Thursday, January 19, 2006

Innovation and the last war

I don't know which way to feel about this topic. I was reviewing the latest report from the InnovateAmerica site, whose tagline is "Innovate or Abdicate". This is a group sponsored by the Council on Competitiveness to focus on improving innovation in the US. I think many times think tanks present solutions that solve problems we're already working on and miss or distract the real upcoming problems. In military lingo, they are fighting the last war.

In the research, InnovateAmerica has released a report or a better a survey of senior executives from 200 companies in the US. The report calls out a lot of the things you'd expect:

1. New ideas are coming more and more from suppliers and customers over internal resources
2. Engineering and scientific talent are ranked as the most important asset to improved innovation
3. Top barriers to innovation include poor internal infrastructure and lack of internal talent
4. Over 40% of productivity gains in a business can be attributed to innovation alone, yet
many CEOs rank innovation below low price and quick delivery in attractiveness to customers
5. Most innovation is defined as extensions to existing products

So, what to make of this?

Well, it's a good thing that ideas are coming more and more from suppliers and partners, but I think that was fairly evident. What bothers me about a lot of these findings is that it feels like we are fighting the last war! If 80% or more of our economy is based on services, why do we need such an emphasis on scientific and engineering talent? I am going to assume, although I could not find it in the writeup, that most of the people who participated in the survey were from the manufacturing or product sector. There's simply too much emphasis on product-focused innovation.

And another thing - which CEOs place more emphasis on low price and quick delivery? Sony didn't. Apple didn't. But Dell does. Is Dell an innovator? Possibly with it's business model but not in its products.

That's another problem with this research - a lot of innovation is focused today on business process innovation, business model innovation and service innovation, not product innovation. Sure we want to provide goods and services at low prices, but we can command greater margins and more loyal customers by providing valuable and differentiated goods and services.

Innovation should be about more than simply cutting costs, yet that seems to be the primary focus of the people who wrote this research. We should consider more than just product innovation, yet this research does not dive deeply into business model or service innovation.

We're building the innovation maginot line and missing the service innovation revolution.
AddThis Social Bookmark Button
posted by Jeffrey Phillips at 7:33 AM

38 Comments:

Anonymous Scott Arthur Edwards said...

Check this out for FREE...

This opportunity says:

"Your Ad" Will Be Instantly Displayed on Thousands of Websites and Read By Over 10 Million People Per Week For FREE, and It Only Takes 60 Seconds To Get Started!

To find out more visit: Build Your Business Online site. It successfully exposes FREE information covering Traffic and Build Your Business Online related stuff.

10:51 PM  
Anonymous Anonymous said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done... Without having to leave your home, talk to anyone or sell anything... Then READ the following message to find out more... The AntiBusiness

11:55 PM  
Blogger Scott A. Edwards said...

Check this out... Dear friends, Now you can help yourself take advantage of the huge surpluses of FREE advertising in your spare time, in the comfort of your own home. Hook up NOW with this exiting program. Click here: FREE INFORMATION

12:10 AM  
Anonymous Online Generic Viagra said...

Now Days , China is focusing and spending vasts sums of money to promote technology and innovation.

12:07 AM  
Anonymous Negocio rentable said...

hello, this day I've been searching for information on various issues, this I found very good and I would like to congratulate you for your work.
Inversiones en petroleo

9:02 AM  
Anonymous how to stay erect said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:29 PM  
Anonymous wisata kuliner bandung said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:29 PM  
Anonymous belajar internet marketing said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:29 PM  
Anonymous delayed orgasm said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:29 PM  
Anonymous delaying ejaculation said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:29 PM  
Anonymous how to last longer in bed said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:30 PM  
Anonymous how to avoid premature ejaculation said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:30 PM  
Anonymous how to prevent premature ejaculation said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:30 PM  
Anonymous how to prolong ejaculation said...

i agree with you. i had similiar problem and i used what you ave taught and it worked like magic

11:31 PM  
Anonymous Invertir en oro said...

Used. Case is a bit worn but contents in good condition.

9:16 AM  
Anonymous konsultan seo said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:50 AM  
Anonymous asuransi pendidikan said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:51 AM  
Anonymous action coach said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:51 AM  
Anonymous jadi artis said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:51 AM  
Anonymous cara dapat duit said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:52 AM  
Anonymous kerja sama investasi said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:52 AM  
Anonymous coach indonesia said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:52 AM  
Anonymous jajanan bandung said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:52 AM  
Anonymous coklat valentine said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:53 AM  
Anonymous Panduan SEO said...

Warning: If you would like to make big money doing only 30 minutes per day of the easiest work you've ever done...

1:53 AM  
Anonymous konsultan perusahaan said...

I think people fear idea management and innovation because there's a significant number of ideas that simply won't plan out.......Nice statement.....keep posting

10:48 PM  
Anonymous belajar internet marketing said...

this day I've been searching for information on various issues, this I found very good and I would like to congratulate you for your work.

10:48 PM  
Anonymous parcel lebaran said...

I think that this post is one of the best that i have read in my life, congrats you did a great job,.

10:48 PM  
Anonymous delayed orgasm said...

the difference between the content spammers and most corporate innovators is that the smaller

10:49 PM  
Anonymous how to avoid premature ejaculation said...

I'm writing to you because I just came across a business that I think has great potential. It lets you save money on almost everything. Make money from almost everything,

10:49 PM  
Anonymous konsultan seo said...

If growth is important to a firm, and if growth is dependent on offering existing products and services to new customers

10:49 PM  
Anonymous tabungan pendidikan said...

innovation is very natural and happens in the "real world" as new plants and animals colonize new ecological niches.

10:50 PM  
Anonymous mengecilkan perut said...

I wonder how you got so good. This is really a fascinating blog, lots of stuff that I can get into. One thing I just want to say is that your Blog is so perfect

10:50 PM  
Anonymous how to avoid premature ejaculation said...

We generally think most specifically about the risk associated with a new product introduction

10:50 PM  
Anonymous easy way to get pregnant said...

I would be aware that as somebody who really doesn’t comment to blogs a lot (in actual fact, this may be my first put up), I don’t think the time period “lurker” is very flattering to a non-posting reader.

10:50 PM  
Anonymous stop pre ejaculation said...

Thanks a lot for this time sharing of innovation about INNOVATION AND THE LAST WAR. This is really the best website about innovation i have ever read.

8:44 AM  
Anonymous alat ternak said...

thanks for sharing

8:44 AM  
Anonymous cure hemorrhoids naturally said...

I look forward to another article. It would be nice to have, too.

11:55 PM  

Post a Comment

<< Home