Kaplan Institute Exec Director Howard Tullman Speaks on Innovation at Orion Advisor Services Ascent 2019 - On the Road - Kickoff event

In his dynamic keynote address at Orion’s Chicago Ascent 2019 conference on Wednesday, May 8, Howard Tullman commanded a ballroom full of advisors and technology experts to sit up, take notice, and, hopefully, take action.

“Never in human history,” said Tullman, Executive Director of the Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship, “has the present been so temporary. The rate of change will never again be as slow as it is today.”

And if you’re reluctant to change, you will get left behind. Tullman used the examples of former giants like Sears and BlackBerry, who were unable to keep up with rapidly transitioning markets and accelerating innovations.

He also made an important distinction between invention and innovation. “Innovation is quicker, easier, and more profitable in almost every case than invention,” he said. It’s about playing small ball: going for base hits and quick scores rather than swinging for the fences.

Innovation, then, doesn’t mean changing your business entirely to do things better. It’s a method of step-by-step, continuous improvement. You don’t need to reinvent the wheel; you just need to find a better way to use it.

The key, Tullman explained, is forward progress. Think of success like ironing: you move a few steps forward, then go back and smooth things out, over and over.

And in a world where robots are taking over everything from radiology to pizza delivery, advisors need to find a way to use innovation to improve human connections, not replace them.

That means leveraging technology to take care of the non-human portion of financial advising — like billing, reporting, and compliance tedium — and freeing up more time to spend with clients.

People crave connections. That’s why they commit to other people, not to institutions. And as a financial advisor, it’s your job to tell your committed clients a simple story: where they’re going, and how you’re going to help them get there.

The truth is, no advisor wants to spend more time in Excel than with their clients. Think about why you got into financial advising in the first place: was it to reconcile data, or was it to use your expertise to make a difference in other people’s lives?

To stay competitive in today’s market, you need technology and innovation. But it’s how you use them that’s going to set you apart. Meaningful client relationships are the differentiator between you and a robot that can diversify a portfolio in half a second.

And while that may not be possible yet, the future is coming: faster than any of us think, according to Tullman. To future-proof your business, the technology that supports it has to be flexible enough to integrate with what’s coming next, and efficient enough to allow you to use your time to make an impact on your clients.

“All that we really need,” Tullman concluded, “is something to be enthusiastic about.”

Want to get excited about your business again? Talk to Orion today about how our advanced portfolio accounting solutions can save you from the minutiae of data analysis, reporting, billing, compliance, and more, and give you the freedom to do what you love.

Chicago Technology and Innovation: 1871 CEO Howard Tullman Isn’t Slowing Down Anytime Soon

LISTEN TO THE PODCAST HERE: http://wgnradio.com/2015/07/07/chicago-technology-and-innovation-howard-tullman-isnt-slowing-down-anytime-soon/

Listen to the Broadcast here: http://wgnradio.com/2015/07/07/chicago-technology-and-innovation-howard-tullman-isnt-slowing-down-anytime-soon/

1871 CEO HOWARD TULLMAN SPEAKS ON INNOVATION AT MT. SINAI ANNUAL MEETING

Talking about Innovation is like Trying to Cut Roast Beef with a Screwdriver.

Talking about Innovation is like Trying to Cut Roast Beef with a Screwdriver.

1871 CEO HOWARD TULLMAN INTERVIEWED FOR BLUE SKY INNOVATIONS - BIG IDEAS FOR 2014

Howard Tullman, incoming CEO, 1871

“Growth is inherently embarrassing. Get used to it.” (Source) | Pictured: Howard A. Tullman (Handout)

“It’s been totally clear since I was 12 that I would make the world’s worst employee. My family was barely interested in keeping me around since I was so bad at taking direction.” (Source) | Pictured: Howard A. Tullman at Kendall college on Nov. 18, 2002 (Jill Sagers-Wijangco / Chicago Tribune)

“We’re not just a hobby. We’re not a place for people to go to feel good about attempting to be an entrepreneur. We’re about people committed to building businesses.” (Source) | Pictured: Entrance to 1871 inside Chicago’s Merchandise Mart on Nov. 22, 2013 (Chris Sweda / Chicago Tribune)

“Never deal with the monkey when the organ grinder is in the room.” (Source) | Pictured: Howard A. Tullman on June 13, 2011 (Handout)

“Radical change and disruptive innovation come from the outside of organizations, not from the people in charge or the one’s maintaining the status quo.” (Source) | Pictured: Howard A. Tullman stands in front of a Flashpoint Academy promotional video in downtown Chicago Aug. 4, 2008 (Alex Garcia / Chicago Tribune)

“So be aware that family and community ties are just that — ‘ties’ that can restrict and limit your chances to move onward and upward, whether anyone ever admits that to you or not.” (Source) | Pictured: Howard A. Tullman of G2T3V, LLC in his downtown Chicago office on Nov. 21, 2013 (Jose M. Osorio / Chicago Tribune)

