Swinging for the fences
In our paper over the weekend was an article about the X Prize Foundation, a team put together to encourage innovators to solve big problems. The foundation identifies areas of focus and defines a challenge and a prize associated with the solution for that challenge. You may recall that the first commercial flight into space in 2004 won an X Prize.
Now, I'm all for swinging for the fences, but I fear this type of thinking inside a business. Too much focus on one large, completely disruptive idea can distract from the needs for quarter to quarter, year on year growth and profits that other forms of innovation can provide. This kind of thinking in a business can also drain the resources for incremental innovations. What's important in a business is an investment in a range of innovations, some that will pay off in the short run and some that have disruptive capability that may not pay off for several years.
To continue the baseball analogy, a balanced baseball team has a lineup that features hitters who are very adept at getting on base, as well as those who hit more for power than for average. Too many banjo hitters and a team can struggle to move men around. Too many power hitters and a team struggles to get men on base consistently. A balanced lineup ensures a good mixture of both: batters who hit for average and batters who swing for the fences.
In our innovation teams, we need a consistent flow of ideas that demonstrates a solid process and continues to generate new products and services over time. If we become too enamored by the one "next big thing" and neglect the singles and doubles, the new product or service pipeline will dry up, placing even more emphasis and importance on the next big thing. Given that many longer term disruptive innovations fail to achieve the goals set for them, a firm in this position has made an exceptionally big bet on one small set of ideas.
We are asked constantly which ideas a firm should emphasize, disruptive or incremental. In most cases, the obvious answer is that your team should work on both - the incrementals to provide a consistent stream of new products and services for existing customers and the disruptives to attempt to radically change your market or a competitive market.
Now, I'm all for swinging for the fences, but I fear this type of thinking inside a business. Too much focus on one large, completely disruptive idea can distract from the needs for quarter to quarter, year on year growth and profits that other forms of innovation can provide. This kind of thinking in a business can also drain the resources for incremental innovations. What's important in a business is an investment in a range of innovations, some that will pay off in the short run and some that have disruptive capability that may not pay off for several years.
To continue the baseball analogy, a balanced baseball team has a lineup that features hitters who are very adept at getting on base, as well as those who hit more for power than for average. Too many banjo hitters and a team can struggle to move men around. Too many power hitters and a team struggles to get men on base consistently. A balanced lineup ensures a good mixture of both: batters who hit for average and batters who swing for the fences.
In our innovation teams, we need a consistent flow of ideas that demonstrates a solid process and continues to generate new products and services over time. If we become too enamored by the one "next big thing" and neglect the singles and doubles, the new product or service pipeline will dry up, placing even more emphasis and importance on the next big thing. Given that many longer term disruptive innovations fail to achieve the goals set for them, a firm in this position has made an exceptionally big bet on one small set of ideas.
We are asked constantly which ideas a firm should emphasize, disruptive or incremental. In most cases, the obvious answer is that your team should work on both - the incrementals to provide a consistent stream of new products and services for existing customers and the disruptives to attempt to radically change your market or a competitive market.
Voted 2nd best innovation blogger two years in a row!
15 Comments:
Hello, i would like to know more about this topic because i think that could help me in personal projects.
I think that this post is very good, i would like to read more information about this topic.
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
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.
I think that this post is one of the best that i have read in my life, congrats you did a great job,.
the difference between the content spammers and most corporate innovators is that the smaller
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,
If growth is important to a firm, and if growth is dependent on offering existing products and services to new customers
innovation is very natural and happens in the "real world" as new plants and animals colonize new ecological niches.
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
We generally think most specifically about the risk associated with a new product introduction
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.
It's nice to have situations where you can make them fun.
hello, this post is amazing, i would like to read more about it, because think that this information is very interesting.
Teams like "X Prize Foundation" are the teams that every enterprise or company needs. A team who solve problems, who innovate and work hard. Great article and keep up the good work.
safemeds
Post a Comment
<< Home