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February 05, 2007 Using Innovation For Growth
Innovation has long been an important driver of growth across all
industries. Historically, investment in innovative products, practices, and
services has been strong during robust economic climates and weakest during
economic downturns. Because innovation requires investment in the present
for returns in the future, many executives shy towards conservatism during
uncertain economic times. Ironically, shying away from investment in
innovation (the company's future) during economic downturns actually
prolongs the poor business climate. As of this post, innovation has topped
many corporate agendas.
In a recent Harvard Business Review,IdeaCast , Rosabeth Moss
Kanter discussed common innovative mistakes and the success of Gillette in
its innovative practices. In the interview, Moss Kanter explained the
effectiveness of the innovation pyramid. The innovation pyramid consists of
three levels, at the top, is the innovative breakthrough sought by executive
management, or the homerun; in the middle is innovation within departments,
short term innovations, such as product modifications; and at the bottom is
the effort for continuous improvement in the way everyone in the company
thinks and works.
So what mistakes have innovative firms made? The most glaring, is not
learning from past experiences with innovation. Often times, management
teams turnover, without transferring the lessons of their reign. History has
shown that often, the biggest innovative breakthroughs come from maverick
entrepreneurs (i.e. Microsoft, Apple). Large companies aspiring to innovate,
or capitalize on industry changing innovation can better sense innovation
through brainstorming across all levels of their organization (the
innovation pyramid). Encouraging innovative thought within departments and
listening to the people who make those departments run, often leads to new
ideas, or awareness of innovation on the horizon.
A better sense for innovative direction improves the liklihood of innovative
and successful directives or partnerships. The alternative for many may well
be the triumph of hope over experience.
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