“A new idea is delicate. Speed is critical. It can be killed by a sneer or a yawn. It can be stabbed to death by a quip and worried to death by a frown on someone’s brow. And, of course, it can be strangled by a committee.” (Source) | Pictured: Howard A. Tullman in an animation class at Flashpoint Academy in downtown Chicago Jan. 8, 2008

Incoming 1871 CEO Howard Tullman retired as a lawyer in 1980 to become an entrepreneur. In 2002, he was named president of Kendall College and turned the then-financially troubled college around, moving it to Chicago. He is the president and CEO of Tribeca Flashpoint Academy, a hands-on, apprenticeship training program in Chicago for the digital media arts. He served as longtime board chair of Cobalt Group, a buyer-insight platform for car sellers, and recently started his own venture capital firm, G2T3V, an early stage investment firm focused on financing and developing disruptive innovations in a portfolio of 15 companies that includes crowdfunder IndieGogo, the insurance claim streamliner SnapSheet, quiz site Social Crunch and group change management site Youtopia.

What he’s doing

Tullman elaborated on changes coming in the New Year for the Chicago startup community, including the possibility that 1871 would partner with the online crowdfunding service Indiegogo. A representative for Indiegogo would not comment. The crowd-funding platform has partnered with other entrepreneurship hubs but has no presence yet in Chicago. Along with Kickstarter, Indiegogo is one of the most widely-used crowdfunding platforms online.

Tullman said in an interview with Blue Sky Innovation that 1871's interest in an agreement signals a bet by Chicago startups that the Securities and Exchange Commission will enact new crowdfunding rules that would enable startups to raise significant investment funds online rather than through current investment methods limited to friends and family, venture capital or angel investors.

"People will be able to take an economic stake in the business," Tullman said. "We expect [that through crowdfunding]. they'll be able to fund at 10 times the current rate of angel investing."

Tullman also elaborated on his recent "up or out" remarks regarding 1871 startups. Among the other planned adjustments to the Merchandise Mart-based tech community will be a video studio to produce marketing material; the possibility of additional space for small businesses that grow from two to three partners to 10 to 12 employees; and 90-day reviews for startups during which time they pitch to panels with particular industry expertise alongside other 1871 companies with businesses in the same industry.

The result will be an "emotionally honest" appraisal for entrepreneurs over whether they have chosen the right market, product, company fit and management team to be successful.

Many may decide to leave after those moments, Tullman said.

"I’m going to do them a favor," he said. "We’re not your parents."

What he's watching

In addition to crowd-funding developments at the national level and changes at 1871, Tullman is curious about developments on a variety of fronts:

Moving from diagnostic to prognostic data

"Before Facebook, the web was about links and anonymity. You could be a dog or a cat on the web. It was Facebook who put a stake in the ground and said you had to be who you are. It's almost become table stakes to know everything about you. It's become a cliché to mention that Wayne Gretzky quote, 'skate to where the puck is going.' But we're going to be spending our time trying to predict behavior. Technology will look ahead of you to guess your appetite for things that you are interested in. 2013 was about personal data. 2014 is about intent of purchase data. We want to be ahead of you using high-velocity computing power to put offers in front of you. We can look at the past, react to present, but we can change and influence the future."

Hyper-personalization, high-velocity computing, and automotive applications

"In Chicago, we happen to be the home of three leaders in parking-space locaters, SpotHero, Faspark and BestParking. This is an interesting new area for expansion and technology. A whole host of services will arise: the ability to track mileage, provide mobility services, do pathfinding and wayfinding.

"People are just figuring out to capture odometer information. This is the hardest data to collect, because it's crappy info. But if it were accurate, that would be valuable – it would say how much you use your car. Guys are trying to figure out how to get inside the black box to get that odometer information. Here's why: As each year goes by and cars become more fuel efficient, more electric, the entire road system of Illinois is dependent on the taxes that are extracted at the gas pump. In 48 months or less, we'll get a bill from the state for our road usage that's more like our water bill rather than trying to extract it from the pump. [Economists estimate] the states have billions in lost revenue because of better fuel efficiencies and electric cars. The guy who knows your odometer? He's the guy selling information to the states."

Mapping

"If you control the map, you control the game. Maps are how we make consumers smarter. People are using mapping software to track you in stores. That includes tracking your direction, dwell time at a specific location, and whether you move from display to purchase transaction."

Tailored insurance

"Insurance as an industry is inertia-based. Insurance as an industry is fat, happy, interested in maintaining the status quo, and eager not to disrupt it. But what we're seeing now is its whole world moving as banking did from tellers to ATMs. In the insurance space, we will see an enormous increase in two things: self-service, and an increased confluence of data that's now available on how we drive, actuarial information on insurance that will be offer consumers advantageously competitive pricing. We're trading privacy for money."

