This is an important read for all in leadership and governance who are responsible to make those difficult decisions. It addresses decisions that all companies face ….. there is a caution against the same innovation that succeeded may not be the best today or even tomorrow.
Excerpt: In the mid-90s as CEO of Medtronic, I was concerned about whether we could sustain the remarkable success in innovation that we had enjoyed during the previous 10 years. As we grew, I knew it would be very difficult to continue to create the breakthrough innovations that had led to Medtronic’s high growth rate, which had exceeded 18% per annum for a decade. Then I read Clay Christensen and Joe Bower’s 1995 article “Disruptive Technologies: Catching the Wave” in HBR.
Read full article via The Idea That Led to 10 Years of Double-Digit Growth – Bill George – HBS Faculty – Harvard Business Review.
The download is 13 pages and well worth the read for insights, discussions of pro and con, plus how-to. Vendors
Excerpt: Faster technology developments coupled with increased dynamics of competition are re-shaping virtually every sector of the market and are pushing NPD in the strategic core of business activity.
The benefits of earlier and more extensive involvement of suppliers in NPD are well documented in existing research and include better project performance in terms of speed, productivity, quality and cost. To realize these benefits, firms have increasingly relied on R&D collaborations. Organizations have started to open their R&D departments and move from in-house, closed R&D approach, toward open innovation and collaboration. Suppliers’ involvement in new product development has become not only important, but for many companies inevitable.
Organizations increasingly rely on their R&D suppliers to innovate successfully. Strategic technology suppliers in particular play a significant role in providing an organization with key external technologies that open innovation advocates see as critical to enable companies to compete successfully.
Supplier relationships in NPD: Problematic
Nevertheless, abounding evidence shows that efforts to involve suppliers in early phases of NPD are not always successful and, in some cases, can even create impediments in product development. Moreover, an estimated 46% of the resources that companies devote to the conception, development and launch of new products go to projects that fail in the marketplace or never make it to market.
The ability of organizations to benefit from R&D collaborations and innovation with suppliers varies depending on a range of factors
Read introduction and download pdf herevia Enterprise innovation articles. From Innovation Tools
Small business of-interest takeaways. Innovation and R&D spending.
Excerpt: Barry Jaruzelski, the Booz senior partner who put the report together, says that over the past eight years, they’ve found “no statistically significant relationship between how much you spend on R&D and how you perform over an extended period of time.”
Read introduction and see 11 slides via Most Innovative Companies In The World – Business Insider.
Recommended read leadership and management. Ideas of Axelrod and Cohen as basis of tools.
Excerpt: It is this author’s view that the gap in management practice, where it exists, results from a mismatch between traditional management methods (command and control) and the unique nature of innovation as a system having non-linear behavior.
This approach makes it possible to build on the ideas of Axelrod and Cohen (2000) regarding complex adaptive systems in general, applying their framework specifically to managing innovation. This permits us to describe the role of managers and specify actions they can take to advance the process. The Axelrod/Cohen framework is evolutionary and has been developed so that improvements can be generated even though every element of a system may not be fully understood and the outcome may not be predictable (a good fit with innovation).
Read introduction and download pdf here via Enterprise innovation articles. Innovation Tools
Small business of-interest and points to ponder.
Excerpt: In our forthcoming American Economic Review paper, Innovation and Institutional Ownership, we examine the incentives to innovate at the firm level by studying the relationship between innovation and institutional ownership. Innovation is the main engine of growth. But what determines a firm’s ability to innovate? Innovating requires taking risk and forgoing current returns in the hope of future ones. Furthermore, while any type of financing is plagued by moral hazard and adverse selection, the financing of innovation is probably the most vulnerable to these problems (Arrow, 1962) since the information that needs to be conveyed is hard to communicate to outsiders. This paper is an attempt at analyzing the corporate governance of innovation and more specifically the role of institutional owners in fostering (or hindering) innovation.
Read full article via Innovation and Institutional Ownership — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
Business models, innovation, reengineering, culture change and more can sometimes not produce the expected or at least the immediate results you were expecting. This article is a good read. Another look or a fresh perspective may make the difference.
Excerpt: If you’ve had a bad experience with an operational improvement effort (like Six Sigma or Business Reengineering), or if you haven’t given it much attention lately, you should take a fresh look. Many companies and executives have been disappointed with these efforts when results weren’t sustained and inefficiency crept back in. But improvement has improved.
I see three forces behind this trend:
Read full article via Operational Improvement Has Improved – Brad Power – Harvard Business Review.
