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How do large companies pursue radical innovation? You know, the kind of new product that changes or creates a market. In my last blog I summarized the 6Ps, a template that I believe could help to increase the output of game-chang
How do large companies pursue radical innovation? You know, the kind of new product that changes or creates a market. There is a school of thought that says large companies just can’t do it, that any new market disruption comes from an upstart startup. There are, of course, exceptions to this generalization, for example Apple. Mostly though, large companies have an inbuilt need to pursue innovation in markets and fields with which they are already familiar, and to protect their current positions rather than disrupt or cannibalize. They don’t have the
How do corporate culture and recruiting practices influence creativity and innovation? This question has been in my mind while reading some blog posts over the last couple of weeks. Amongst them was one from Scott Anthony in September’s HBR Magazine in an article entitled “The New Corporate Garage”. Scott has laid out some cogent arguments how larger companies will play an even greater role in the development of innovation. Another was from Jose Baldaia, “Rebels, creative and disruptive people, are they a threat”? Jose asked whether companies treat rebels as a threat or a stimulus.
Open Innovation seeks to expand a company’s innovation possibilities by accessing ideas, technologies, products and even routes to market using external partners. Along with the opportunities come plenty of challenges; for example Intellectual Property (IP); the degree to which both partners profit from the alliance; “NIH”; and many others all need to be overcome.
Is it true that the larger your company, the tougher your innovation challenges become? If so, why should this be? It could be argued that more resources, bigger budgets, stronger technology portfolios and greater market access should make companies more successful at innovation. Larger companies usually have a higher number of smart people. They have processes in place that – at least in theory – should simplify the approach to innovation and make it more efficient.
Innovation in products, services and increasingly business models has endless possibilities. This is not just in what you develop, but also in what you communicate. Clearly innovation and communication to customers should be aligned, with the focus on the product benefits that will be most competitive.
I’ve been involved in a lot of discussions over the last twelve months related to the creation of new business through radical or breakthrough innovation. Some of them have been on collaborative work with the innovative market research agency, BrainJuicer. The essence of the challenge can be summarized as: why can’t large companies create new businesses? Many of the potential reasons were described well by John Kearon, the Chie
Many companies are very proud of their achievements, and usually with good reason. There are very few enterprises that have reached a strong market position with a profitable business through luck alone. Everybody likes to be associated with success, particularly if they really have made a contribution.
Innochat is a weekly Twitter chat involving a wide range of really interesting people from all over the world, linked by one thing – a deep interest and passion for innovation. If you’re on Twitter, and want to join, feel free to connect every Thursday at 12.00 US Eastern time, or visit www.innochat.com for more details, as well as the Twitter feed from recent chats.
The concept of Open Innovation (OI) has gained tremendous traction in recent years, as companies realize the potential offered by capabilities, technology and resource outside the organization’s borders. The OI principles outlined in Henry Chesbrough’s eponymous book from 2003 fall into two main areas, “inside out” when your assets are used by others; and “outside in” when you use other people’s. Most OI uses the latter approach, and companies who employ it well need to consider many different things, one of which is how to structure and organize their OI efforts.