Watch Howard Tullman on the difference between ‘innovation’ and ‘invention’

TFA CHAIRMAN HOWARD TULLMAN SPEAKS AT CORNELL TECH - TECHNION-CORNELL INNOVATION INSTITUTE

TRIBECA FLASHPOINT ACADEMY CHAIRMAN HOWARD TULLMAN SPEAKS ON INNOVATION FOR SPARK BUSINESS

TFA Chairman Howard Tullman comments on Can You Innovate Too Much? BY Kevin Daum

Can You Innovate Too Much? BY Kevin Daum

Google has quietly reduced resources for innovation. Prudent move or short-sighted? Here, Inc. columnists offer advice on finding the right amount of experimentation for your business.

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Not every company or department needs to constantly focus on innovation. At some point, you might find that you need to slow down experimentation so you can capitalize on the initial results. That theory may be behind Larry Page's shift in priority as Google quietly phased out their 20% policy and Google labs.

Given the state of constant disruption in today's economy, teams need to find the right blend of innovation and repetitive business practices.

But there is no set formula or methodology that works for everyone. The key is to integrate experimentation into your culture with resources and time allowed for acceptable failure.

Then establish specified methods of feedback. That way people can try, fail and learn about any process in the company or marketplace at any time as the market demands.

Here are more insights from my expert colleagues:

1. Give Innovation Its Own Home

When companies like Google get to a certain size, it becomes impossible to act or think like a start-up. It takes a different leadership team and organizational approach to keep an enterprise that size running. Experimentation and innovation are limited to refining processes and making incremental improvements. The best way to encourage true experimentation and innovation is to separate it from the rest of the organization. Give new ideas an opportunity to flourish without the bounds of politics, red tape and organizational complexity. Once an idea shows it will succeed, work to bring it back into the larger organization. Eric Holtzclaw--Lean Forward
Want to read more from Eric? Click here.

2. Establish Predictable Methods

When it launched Gmail, Google was a private company with roughly 5,000 employees. Today, it has nine times the headcount, plus a high-flying stock price. Poorly timed movies notwithstanding, Google is now the establishment, and as Jon Burgstone and I wrote in Breakthrough Entrepreneurship, bigger organizations almost always innovate less. Why? Because their stakeholders come to value stability, not risk. Google won't stop innovating, but it will do so in more predictable, stable ways, including acquiring other companies (as it has done with many of its most important products). Bill Murphy Jr.--DC Bill
Want to read more from Bill? Click here.

3. Integrate the Process

Google's eliminating the 20% policy has nothing to do with innovation or with a change in their business practices. First, the 20% time was entirely about new "blue sky" ideas and inventions. You specifically couldn't work on anything having to do with your regular work. Since true innovation is all about continual, iterative and incremental improvements in productivity and cost savings in existing business processes, giving the dreamers less time off won't matter much. Second, innovation is a full-time and fundamental business practice as important as any other. It's not a sometime thing or a department. It's not someone's job--it's everyone's job to be thinking about how to work better and smarter with less time, fewer resources and better results. Howard Tullman--The Perspiration Principles
Want to read more from Howard? Click here.

4. Have a Set Formula

Every company needs a balance of steady growth in existing markets and technology along with new, innovative solutions. Google is simply shifting gears to a new strategy: growth and innovation through acquisition. For growing companies, it's wise to follow the 80/20 rule: allocate 80% of your resources to existing practices and 20% to innovation. Microsoft appears to follow this formula by continually advancing existing technology and less frequently releasing new technology. Their most recent advancement is the integration of Skype and Outlook, allowing people to use Skype video calling and messaging directly from e-mail: an innovative solution via an existing platform. Marla Tabaka--The Successful Soloist
Want to read more from Marla? Click here.

5. Encourage Autonomy

While some companies like Google may be phasing out open-ended innovation programs with no measurable bottom-line result, innovation is definitely not becoming a low priority in American business. More leaders than ever are pushing their people to innovate to work, and to find powerful new solutions to persistent problems. One of the most effective--and most affordable--ways to spur innovation in your organization is to create a culture of innovation. Give your people the autonomy--and the responsibility--to pursue new ideas and to try them out. Support risk taking rather than punishing it. Don't wait for your organization to create a culture of innovation--create your own. Peter Economy--The Management Guy
Want to read more from Peter? Click here. 

6. Innovate or Die

In today's fast-changing market and even faster-changing communications landscape, innovation is essential. It can be challenging for high-growth and larger businesses to dedicate resources to innovation. But the only constant is change, so it really is "innovate or die." Try these seven steps to creating a culture of innovation.  Dave Kerpen--Likeable Leadership
Want to read more from Dave? Click here.

An Inc. 500 entrepreneur with a more than $1 billion sales and marketing track record, KEVIN DAUM is the best-selling author of Video Marketing for Dummies.
@awesomeroar

TRIBECA FLASHPOINT ACADEMY CEO HOWARD TULLMAN SPEAKS ON INNOVATION TO LEADERSHIP FORUM AT NORTHWESTERN HOSPITAL