Tuesday, October 23, 2007

Five Common Mistakes in Innovation

Below is a summary of an interesting article about how companies that do not have both a clear plan for and commitment to sparking innovation can get into trouble.
“Five Common Mistakes in Innovation” by Dev Patnaik
http://www.businessweek.com/innovate/content/oct2007/id20071019_786269.htm

• Over-reliance on pilot initiatives
"We'll be more innovative if we do more brainstorming sessions."
In an attempt to have a quick win, some companies initiate projects that focus on delivering a near-term improvement. Alternatively, they latch on to a single innovation technique, such as brainstorming. However, companies that are successful innovators are taking a portfolio approach to innovation, working with multiple consultants and using multiple methods so that innovation evolves from the integration of various ideas collected from multiple ideation methods.

•Unhealthy fascination with unique charismatic examples
"Steve Jobs is so cool: We need to be more like him."
Charismatic visionaries such as Steve Jobs or Sir Richard Branson are nonexistent in most companies. So, the catalyst for innovation efforts within companies can not be dependent upon one charismatic individual.

• Misapplication of other companies' approaches
"P&G is using a 'Connect and Develop' strategy, so we should, too."
It can be dangerous to emulate the approaches of other companies. P&G implemented what they call their "Connect and Develop" strategy, whereby P&G connects with promising entrepreneurs in the hopes of commercializing the ideas they present.
"Connect and Develop" is a sound strategy for P&G, because of the categories they play in, and the DNA of the company. Just because something works for P&G doesn't mean it will work for everyone.

• Descent into a cycle of self-recrimination
"Our people just aren't creative enough."
Innovation planning teams often benchmark other companies only to come away feeling that their innovation efforts are not effective.
Companies such as 3M are instead looking internally and focusing on returning to what has made them great in the past. They are examining past moments of greatness, determining which activities spawned these moments of greatness, and then figuring out how to do more of that. In short, capitalizing on their organizations' strengths to create approaches to growth appropriate to their culture.

• Resignation to superficial changes
"Let's just paint the walls purple."
After benchmarking several Silicon Valley companies, one firm noticed that many companies it admired had yellow and purple walls. The team went back and painted the walls of their offices yellow and purple, thinking this might actually make them more innovative. While the environment can affect creativity, such initiatives alone usually aren't enough to change the DNA of the organization.

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