Doing more of the same old product improvements, extensions and modifications – product renovation – won’t deliver the sales and profit impact needed to grow the business. To the great majority of businesses, product development means line extensions, improvements and product modifications and only serves to maintain market share. Firms increasingly compete for a piece of a shrinking pie by introducing one insignificant new product after another. The launch of a truly differentiated new product in mature markets is rare these days.
From incremental to breakthrough innovation projects, managers need to handle different activities and with them dissimilar venues of risks. In this article the internal, external and hidden risks of incremental, differential, radical, and breakthrough innovation projects are identified and ranked accordingly. In addition, for every category a general innovation eco-system has been analyzed.
How might you foment authentic breakthroughs through collaborative innovation? The fuzzy front end, by name and nature, fails to lend itself to foregone conclusions. Yet, as the innovation practitioner, you can take certain steps that increase the likelihood of achieving breakthroughs. In this article innovation architect Doug Collins explores the most critical steps for people who see the practice as a means of transforming the organization.
Organizational ambidexterity is becoming a Key Factor for Success in many industries. With a proper ambidextrous set-up, firms can optimally balance radical and incremental innovation.This is part 1 of a 3-part article co-written by innovation-3’s Frank Mattes and Ralph-Christian Ohr from Integrative Innovation. In this article we are showing the need for organizational ambidexterity, introduce the concept, show how it can be implemented and provide two case studies from leading German firms
Status quo bias is a proven cognitive bias that exists in all normal people. Innovation, especially breakthrough innovation, requires veering from the status quo. As a result, the average managers is all too likely not to approve a highly innovative idea, not because of any intrinsic flaw in the idea, but because the idea would require change. You need to work around this bias if you truly want your company to innovate.
Frequently, brainstorms, idea campaigns and similar idea extravaganzas end with a vague notion of choosing the best idea. The problem here is that a truly creative idea, the kind of idea that has the potential to become a breakthrough innovation is seldom the best solution to the problem or the best path to achieving a goal - for the very simple reason that highly creative ideas are original. They cannot directly be compared to existing notions, warns Jeffrey Baumgartner.
Do you often find yourself procrastinating on important, yet non-urgent matters in order to take care of the stuff that needs immediate attention? This all-too-common circumstance also takes place on a larger scale. Bengt Järrehult walks us though how to deal with the incremental and breakthrough projects at the same time
Resourcefulness amid serious constraints is known in India as ‘Jugaad.’ In this article, Accenture’s Mitali Sharma suggests this simple concept — which gave birth to a $2,500 car, a $12 solar lamp, and a life-saving incubator made from car parts — might be the antidote to the complexity plaguing your innovation process.
If they want to compete successfully in the future, companies should hold off on rapid ideation and faster commercialization until they take an unflinching look at what is truly stifling breakthrough innovation. In this article, Soren Kristensen provides insight on how honest self-reflection can free you from your biggest impediment to growth.
Consider this all too familiar scenario: Company X’s new products developed and launched with great expectations, yield disappointing results. Yet, these products continue to languish in the market, draining management attention, advertising budgets, manufacturing capacity, warehouse space and back office systems. Wouter Koetzier explores how to avoid the innovation death spiral.
When you need to develop ideas, don't just focus on generating a large quantity of them. The originality of them is even more important. That's when you should consider Jeffrey Baumgartner's anti-conventional thinking technique.
Crowdsourcing and customer-focused innovation are very popular today. But by themselves, they're not a very good way to achieve breakthrough innovation, warns Jeffrey Baumgartner.
How can you build a team that is innovative, dynamic and capable of finding breakthroughs for tough problems? How can you avoid repeating dreary routines and find sparkling new ideas instead? What can you do to turn a division 2 team into Premiership winners? One way is to make sure that among your solid citizens you have a good sprinkling of rebels, according to Paul Sloane.
When companies start up a new venture to explore a breakthrough innovation, there are many challenges. Some are operational, but others are caused by the ways in which leaders and managers typically think about their work. Vijay Govindarajan and Chris Trimble, in their new book, 10 Rules for Strategic Innovators, describe how companies often get lost in the gap between the beginning of the innovation process, were creativity is needed, and the end of the innovation process, were efficiency is needed.
product development in many industries. Moreover, the percentage of ideas that make it from lab to consumer is low. One factor that affects the probability of success is how innovators look at a given development challenge or problem.