The Innovation Value Chain
Organizations typically fall into one of three broad “weakest link” scenarios.
1. First is the idea-poor company, which spends a lot of time and money developing and diffusing mediocre ideas that result in mediocre products and financial returns. The problem is in idea generation, not execution. 2. By contrast, the conversion-poor company has lots of good ideas, but managers don’t screen and develop them properly. Instead, ideas die in budgeting processes that emphasize the incremental and the certain, not the novel. The need is for better screening capabilities, not better idea generation mechanisms. 3. Finally, the diffusion-poor company has trouble monetizing its good ideas. Decisions about what to bring to market are made locally, and not-invented-here thinking dominates. As a result, new products and services aren’t properly rolled out across geographic locations, distribution channels, or customer groups. For such companies, the real upside lies in aggressively monetizing what it has already been able to develop, not in paying further attention to idea generation or idea