Innovation is the talk of globe, everyone CXOs, academic leaders, Presidents and customer want to innovative concepts, technology and techniques. Once all a company needed was to – improve, continuously improve and expect to succeed. But the information explosion and global economy changed all the rules of business. Peter Drucker, management guru stated innovation as one of the business competence needed for the future. Jack Welch, former CEO of GE believes in ‘break the glass’ i.e. continue to innovate.
What is it?
Innovation is creation of ideas with excellence in execution due to human curiosity. Innovation is not invention, as it is commonly misunderstood as. Invention is creation of idea and innovation is commercialization of former. Innovation is the art of sustaining a company’s competitive advantage by discovering new opportunities.
Why?
Too many companies start investing money, manpower, material without defining the need and facets for innovation. A firm starts effective and efficient innovation when there is a reason or need to do it, those can be one or multiples from the list below to improve, save money, grow and survive
- Growth
With the rapid global economic growth the products and industries are maturing rapidly and consumers are willing to experience something new rather than repair or recycling. Products and services are getting short attention span and expectation from them is rising. Thus, product life cycle is shortened and firms must discover new needs quickly and swiftly than other market players.
- Opportunity
Diminishing the boundaries, as the global village is growing firms should realize potential of new markets and products beyond pre-existing geographic locations, products/services and systems.
- Competitive advantage on ‘Distinctive Capabilities’
Customers no longer want same product/service as their neighbors, they demand an upgraded version of same. Firms need to determine the innovative solutions to tap the demand to move ahead of others and gain the advantage point. Companies which can move with new well executed ideas leap far ahead before others realize and it become their distinctive capability.
- Survival
In the world of uncertainties many companies stick to their standard mode of operation. Innovation distinguishes the firm from other similar and it helps to survive through the rough patches of economy and be the leader. Innovation is the key to long term sustained growth.
Innovative organizations
· 3M :sticky Post-it notes
· EnronOnline: B2B site
· HP: laser and ink jet printers
· Michelin: radical tire
· Citibank:ATM
Organizations which ignored innovation
· Xerox
· Kodak
· Motorola
· Levi Strauss
· Smith Corona(’s type writers)
· P&G (in 90’s)
Wind up
To go ahead innovation is must. As the management guru, Gary Hamel, puts it ‘Most companies are built for continuous improvement, rather than for discontinuous innovation. They know how to get better, but they don’t know how to get different.’
