BFW – Business Owners, Executives, Creators: Do You Have an Innovation Stack?



Dear Reader,

Listen to the Newsletter

Hey Brain Food enthusiasts! 🧠✨

Welcome to another edition of Brain Food Wednesdays, your weekly intellectual feast. In this edition, issue 213, we dive into what might just be the David to your Goliath in the business world.

Have you ever heard of the book, Innovation Stack by Jim McKelvey, one cofounder of Square, the payment processing company. In the book, you have David and Goliath. David is Square and Goliath is Amazon. You can replace your David and Goliath in this story to personalize it for you. The book weaves in the story of Square and how it beat Amazon at its own game.

When investigating how the giant couldn’t slay the little man, McKelvey realized it was their innovation stack. They didn’t even know they had an innovation stack.

What Is An Innovation Stack?


An innovation stack is a series of reactions to existential threats. Square’s innovation stack resulted from their original decision to serve people outside the existing market. Innovation stacks are at the core of world-changing businesses throughout history. The skill you need is to take on a problem no one else has ever solved and do what it takes to solve it.

David and Goliath


There are many important pieces of information in the book. For instance, the author says that the most important part of the market is its end. The end of the market is the border or line nobody can cross. You have those who can take part versus those excluded. The perfect example is with credit cards. Historically, small businesses were excluded because of exorbitant merchant fees and other aspects that the major credit card companies didn’t view as attractive.

That’s the market that Square went after and did a superb job offering service to those excluded customers. When Amazon noticed how well Square was doing, it went after the smaller company to take away the business. But the giant failed. It could copy some of what Square did, but it didn’t understand all the processes. I’m reminded that in Zero to One, Peter Thiel says that every startup needs a secret.

That’s the differentiator and if you have a secret, it makes it more difficult for another company to copy you. At the bottom of the market lies an unguarded economic border. What is that for your niche? There is a problem-solution-problem loop. When you solve a problem other problems arise. If you continue like this, two things will likely happen – you fail and die. Or you succeed in solving all the problems with a collection of both interlocking and independent innovation.


Do You Have an Innovation Stack?


Innovation Stack by Jim McKelvey doesn’t give you a step-by-step guide. You must figure it out for yourself. Think about and answer the following questions. Your answers will help you create your Innovation Stack.

How easy is it for someone to copy what you do? Do you have a knowledge advantage? How can others put you out of business? Anticipate where the problems will come from. Run your business as if you are competing with the larger companies. It could even be a vendor. What would you do if any of these organizations entered the market you are in? The answer to this important question will teach you how to operate your business.


Creating Your Innovation Stack


I created my Innovation Stack a couple of years ago. I just looked at it and I have to change it because I no longer offer some products.

In Innovation Stack by Jim McKelvey, something struck me: A company that creates an innovation stack doesn’t do so by copying innovation. Timing is everything. Somebody else’s invention may be the missing piece of your innovation stack. Timing is about being ready when the missing element becomes available. If you’re ready, you can quickly capitalize on the new element.

A new change can supercharge your innovation stack. It will be difficult to displace a company with an innovation stack. If the world is ready for what you have to offer, you have a responsibility to create an innovation stack.

What will your Innovation Stack look like?

Sign up for my membership site Art of Learning Leadership Academy

Warm regards,

Avil Beckford

Editor, Brain Food Wednesdays

Founder, The Invisible Mentor & Art of Learning Leadership Academy

theinvisiblementor.com artoflearningleadershipacademy.com

LinkedIn | Instagram | Twitter | Pinterest | Facebook


Leave a Reply

Your email address will not be published. Required fields are marked *