Friday, October 25, 2013

Thoughts on Creativity


Like most of the Earth’s population (I’ll have to double check this fact) I have never considered myself as someone creative. Actually, I did once. As kids, we all let our imaginations run wild and we come up with some pretty creative stuff- a cruise that is also a school? Some would call that genius….. But after a while, when my hands did not seem to be able to come up with beautiful crafts or pretty drawings, I stopped believing I was creative, or capable of creativity.

I think that perception slowly started to change as I came to college and the concept of critical thinking was reinforced. I started to realize that I did have good ideas, and with some research and training I could come up with some pretty amazing solutions to problems. I also started to notice my creativity outside of the classroom. Particularly with people- I know everyone says they’re a people person, but I really am. People are my thing, I’m especially good at relationships and I’m very creative in the way I solve people problems.





I always feel more creative around other people; I like the feeling that others are keeping your ‘creativeness’ in check. It can be incredibly frustrating to get your ideas shut down. And if I don’t know/trust the people around me, I immediately feel self-conscious (and judged) when one of my ideas is shut down, and then I shut down. So that’s bad. I need to feel like I have credibility within a group in order to feel creative.

There are other things in my personal environment that make me feel creative. Good movies, good conversations, and good music have a huge creative effect on me. Content- articles, videos, books help a lot, if anything they help me to get into a creative mindset. But there’s also the random inspiration that happen through life moments- cool street art, bad service experiences, and funny jokes- all of those are part of how I build creativity.




The organization I interned with two summers ago was not the most creative- at least not the parts I was exposed to, I think it might have to do with the sheer size of it, the fact that there are very separate business functions, and the fact that there are very specific business goals that the organizations is pressured to achieve. Even the strategic, highly problem focused jobs, had little to none real innovation. The one I intern with now has slightly more room for creativity, but at the same time, they are not focused on change- yet. It’s a small start-up and I can see that the structure and culture their building now- could lead to innovation. For example they have a big emphasis on being the best and “staying ahead of the curve”.

The organization that I interned with this summer did the best job at it. As interns we even had training on innovation and design. There is an enterprise effort to make the company a modern marketing organization. Part of what this means, is encouraging creativity, and for employees to take more risks. Because of this effort they are experiencing important challenges. Senior management grew up with the traditional model, and they are not the most comfortable with innovation, although they understand it’s importance. It’s also a big organization and change is slow, so slow. 


I believe than anyone has the power to be creative. For an individual, the right tools and mindset have to be available. For an organization the processes and rewards have to be aligned to allow it to happen. For both an individual and organizations, the first step is believing that you can be creative. Letting go of excuses (I’m not good with my hands, creativity sacrifices productivity, etc) is the first step in allowing this phenomenon (creativity) to occur.

I do believe that creativity can be taught, but I refuse to believe that it should always be structured in an organized process (even if the organized process works). And so, there must be many ways to come up with creative solutions. And it must be based on the type of problem, but also whatever feels right in the moment. I do think we should trust our gut, but at the same time, trying different approaches (if time permits) to solve one problem might be the most complete way to come up with solutions for problems. 

Overall creativity is a phenomenon where something new and valuable is created and we all have the ability to do that. I'm convinced. 




Wednesday, October 9, 2013

Business Model Analysis Report- Etsy.com



Etsy first caught my attention when, after seeing a necklace on a blog, I decided to Google the description and see what showed up. The real necklace showed up as one of the top results for $250, and right next to it a necklace that looked satisfyingly like it for $35 that was being sold at Etsy. This was the start of my love affair with the website.
Etsy.com is an online marketplace for handmade goods. Items sold on the e-commerce site are included in the categories of art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys. You can even sell/buy craft supplies and vintage items!
For $0.20 an item, and 3.5% of the sale, sellers can list their products, and customers can search by category or through a highly effective search bar. The website was launched in 2008, and from it’s inception it has provided a platform to entrepreneurs to reach a wide collection of clients. Sellers range from college students creating jewelry in their dorm rooms to artists selling unique paintings and prints. The rise of online shopping has made possible the 1 million active sellers and the $895 million they made in the marketplace in 2012.
Etsy.com is positioned uniquely in the market since it was one of the first to support micro-producers and provide a platform to purchase directly from them. That’s not to say there is no competition. Amazon and eBay provide a less specialized but highly visible platform for similar activities. After Etsy, at least half a dozen websites based in different countries around the globe have followed in the same business model- although most specialize on different things (for example, Tiendie focuses on technology and electronics). Etsy is also special in that most of their rhetoric has the sellers as the protagonist and not the buyers. Their purposed is focused on providing a platform that provides artists with an opportunity to validate their craft.
I personally love Etsy, because I believe in rooting for the little guy- it’s taking advantage of the popularity of ecommerce and mobile shopping and providing talented people with a way to start their business. Furthermore, as a buyer, it gives you access to highly unique products at very affordable prices (average sale is $20), you can even only buy local if you want to! It’s pretty much like going to the SoCo Artist Market online. It’s new, evolving and learning and I find that exciting- there are many areas of opportunity for Etsy, they’ve already enjoyed great success and I want to see where this Brooklyn-based operation goes.
Below are a couple of captures from their website. As you can see, there’s minimal design involved. The website’s functionality is great, and like I mentioned before, it has phenomenal search capabilities. However, it’s not particularly pretty. It seems like they don’t want the products to be drowned by the website design/layout.



Etsy.com is a two-sided platform- it involves and needs buyers and sellers for the business to exist. On the sellers’ side, the two primary customer segments that are most important for Etsy, I believe are:
1.     Amateurs- People who do crafts for fun, are good at creating things, and want to make some extra bucks with their hobby.
Value proposition: Etsy.com is the intermediary for these amateurs to sell the product of their hobbies in exchange for a fee.
2.     Serious Crafters and Artists- people who do see Etsy, as a way to launch their business or career. The production of this product is their primary economical activity.
Value proposition: Etsy.com these artists and entrepreneurs with a platform to launch their designs and products and reach a wide range of customers, again, in exchange for a fee. They can leverage their own websites, Pinterest, and the Etsy membership to spread the word.
On the side of buyers’ side, there are also different segments. My semi-educated guess is that he most important ones are:
1.     Fashionable, savvy, young women- looking for something quirky and different. They’re looking for jewelry, apparel, and maybe some home items. They keep Etsy a secret. They also love the fact that no one they know will have the same items they will.
Value proposition: Etsy.com is offering them with a market to find rare and current products that fit their lifestyle and desires.
2.     Tech-savvy moms looking for craft materials, and seasonal items for their house and kids- there’s a big section for kids, toys, and seasons (right now Halloween is big). These are still aimed at moms who like buying on-line and appreciate the uniqueness of their purchase.
Value proposition: Etsy gives these savvy moms a modern and convenient way to find fun items for their house and kids.
3.     Design and art enthusiasts- they are looking for new artists, fresh and young designs, and original art.
Value proposition: Etsy provides a discovery tool for these artists and fans to discover and purchase art form artists from all over the world.

Etsy has shown great growth since it's founding and it's role as intermediary is innovative in it's space and interesting form a business model perspective. I look forward into digging deeper into the company's strategy.

Sources:
Etsy.com