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It’s rare that we see an advertising campaign embrace a jobs-to-be-done approach as clearly as the one recently executed by Yellowbook and its partner, ad agency Gotham.

Printed Yellow Pages directories, such as those published by Yellowbook, were once the dominant source of local business contact information. The Internet, a constantly updated, interactive source of information, is now forcing Yellow Pages publishers to rethink their positioning and indeed, their relevance. Many consumers, it seems, continue to think of its iconic yellow-paper directory, for example, when they think of Yellowbook.

Desiring to change the way consumers think of its product, Yellowbook launched a new ad campaign last week. The first two television ads, which can be viewed here, show two individuals using a Yellowbook online site to seek basic solutions to superficial problems. The ads then reveal the true concern (job) that each individual is really seeking to address.

In the first ad, a kid searching for martial arts is really seeking self-confidence. In the second ad, a bride searching for help removing an old tattoo is really seeking a fresh start.

It seems possible that this window into the true inner concerns of the participants may elicit an emotional response from viewers who may, in turn, use yellowbook.com to find solutions to their own inner concerns. Despite this use of jobs in its advertising campaign, however, the yellowbook.com directory remains organized as a printed Yellow Pages directory, searchable by basic vertical category. Perhaps an opportunity exists for the site to implement a jobs-based search feature in the future — I wonder what price businesses would pay to be the first result returned by a search for "self-confidence"? 

If you work in a large company and you want to become humble quickly, check out Stall Points, a fascinating stream of research by the Corporate Executive Board that was recently a cover story for the Harvard Business Review. The research shows that almost all companies hit a point where historical growth rates decelerate. Once the corporate growth engine stalls, it is very hard to restart.

The study involved close to 500 companies that have appeared on the Fortune 100 or international equivalents over the past 50 years. Close to 90 percent of those companies experienced a stall, or “secular reversals in company growth fortunes.” Only 50 percent of companies that stalled were able to grow even moderately over the next decade.

There are many reasons why growth becomes increasingly difficult as a company grows. One challenge is that the hurdle for new initiatives becomes so high that many potential game-changing initiatives never see the light of day.

A few weeks ago I was with a group of senior executives at a Fortune 100 company. We were talking about the strategic objectives of that company’s innovation efforts. One executive said that $1 billion felt like a reasonable target for a generic new growth initiative. Another said, “A billion is nice, but at our size we really need to set the target at $10 billion.”

Mathematically, of course, the executive is right. It got me thinking, though. Only 261 public U.S. companies had $10 billion in revenues last year. How many of the high-flying start-up companies over the last decade reached $10 billion in revenue in 10 years? Well, Google hit $10 billion in its eighth year (2006) and … I think that’s it.  …

Read the rest at Scott's Harvard Management blog, Innovation Insights

As summer approaches, soon you will no longer have to venture off to the ice cream store for a treat. Taunton, MA-based MooBella offers a vending machine that creates a fresh scoop of ice cream for under $3 in under one minute.  Moo-bella is essentially “competing against non-consumption” as they expand the opportunities for consumers to enjoy fresh ice cream, and enable restaurateurs and cafeteria operators to expand their sales with a new offering without sacrificing the floor space or labor that is traditionally needed.

As MooBella has delayed its roll-out, I suspect the company is struggling with its launch plans for this new product. We would urge them to initially launch an offering that is “good-enough” by focusing their launch on bringing a tasty offering with limited flavor selection to market in a controlled environment. Their current plan to launch within existing food-service locations fits such a strategy; the operators can perform minor maintenance and collect payments while providing MooBella with feedback on how to adjust their future vending machines and product offerings. Armed with the knowledge from these market tests, MooBella can then look to improve its product on other dimensions by launching new flavors or developing a truly self-service machine that requires no maintenance and can accept payments.

There's also an important lesson here for traditional ice-cream retailers who may not initially view MooBella as a competitor. To find new opportunities for market growth, you need to continually go beyond new product introductions and look at the circumstances in which consumers can consume your product. While ice cream shops offer a unique family experience, MooBella can become a more potent disruptive force by partnering with restaurateurs and foodservice operators to offer different experiences in various circumstances.

With the Eee Surf, ASUS wisely trades power and functionality for simplicity and a low price, a disruptive play that should find its way into many homes as a second computer.

I learned about the ASUS Eee PC 2G Surf laptop on a recent flight. The passenger next to me opened up the airline magazine and pointed out to me a small, really sharp looking laptop that sells for under $300. The computer was designed by ASUS and Intel and is known for its combination of light weight, Linux-based operating system, Wi-Fi capability, solid-state drive (like an iPod Nano) and relatively low cost. He said he wished he had known about the ASUS Surf before because it would have made for a great second home computer for his wife and young children.

We applaud ASUS for developing a product that is targeted at a clear job to be done – provide easy access to the web and prevent household fights over the primary PC (and Internet connection).

This product breaks down two key barriers that currently prevent more people from using laptops – complexity and cost. According to Laptop magazine, the laptop is “ten times simpler to use than any Windows machine, starts up twice as fast and is about one fifth the cost of other systems in its weight class”. The interface offers only six easy-to-understand options: Internet, Work, Learn, Play, Settings and Favorite.  Since the computer runs on Linux (which is free) it keeps the price of the product down (no Microsoft licenses).

Of course, breaking down the barriers of complexity and cost requires trade-offs that won’t satisfy everybody. It is hard to load new applications, skimps on internal memory (only 300 MB of the 2GB solid-state drive is free) and won’t impress tech savvy folks with its specs, but like many disruptive innovations, it meets an important and unsatisfied job to be done. Need a low-cost, easy to use computer to prevent your kids from fighting for Internet time? ASUS has the right PC for you.

In May, Nintendo will seek to expand its successful strategy of expanding the video game market by launching the U.S. version of “Wii Fit.” All signs suggest that Nintendo’s strategy of “competing against nonconsumption” will continue to thrive.

Nintendo’s strategy has long been one of our favorites. While Microsoft (who makes the Xbox 360) and Sony (who makes the Playstation 3) are locked in an arm’s race to provide cutting-edge game play to demanding customers, Nintendo is trying to reach new customers.

Arguably Nintendo’s first breakthrough success with this market expansion strategy was “Brain Age.” The handheld game targeted Baby Boomers who wanted an easy way to combat the effects of aging on their mental acuity—hardly the typical gamer market!

In 2006 Nintendo launched the Wii. The console’s innovative, intuitive controller makes video game playing so simple that my two-year old son can play the baseball game (admittedly not particular well).

Nintendo’s strategy is not accidental. CEO Satoru Iwata said “Some people put their money on the screen, but we decided to spend ours on the gaming experience. It’s an investment … not simply to improve the market—but to disrupt it.” 

We call this sort of strategy “competing against nonconsumption” …

Read the rest at Scott's Harvard Management blog, Innovation Insights