Biz Stone, co-founder of Twitter, says, “always allow a seat at the table for the unknown.” That is an excellent design goal. By leaving a few doors open, one allows for this kind of emergent behavior to occur, and to capitalize on it.

Designers almost never consider all of the emergent possibilities that their designs afford. Being open to emergence, and incorporating it into later designs, is key to innovation.

Appeal

This is really a subset of design, but it’s worth discussing all by itself. Your product should have curb appeal and create an emotional connection with people that causes them to return to it again and again.

The finest Swiss clockwork will not go anywhere if it is packaged in an ugly shell. While design is “how it works,” your product’s human appeal has everything to do with “how it works with people.” Because without ongoing engagement from people, most products cannot survive.

So, how it “looks” certainly matters, but only insofar as it affects its ongoing appeal, and “how it works with people.” We know the best products are those that create that emotional, nearly-religious connection, and this can’t be overlooked.

Utility Is Difficult to Predict

I think asking about utility is often the worst way to evaluate a design in its early phases. “Why would I use this? What’s it good for? Who needs this?” are questions that are worth contemplating, but it’s also OK if the answer is “I don’t know yet.”

If a design affords a range of emergent behaviors, if it can be distributed to a large group of users, and it can be made appealing and inspire devotion, odds are it’s something worth experimenting with. The odds that the ultimate utility of an interesting design will exceed early predictions is very high.

I love engineers, and do some engineering, but engineers are particularly prone to evaluate concepts in the frame of “how is it different from XYZ that already exists,” or “what technology does it employ?”

The success of the Wii is one of the wins that stymied many engineers. “The graphics sucked, the games were primitive, and there were better technologies on the market.” And those things were not the point. The Wii won because of its design, it affordances, its appeal, and the emergent behaviors (and user communities) it enabled and reached.

So be playful in your designs. Give things a chance. See what happens. Learn from emergent behaviors. And always leave a seat at the table for the unknown.

Combinatorial Innovation

There are so many new technologies today: tablets, geolocation, video chat, great app frameworks. It is easy to cherry-pick off “combinatorial” innovations that seem compelling, and can maybe even be monetized readily.

But all those innovations are inevitable. If our technologies afford a certain possibility, they will occur. “That’s not a company, that’s a feature,” is one criticism I’ve heard of many “startups.”

These combinatorial, feature-oriented “X for Y” endeavors are often attractive because they can often be built quickly.

Startup Weekend events send an implicit message that a meaningful business can be fleshed out in just a couple of days. And I argue that is not true. That might be a good forum to get practice with building a quick combinatorial technology and working with others, but a real innovation, much less a meaningful business, takes real time.

I think people are often looking in the wrong places for innovation, often because they don’t really take the time to do the homework, observation, and deep reflection necessary to arrive at a true insight. We want things to be quick and easy.

Changing Minds, and Behaviors

The biggest innovations require asking people to change their beliefs, habits, and behaviors.

iPhone: “why would I want a smartphone without a physical keyboard? It’s too expensive. I can’t install apps.”

Twitter: “what is this for? Why would anyone do this? Who cares what I had for breakfast?”

iPad: “an expensive toy. Could never replace a real laptop. Can’t run real office applications. The enterprise will never adopt it.”

Foursquare: “only hipsters and bar hoppers would ever do this. They are letting people know when to rob them. I don’t want people to know where I am.”

And these innovations have taken years of constant attention to bring to their current state. And they are not done.

One Innovator’s Story

Dennis Crowley, founder of Foursquare, was in the room at Wherecamp in 2007 where I was giving a talk about location check-in habits via Twitter (a subject I knew well because of my Twittervision service, which allowed this.)

Dennis, of course, also founded the precursor to Foursquare, Dodgeball, which he sold to Google in 2004 (they promptly killed it.)

But Dennis wanted to see his vision come to pass, and he knew it would someday be possible — though at that point the iPhone had not been released and it would be nearly two years before it supported GPS location technology.

But there Dennis was, doing his homework in 2007, studying user behavior to figure out exactly what behaviors he would have to encourage to make Foursquare work.

He asked me, “so, people are really putting their home and work locations formatted inside tweets in order to update their location?”

“Yep, a few thousand times a day,” I replied.

“That’s cool. That’s really cool stuff,” he said. And from that, and years of similar evidence-gathering and study, Foursquare would be born.

So, creating Foursquare took about five years. (I could have “stolen” the idea and built Foursquare myself. But I didn’t execute on that; it was his vision to pursue.) Dennis did his homework. He was prepared. And his vision preceded the technology that enabled it.

Why, not How

Real innovation doesn’t come from a weekend. It comes from passion, years of study, understanding deep insights and the “why,” and persistence in seeing something new to market, along with the marketing and cheerleading that will make it successful.

The iPad owes much to Steve Jobs’ love of calligraphy. He cultivated a sense of aesthetics because of that initial interest. He didn’t set out to “make money” but rather dedicated himself to changing the world for the better using the entirety of his humanity. Time studying art wasn’t “lost,” it was R&D for the Mac, iPhone, and iPad.

Many of today’s entrepreneurs could stand to do less “hustling” and more reading, exploring, reflecting, and gathering input — and when it is time to make stuff, set their sights as high as possible.

There is more to this world than money, and there are countless opportunities to make it a vastly better place. Rather than using our CPU cycles just playing with combinatorial innovations, let’s devote ourselves to making the world as amazing as possible. Try to take time to reflect on how you can make the world better, and not just on what current technology affords.