VALUABLE IN JUST A
WHAT IS INNOVATION
“It is the means by which the entrepreneurial
activity either creates new wealth-producing
resources or endows existing resources with
enhanced potential for creating wealth”
Peter Drucker (HBR, 1985)
BE CLEAR ABOUT WHAT
INNOVATION IS AND IS NOT
Does it change the competitive dynamics of the industry?
Is it new to the industry or just new to your firm?
Is it just copying to catch up?
(Speaking the Lingua Franca of Innovation, HBR, 2012)
Good enough can be great
Step, don’t leap
The right kind of failure is success
(Mapping your Innovation Strategy, HBR, 2006)
NO ONE WILL FORCE YOU
The paralysis of the leading incumbent is the
greatest Competitive Advantage enjoyed by new
WHY GOO AS
5 MYTHS OF
MYTH # 1: THE
• Most innovation efforts fail not
because of a lack of bright ideas,
but because of a lack of careful and
• Smart companies know where the
weakest links in their entire
innovation value chain are, and
they invest time in correcting
those weaknesses rather than
further reinforcing their strengths.
MYTH # 2. BUILD IT
AND THEY WILL COME
• Online forums are not a panacea for distributed
innovation. Online forums are good for capturing and
filtering large numbers of existing ideas; in-person
forums are good for generating and building on new
• Smart companies are selective in their use of online
forums for innovation.
MYTH # 3. OPEN INNOVATION
IS THE FUTURE
• External innovation forums have access to a broad
range of expertise that makes them effective for
solving narrow technological problems; internal
innovation forums have less breadth but more
understanding of context.
• Smart companies use their external and internal
experts for very different types of problems.
MYTH # 4. PAY IS
• Rewarding people for their innovation effort misses
the point. The process of innovating of taking the
initiative to come up with new solutions is its own
• Smart companies emphasize the social and personal
drivers of discretionary effort, rather than the
MYTH # 5. BOTTOM-UP
INNOVATION IS BEST
• Bottom-up innovation efforts benefit from high levels
of employee engagement; top-down innovation efforts
benefit from direct alignment with the company’s
• Smart companies use both approaches, and are adept
at helping bottom-up innovation projects get the
sponsorship they need to survive.
Please join StudyMode to read the full document