Getting real with innovation
The innovation strategy document: a must-have piece of paper
Much of the literature on innovation management agrees that firms should have a formal document that describes the firm's innovation strategy. This document can help inject a bit of much-needed discipline into the firm's innovation activities, particulary those activities concerned with new product development. Simply put, the document will state whether the firm is going to be first (sometimes referred to as "inventive" or "first mover" or "prospector") or second (sometimes called "fast follower" or "adaptive" or "analyzer"). It could also outline whether the firm is going to play the price game; in what country-markets the firm will compete; in what product-markets the firm will compete and how many new product development projects it will resource at any given time.
It's a good idea to compare the content of this document with what appears on the firm's Web site: it should be similar. If the Web site claims: "We develop innovative new products" and your innovation strategy document states "We aim to be a low-cost producer" or "We are a 'fast follower,'" something is a bit fishy! In other words, you're kidding yourself. What does an innovation strategy document look like? You can check out Merle C Crawford's 1980 paper "Defining the Charter for Product Innovation" for a great model.
Writing the innovation strategy: a must-do activity
The whole process of sitting down and writing out the firm's innovation strategy can be a great experience for everybody, as it allows people in the firm to reflect and get real. This process can surface some fairly deep stuff that is often left to sit in the firm's subconscious. Believe it or not, many firms are actually afraid of success, which results in firms sabotaging their own innovation efforts, albeit subconsciously. Success brings added work and added responsibility, and who wants that? This is why people often don't want to start their own business -- it's much easier to just knock off work at 5:30 and head home to watch the telly. Anyway, this is getting into the area of psychology -- something I know nothing about. That said, many of my wife's self-help books could be very useful in the business context.
Much of the literature on innovation management agrees that firms should have a formal document that describes the firm's innovation strategy. This document can help inject a bit of much-needed discipline into the firm's innovation activities, particulary those activities concerned with new product development. Simply put, the document will state whether the firm is going to be first (sometimes referred to as "inventive" or "first mover" or "prospector") or second (sometimes called "fast follower" or "adaptive" or "analyzer"). It could also outline whether the firm is going to play the price game; in what country-markets the firm will compete; in what product-markets the firm will compete and how many new product development projects it will resource at any given time.
It's a good idea to compare the content of this document with what appears on the firm's Web site: it should be similar. If the Web site claims: "We develop innovative new products" and your innovation strategy document states "We aim to be a low-cost producer" or "We are a 'fast follower,'" something is a bit fishy! In other words, you're kidding yourself. What does an innovation strategy document look like? You can check out Merle C Crawford's 1980 paper "Defining the Charter for Product Innovation" for a great model.
Writing the innovation strategy: a must-do activity
The whole process of sitting down and writing out the firm's innovation strategy can be a great experience for everybody, as it allows people in the firm to reflect and get real. This process can surface some fairly deep stuff that is often left to sit in the firm's subconscious. Believe it or not, many firms are actually afraid of success, which results in firms sabotaging their own innovation efforts, albeit subconsciously. Success brings added work and added responsibility, and who wants that? This is why people often don't want to start their own business -- it's much easier to just knock off work at 5:30 and head home to watch the telly. Anyway, this is getting into the area of psychology -- something I know nothing about. That said, many of my wife's self-help books could be very useful in the business context.
Labels: innovation
posted by Gordon Graham at 12:53 AM
1 Comments:
Great post. Innovation starts with ideas, but later needs structure or planning to put it into motion. One of the difficulties I have found with "innovation" or brain-storming, is the ability to form a team with the right chemistry to move the concept from beyond the "great idea" phase. Many creatives ( I will loosely associate myself with that group) have a hard time moving on others' great ideas. In many cases, it is advantageous to have a team leader, whose lone mission is to keep the process moving forward and give direction and focus.~rick
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