Innovation is risky. Customers are not asking for it. We are already successful… Getting momentum behind significant innovation is difficult, and sometimes it’s easier for a business to stay in what they deem a safe spot. Let’s look at seven arguments that inhibit innovation as well as their counter arguments.
An in-house innovation program is becoming a common fixture in the most competitive organizations. However, in a recessed economy, these research & development programs can sometimes get eliminated, because they struggle to prove or articulate value.
A common misconception today is that innovators are innately creative people. Specifically, many people think that innovators are born with intuitive skills and views of the world that differsfrom the rest of the population. This is simply not true. Innovators aren’t born, they’re made. But we can learn from a few key attributes that leading innovators share.
Open Innovation relies on collaboration to achieve success. To determine which firm is the best suited to be an innovation partner, small and medium-sized entities (SMEs) should consider using an approach modeled on the “Want, Find, Get, Manage” methodology developed by Alliance Management Group (AMG). Because of their unique characteristics, broadly summarized as limited resources,SMEs should substitute “want, find and get” with “need, know and negotiate.” Capable and stable management remains a constant.
There is no correlation between how much a company spends on R&D and its overall financial performance. So what can help a company turn decent ideas into solid products? The latest iteration of Booz & Company’s annual survey on R&D spending of the 1,000 public companies that spend the most on innovation sheds light on what strategies are working.
According to Randy Komisar, what distinguishes the Silicon Valley is not its successes, but the way in which it deals with failures. The Valley is about experimentation, innovation, and taking new risks. Only a small business that can deal with failure and still make money can exist in this environment. It is a model based on many, many failures and a few extraordinary successes.
William Sahlman, professor at Harvard Business School, reflects on three things that helped John Osher, the developer of the low-cost spin toothbrush, succeed. Sahlman identifies three factors: 1) Reflecting on your experience to improve your understanding, 2) Looking at the situation differently to successfully innovate, and 3) Scanning your environment to find new opportunities.