Another great innovation-explained article this morning. In order to master innovation, understanding the parts that can be managed, controlled and mastered helps us to put aside that innovation is some magical moment or epiphany for which we have no control.
Excerpt: To remain at that leading edge where disruptive innovation happens, companies need to acquire and maintain a clear picture of how their innovation networks are structured. Intensive collaborative innovation has become the rule.
When designing optimized networks, a striking similarity to the complex map of neurons and synapses within a brain emerges – the connectome. This is why we are hereby suggesting to name innovation network mapping the Innovation Connectome. The various nodes are linked by information flows represented by arrows (figure 1). …..
Read full article via Neuronal Innovation – the Next Big Thing After Open Innovation | Innovation Management.
Good read. Do you have your “head wrapped around innovation” yet? This article takes you through the definition and weighting of innovation projects to better help you manage and lead them.
Excerpt: From incremental to breakthrough innovation projects, managers need to handle different activities and with them dissimilar venues of risks. In this article the internal, external and hidden risks of incremental, differential, radical, and breakthrough innovation projects are identified and ranked accordingly. In addition, for every category a general innovation eco-system has been analyzed.
Read full article via Risks of Incremental, Differential, Radical, and Breakthrough Innovation Projects | Innovation Management.
Teams and innovation. I partially agree with “social abilities” weigh more than team’s individual ”aggregate IQ”? I mean, after all, if the intelligence isn’t available will this not immeasurably alter the result, both individually and collectively?
Excerpt: Considering the complexity and global nature of business today, work is nearly always a team activity, and often those teams are embedded in ever-shifting networks. A new field of study, collective intelligence, is measuring the ability of teams to solve problems. This research is yielding powerful insights into improving the performance of networks, teams, and other collective groups. One breakthrough finding shows that collective intelligence is variable and measurable and — most surprisingly — correlates more with the social abilities of the team members than with the team’s aggregate individual IQ.
Read full article via Group Intelligence Correlates With Social Aptitude, Not IQ – Steven Rice – Harvard Business Review.
GREAT article and recommended read for all leadership and management. Read the discussions and answers from several who succeed.
Excerpt: How brilliantly managed chaos sparks success inside Nike, Cisco, Foursquare, Intuit, and more.
Read full article via How Leaders At Companies From Box To Gore Innovate In Chaos | Fast Company.
This is a good read … I just wanted him to expand even more into how-to and why-to. For all leadership and management
Excerpt: The six goals I am referring to are:
Obsession (Mental Focus in Overdrive)
Vivid Mental Visualization (Crystal Clarity of Recall)
Innovation (Unbridled Creativity and Imagination)
Lightening Wit (Processing and Generative Speed often combined with Humor)
Terminological Command (Extensive and Effective Vocabulary)
The Art of Memory (Speed and Retention of Recollection and Recall)
Read full article via The Path to (Cognitive) Prosperity – Cracking the Code « Cerebral Musings. From NF Hannibal
A good read on some important ingredients to include in your innovation tasks. It is innovation with issues uppermost in today’s world.
Excerpt: CEOs of large companies face a conundrum: they are confronted with a growing number of frugal consumers clamoring for affordable solutions, yet their existing corporate culture and incentive systems are designed to support a “bigger is better” business model — not to deliver more with less. As the Age of Austerity dawns, however, corporate leaders will have no choice: they will have to bite the bullet and infuse their organizations with a frugal mindset. In sum, CEOs need a frugal innovation agenda.
Frugal innovation is the ability to innovate cost-effectively and sustainably under severe resource constraints.
Read full article via The CEO’s Frugal Innovation Agenda – Navi Radjou, Jaideep Prabhu, Simone Ahuja – Harvard Business Review.
More today on innovation how-to with this article giving you models, the tools that can be used again and again.. The article also invites comment and user input.
The anticipated end goal is to create a common innovation model or framework that accelerates acceptance, reduces mystery, constant rework and simplifies innovation efforts. Innovation is dynamic. Opening this set of models allows for it to be constantly improved for all to benefit – this is our stated aim in publishing these models
Read full article Enterprise innovation articles. From Innovation Tools
This article continues our efforts to better understand means and manage innovation. There are good how-to within the content. Recommended for all leadership and managment.
Excerpt: People discover, too, that every enquiry—whether in the form of an innovation challenge or a World Café hosting or an immersion in design thinking—has two distinct phases: a front end phase and a back end phase.
Read full article via Engagement Is the ROI on the Front End of Innovation | Innovation Management.