The Innovation Stack
Published: 2020
by Jim McKelvey
1965 – Present
Brief Summary
The Innovation Stack by Jim McKelvey explains how to build innovative companies by stacking technologies and ideas in new ways, using Square's story as an example.
Overview
✨ Innovation comes from combining existing technologies in novel ways.
The Innovation Stack by Jim McKelvey, co-founder of Square, presents a framework for creating breakthrough innovations. McKelvey argues that most innovations aren't entirely new inventions but combinations of existing technologies stacked in creative ways.
Using Square's development as a case study, the book shows how combining mobile phones, payment processing, and software created a revolutionary product. McKelvey provides practical advice for entrepreneurs on identifying stackable technologies and building innovative companies.
Key Points
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The Innovation Stack: Layer technologies and ideas to create something new and valuable.
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Find the Gap: Identify problems that existing solutions don't address well.
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Combine Technologies: Look for ways to stack different technologies for multiplicative effects.
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Start Small: Build minimum viable products to test ideas quickly.
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Learn from Users: Use customer feedback to iterate and improve.
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Scale Thoughtfully: Grow your business while maintaining innovation culture.
Highlights & Practical Tactics
✨ "Innovation is not about inventing new things; it's about stacking existing things in new ways."
- Map Your Stack: Diagram how different technologies and ideas combine in your product.
- Identify Leverage Points: Find where small changes can create big impacts.
- Build Prototypes: Create quick, cheap versions to test concepts.
- Network Aggressively: Connect with people from different fields for new ideas.
How This Book Can Benefit You
- Learn a systematic approach to creating innovative products.
- Understand how to combine existing technologies for breakthroughs.
- Gain insights from a successful entrepreneur's experience.
- Develop skills in identifying market gaps and opportunities.
- Build more effective innovation processes in your organization.
7-Day Starter Plan
Day 1
Identify a problem you want to solve. Research existing solutions.
Day 2
List technologies that could address different aspects of the problem.
Day 3
Brainstorm ways to stack these technologies in novel combinations.
Day 4
Create a simple prototype or mockup of your stacked solution.
Day 5
Share your idea with potential users and gather feedback.
Day 6
Refine your stack based on feedback and identify next steps.
Day 7
Plan how to build and test a minimum viable version of your innovation.
Limitations
The book's focus on technology stacks may not apply to all types of innovation. Some concepts require technical knowledge to implement.
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