How corporations can implement meaningful innovation, according to this Houston expert

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Corporations can do more than just throw money at innovation efforts. Photo via Getty Images

I vividly remember, it was a typical Tuesday at Houston Exponential, and I’m sipping maybe my third coffee of the morning when the phone rings.

On the line is yet another hopeful voice from a newly minted innovation group at a "big company." They lay out their vision: “We’ve got this new innovation group! It’s me — a tech enthusiast who’s been yelling into the corporate void about needing to shake things up for the last two decades — plus a data scientist who loves numbers more than people, and a procurement guy who… well, procures stuff. And here’s the kicker: they’ve handed us $60 million to put to work. But here’s the catch — this treasure needs to be turned into a groundbreaking innovation that will dazzle the C-Suite, in about six months.”

I chuckle then sigh, because I’ve heard this story not once or twice, but about a dozen times over. And unfortunately, each of those grand plans crashed faster than a shooting star burning out over the Texas night sky — brilliant, swift, and leaving us wondering what might have been. Why? Well, let’s dig into some observations from my time working with institutional innovators from around the world and uncover just why throwing money at innovation like confetti at a wedding isn’t the quick fix big companies hope it will be.

The big miss here is a deep understanding of and ability to articulate the challenges. Innovation isn’t a highway where you can just press the gas and speed straight to Mt. Scale. It’s more like a winding country road with breathtaking views, unexpected potholes, and the occasional bewildered chicken crossing your path. For institutional innovators — the brave souls charting the course through this ever-changing landscape — the journey is filled with excitement, challenges, and the promise of discovery.

In my first hand experience mentoring over 500 startups and corporations, I’ve seen that the magic of innovation doesn’t come from a deep-pocketed budget but from a deep understanding of the problems we aim to solve. If you can view challenges through a kaleidoscope of perspectives, not just through the monochrome lens of one industry, you find the alternate routes that, while not exactly shortcuts, do keep you from turning down dark alleys and dead ends. A key observation here is that solutions to hard problems often lie in adjacent industries.

For example, consider how biomimicry has led to inventions like Velcro, inspired by burrs' ability to stick to animal fur, or how bullet trains in Japan were designed to mimic the kingfisher's beak for better aerodynamics. These are just a few examples of how solutions to complex problems often reside right in front of us or in the industry next door. Right here in Houston, Pumps & Pipes is a glowing example of how experts from Energy, Life Science and Space converge on similar problem sets with wildly different perspectives and applications.

Imagine if the engineers at NASA sat down for tacos with teachers from the local high school, or if doctors brainstormed with video game designers over a game of pickleball. Sounds fun, right? But it’s also where the magic happens. When we step out of our industry bubbles, we find that the solutions to our biggest problems often come from the most unexpected places.

So how do we begin to find these solutions? It all starts with a clear and clearly articulated challenge statement.

A crucial factor in encouraging organizations to look beyond traditional industry boundaries is to foster a deep understanding of problem-solution fit (you can read more about Problem - Solution fit in my last article here) and that means a deep understanding of the Problem. By guiding problem holders to dig deep into the nuances of the problems they aim to address, we expand their perspective. Once a comprehensive grasp of the problems are established, new pathways for solutions organically emerge. To do this you must broaden the collective thinking to the point where solutions from other industries become not just viable but often the most effective approach. My favorite quote on this subject is that “people don’t need a ¼ inch drill bit, they need a ¼ inch hole, and really they don’t need a ¼ hole, they need to hang a picture and when framed in that context, a command strip is more effective at solving the problem.”

So how do we do this? It’s easy, just continuously ask "why" or “why does this matter to your customer” to peel back the layers of the initial problem statements to reveal underlying causes or first principles. Ok this is actually much harder than it sounds but when organizations are guided through exercises to distill their challenges into first principles and more universal problem statements, a transformation occurs, resulting in several benefits:

  1. Expanding Solution Horizons: By elevating the problem discussion beyond industry-specific issues, the range of potential solutions widens remarkably.
  2. Universal Problem Statements: Restating the issues into more universal terms unlocks innovative approaches and solutions previously unseen.
  3. Enhanced Solution Fit and Success Probability: This reframing leads to solutions that are not only more fitting but also stand a higher chance of successfully being adopted and integrated and thus resolving the underlying issues.
  4. Increased Buy-In: These solutions are and are perceived as more novel and thus receive increased buy-in across the organization when moving towards adoption.

The critical lesson here is the power of abstracting the problem. By pulling back from the immediate and specific issues and reinterpreting them into broader, more universally applicable challenges, we can tap into a richer vein of solutions. This approach not only broadens the scope of potential innovations but also increases the alignment and effectiveness of the solutions we pursue.

The art of crafting challenge statements that are both broad enough to inspire innovative thinking and specific enough to be actionable is crucial. These statements serve as beacons, guiding both internal and external innovation efforts towards solutions that are not bound by conventional industry norms. By framing challenges in a way that invites diverse perspectives, organizations unlock innovative solutions that transcend traditional boundaries, fostering a more expansive and inclusive approach to problem-solving.

