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Anticipate. Innovate.Future Think LLC
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© 2005–09 Reproduction prohibitedNew York NY
 
|
 
www.getfuturethink.com
Innovating In Good Times & In Bad
Lessons rom 12 Global Innovators
 
Anticipate. Innovate.Future Think LLC
|
 
© 2005–09 Reproduction prohibitedNew York NY
 
|
 
www.getfuturethink.com
May 2009
 
uture
think
 
Innovating In GoodTimes & In Bad
 Lessons rom 12 Global Innovators1
Anticipate. Innovate.Future Think LLC
|
 
© 2005–09 Reproduction prohibitedNew York NY
 
|
 
www.getfuturethink.com
In the current economic climate, the discipline o innovation is taking a dierent orm. Leadingorganizations recognize the importance o investing in their uture to be in a stronger competitive positionin a post-economic crisis world. But what exactly are companies doing to stay ahead o the curve and howare they building their innovation programs to accomplish this?To understand the best practices, tactics, and techniques or driving a successul innovation program,uture
think
conducted a series o interviews with leaders and practitioners within the eld. The interviewsoer a unique insider’s view into the world o innovation – what makes it work, what holds organizationsback, and what critical advice new innovators need to know to be more successul with innovation overall.To gain a holistic understanding o these best practices, we spoke with a cross-section o innovators atboth corporations and government organizations, within product- and service- driven industries, and at theleadership and practitioner level, globally.What’s the secret to success? Five main themes rom the interviews percolated to the top:
1. The importance o defning innovation.
Nearly every innovator with whom we spoke expressed theundamental need to dene what innovation is in the context o one’s organization and its goals.
2. Embracing ‘innovation inside.’
Given the current state o the economy, innovators are increasinglyocused on quick, inexpensive, low-risk ways to innovate internally. This type o innovation includesoptimizing and streamlining internal processes, dening new customer segments, creating newdistribution channels, or communicating both internally and externally in new and dierent ways.
3. Shiting rom problem-solvers to problem-defners.
In the past, many organizations simply went aterideas and innovation without rst dening the problems these ideas were meant to solve. But now,when resources are tight, organizations are realizing the importance o careully dening problemsrst beore seeking innovative solutions.
4. Role o the innovation team: one size doesn’t ft all.
Each organization we spoke with had somesort o ormal innovation role built in, but the structure and role o this team varied across the board.Some groups were ocused on acilitating and evangelizing innovation across the organization, whileother groups ocused on building ideas and seeing them all the way through to launch.
5. Rewarding is more about ‘how’ than ‘how much.’
When it comes to rewarding and recognizinginnovation, there is no single correct method. Depending on a given organization’s culture, innovationrewards look very dierent.In the ollowing pages, we’ll take a closer look at each o these ndings. We’ll also share some o the adviceour leading innovators had to oer to those who are just embarking on the innovation journey.
 
uture
think
 
Innovating In GoodTimes & In Bad
 Lessons rom 12 Global Innovators2
Anticipate. Innovate.Future Think LLC
|
 
© 2005–09 Reproduction prohibitedNew York NY
 
|
 
www.getfuturethink.com
1. The Importance o Defning Innovation
The rst key to innovation success in an organization is creating a clear understanding o what constitutesinnovation or the organization. Is it a breakthrough idea or does it include incremental productenhancements? Does innovation only reer to R&D and product development or does it include otheraspects like process improvement and creating new customer segments? Organizations dene innovationin dierent ways. At Estée Lauder, innovation is tied very closely to new product development; whereas atSandia National Laboratories, innovation is predominantly about breakthrough, game-changing ideas. Aclear understanding o how your organization denes innovation will shape the nature and structure o yourinnovation eorts.“Be clear with your denition o innovation and be really clear about the mandate or innovation within yourbusiness,” says
Amanda West
, Chie Innovation Ocer o Thomson Reuters. She recognizes that deninginnovation also includes setting goals or your eorts. What do you want to accomplish with your innovationprogram? What’s your roadmap or getting rom where you are now to where you want to be?Part o dening innovation involves creating a shared lexicon or everyone within your organization.Unilever’s Global Leader o Innovation Process Development,
Mehmood Khan
stresses the need or “acommon language, a common process, and a common system” around innovation. This ensures thateveryone clearly understands the mandate or innovation and that they are all moving in the same directionto achieve the same goal.Ultimately, it’s about building an innovation stewardship program to actively engage employees in theorganization’s innovation eorts – sharing examples o past innovations, highlighting successes and ailures,and encouraging the involvement o all employees in the idea submission process. This is the rst step inbuilding a truly innovation-driven culture.
“A lot o people call innovation ‘things thatcreate improvements by 5 or 10 percent.’ But,i I employ new to the world, truly disruptivetechnologies, then I’m changing the paradigmso that I see ‘orders o magnitude’ improvement.That's a whole dierent kind o innovation. AndI suggest to you that what we have ound is thatthe way you manage those programs, i you areto be successul, is terribly dierent than theway you manage the evolutionary programs.”
SANDY SANZERO, SANDIA NATIONAL LABORATORIES
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