Innovation

Topics: Innovation, Entrepreneurship, Value Pages: 5 (428 words) Published: November 3, 2013
MANAGEMENT OF

INNOVATION?
INVENTION

R&D

PRODUCTS
TECHNOLOGY

DIFFICULT IN
CERTAIN COUNTRIES

LUCK!!

VALUABLE IN JUST A
FEW INDUSTRIES

EXPENSIVE

WHAT IS INNOVATION
“It is the means by which the entrepreneurial
activity either creates new wealth-producing
resources or endows existing resources with
enhanced potential for creating wealth”
Peter Drucker (HBR, 1985)

TYPES OF
INNOVATION

Radical
Incremental

TYPES OF
INNOVATION

Product
Service
Process

TYPES OF
INNOVATION
Product
Service

Organizational
Business
Model

Cultural

Routes to
Market

Process

Pricing Plans
Value
Chain

BE CLEAR ABOUT WHAT
INNOVATION IS AND IS NOT
 Does it change the competitive dynamics of the industry?

 Is it new to the industry or just new to your firm?
 Is it just copying to catch up?
(Speaking the Lingua Franca of Innovation, HBR, 2012)

CHANGING THE
INNOVATION MIND-SET
 Good enough can be great

 Step, don’t leap
 The right kind of failure is success
(Mapping your Innovation Strategy, HBR, 2006)

NO ONE WILL FORCE YOU
TO INNOVATE
The paralysis of the leading incumbent is the
greatest Competitive Advantage enjoyed by new
competitors

WHY GOO AS
THE INNOVATION
MACHINE?

5 MYTHS OF

MYTH # 1: THE
EUREKA MOMENT
• Most innovation efforts fail not
because of a lack of bright ideas,
but because of a lack of careful and
thoughtful follow-up.
• Smart companies know where the
weakest links in their entire
innovation value chain are, and
they invest time in correcting
those weaknesses rather than
further reinforcing their strengths.

MYTH # 2. BUILD IT
AND THEY WILL COME
• Online forums are not a panacea for distributed
innovation. Online forums are good for capturing and
filtering large numbers of existing ideas; in-person
forums are good for generating and building on new
ideas.
• Smart companies are selective in their use of online
forums for innovation.

MYTH # 3. OPEN INNOVATION
IS THE FUTURE
• External innovation forums have access to a broad
range of expertise that makes them effective for
solving narrow technological problems; internal
innovation forums have less breadth but more
understanding of context.
• Smart companies use their external and internal
experts for very different types of problems.

MYTH # 4. PAY IS
PARAMOUNT
• Rewarding people for their innovation effort misses
the point. The process of innovating of taking the
initiative to come up with new solutions is its own
reward.
• Smart companies emphasize the social and personal
drivers of discretionary effort, rather than the
material drivers.

MYTH # 5. BOTTOM-UP
INNOVATION IS BEST
• Bottom-up innovation efforts benefit from high levels
of employee engagement; top-down innovation efforts
benefit from direct alignment with the company’s
goals.
• Smart companies use both approaches, and are adept
at helping bottom-up innovation projects get the
sponsorship they need to survive.

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