Turning lofty ambitions into tangible results begins with understanding that innovation isn’t just about flashy gadgets or the latest buzzwords. It’s about solving real problems for real people. This means rolling up our sleeves, listening intently, and sometimes realizing that the solution isn’t a high-tech wonder but perhaps something as simple and elegant as a command strip instead of a hole in the wall.

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Jon Nordby is managing partner at Anthropy Partners, a Houston-based investment firm, and professor of entrepreneurship at the University of Houston.

A new program within Rice University's Executive Education school will foster education for corporate innovation. Photo courtesy of Rice

New program at Rice University to educate corporate leaders on innovation

tables have turned

As important as it is to foster innovation among startups, there's another side of the equation that needs to be addressed, and a new program at Rice University plans to do exactly that.

Executive Education at Rice University's Jones Graduate School of Business, which creates peer-based learning and professional programs for business leaders, has created a new program called Corporate Innovation. The program came about as Executive Education, which has existed since the '70s, has evolved over the past few years to create courses and programs that equip business leaders with key management tools in a holistic way.

"We realized we need to open the innovation box," says Zoran Perunovic, director of Executive Education and is also a member of the Innovation Corridor committee and a mentor at TMCx.

The program, which is open for registration and will take place September 28-30, will flip the script on how innovation is normally discussed and observed and instead take a holistic approach to innovation in a corporate setting.

"In the innovation space, you have two lines — one is the entrepreneurial and the other is happening in large, established organizations," Perunovic tells InnovationMap. "The mechanisms of innovation within in those companies are different than the entrepreneurial."

The course's professor is Jing Zhou, Mary Gibbs Jones Professor of Management and Psychology – Organizational Behavior, and she says that when people think "innovation" they think of startups or technology. However, when it comes to innovation at the corporate level, it's so much more than that.

"In the past, we think about corporate innovation, we think about technological advancements. Because we have so many world-class organizations in Houston, we feel like we are doing a good job," Zhou says.

"Innovation definitely includes technology, but it also involves new business models, new way of meeting customers, new work processes — everything we do in a large corporation, there's always a better way of doing it. That's our definition of our corporate innovation."

Zoran Perunovic (left) anf Jing Zhou created the Corporate Innovation program housed in Rice's Executive Education department. Photos courtesy of Rice

Zhou and Perunovic designed the program to target business professionals from all areas of the corporate world.

"People, managers, professionals, executives in all functional areas of business can benefit from this program," Zhou says. "We don't teach to just one function area. We teach the fundamental principles of how to drive innovation and broaden the cognitive space."

Perunovic concurs with his colleague and adds that, "everyone is relevant — that's the future of innovation." Another aspect of the program that's forward thinking is the idea of cross-industry innovation collaboration.

"In all our programs, especially this one, we are not encouraging members from one type of industry to join. We want diversity of industry," Perunovic says.

The program has an advisory board comprised of business leaders in Houston. The program's board is made up of:

  • Tanya Acevedo, chief technology officer of Houston Airport System
  • Barbara Burger, vice president of innovation at Chevron and president of Chevron Technology Ventures
  • Gareth Burton, vice president of technology at American Bureau of Shipping
  • David Hatrick, vice president of innovation at Huntsman Advanced Materials
  • Roberta L. Schwartz, executive vice president and chief innovation officer at Houston Methodist

Industry, position, and company notwithstanding, the program has value across the board in Houston, now more than ever.

"Innovation is no longer optional for large organizations," Zhou says. "It's required in whatever you do, and whatever space you're competing in."

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Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”

Houston company partners on AI-powered medical support for space missions

AI in space

Houston-based Aexa Aerospace has partnered with SpacePort Australia (SPA) to build medical AI solutions for space crews.

Known as The Hamilton Project, the collaboration aims to complete the training and refinement of a “deductive medical AI model” designed to aid and treat astronauts and space travellers. With limited to no real-time access to doctors on Earth during space missions, the project's goal is to create an AI model that would serve as a medical resource.

“‘The Hamilton Project’ is a sophisticated AI model, integrating academic and clinical knowledge in a unique way,” Aexa founder and CEO Feranando De La Peña Llaca said in a news release. “It is paving the way for future autonomous attending.”

The project is named after NASA flight surgeon Dr. Douglas Hamilton, who participated in 50 missions.

SPA, an independent research organization, will bring its practical medical knowledge and clinical experience to The Hamilton Project, which builds on Australia’s rural and remote medical training programs. SPA founder Dr. Gabrielle Caswell brings 20 years of remote medicine experience that SPA believes will help address the issues that could be encountered in space.

“Rural general practitioners in Australia practice ‘pre-cradle to grave’ medicine, including areas considered sub-specialities in most western countries: OBYN, paediatrics, trauma management, anaesthetics, general surgery, mental health and geriatrics,” Caswell added in the release. “This broad clinical skill set encompasses all stages and phases of human life. And importantly practitioners are also trained in the management of severe trauma. "It is anticipated that doctors and medical staff will become embedded into missions, and all these skills will be required over time, to create successful space economic zones.”

Aexa Aerospace’s previous work includes developing holographic medical devices that have been trialled on the International Space Station. Read more here.

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