Tuesday, October 13, 2009

Innovation and Technology

Dictionary.com defines innovation as “the introduction of new things and methods.” However, I have a more specific definition of innovation. Besides being “new,” I believe the method needs to be meaningful based on the purpose it’s trying to achieve. A good example of an innovative service is the personalized Google ads that run along the right side of your gmail screen. Before these ads existed, Amazon already had the “suggestions list,” recommending other books you might like based on your browse history. Similarly, the interesting thing about the gmail feature is that these ads correspond directly to the content of any given email.
For a long time, I didn’t know that those ads were “personalized” until one day, my friend mentioned as he was checking his gmail, “Aren’t these ads freaky?” It was only then that I realized that all the photography ads on the side panel of my email weren’t due to photography’s sudden popularity. (I do photography and therefore sometimes mention the topic in my emails.) After that, I began to pay more attention to those ads, and it made me laugh one day to see a panel full of therapy and anti-depressant ads on my gmail account just because I had lightly mentioned something about feeling “depressed” (an exaggerated use of the word) that particular day.
The reason this service is innovative is because it’s an easy way to catch a viewer’s attention—put up ads about topics they’ve mentioned! This idea is intuitive and may even seem obvious, but it’s the recent advent of certain technology that has made this technique feasible. As “The New, Faster Face of Innovation” discusses, technology is transforming and facilitating innovation. It’s getting easier and cheaper to test ideas on consumers. The article mentions that Google surveyed viewers about their satisfaction with the number of available search results. Although the viewers wanted more search results, Google overcompensated with too many search results, which led to decreased traffic. It turns out that consumers are complex. We want variety and choices, but we want relevancy and speed too!
Similarly, Google has probably conducted tests and surveys to see how effective the targeted ads are. Since they’ve been around for a long time, I’d assume that enough people click on these ads to justify the continued use of this method. It would be interesting to understand Google’s rationale behind this service. It doesn’t seem like it’s aimed at benefiting users so much as it’s intended to benefit companies who pay to put their ads on Google. However, I might be wrong. A key insight could very well be that users like me are attracted to products and services that “know us.” With all the choices on the market these days, it’s getting increasingly more important to personalize not only the functionality of products and services to a targeted consumer group, but also to personalize that message.
Users may enjoy using Google features such as gmail because there’s comfort and convenience in a service that’s set up just the way you like it, with ads about relevant topics you’re interested in. This is the same reason why I enjoy using Amazon.com—those suggestions tend to be pretty accurate. The article mentions that technology has enabled companies to keep up with trends more closely. We definitely see this phenomenon with online companies such as Google and Amazon—one firm may be the pioneer of some new idea (e.g. targeted ads/suggestions), but soon, many firms will follow.
I believe that the gmail ads are innovative because previously ads were broadcasted to the population at large. That may have been alright in the 1950’s, but with today’s choices and communication clutter, it’s absolutely crucial to create a “bond” between the consumer and the product/service they’re using.