Generating and Implementing Ideas
Editor's Note
August / September 2006
Volume 4 Number 4
It's a mixed blessing when "innovation" becomes part of an advertising slogan. On the one hand, the slogan promotes the idea; on the other, it becomes a catchphrase lost in a flurry of other slogans.
Ford Motor Co., for example, has latched onto "innovation" with a vengeance. The company proclaims it is "driving American innovation" and also allows that "innovation is our mission" (and never mind that it it was Toyota that introduced the first popular hybrid—€”the Prius—€”and not Ford.)
Still, American industry is at least talking about innovation. Several months ago, IBM played host to the 2006 Business Leadership Forum in Rome. IBM's CEO, Sam Palmisano, sounded the alarm:
"The bottom line of all this is that innovation is really a —€˜must do' unless we want to live in an environment that's commoditized and not unique, not differentiated," he said. "And that's acceptable, but you're in a model of constantly taking out costs, fighting for scraps of pennies in a very crowded marketplace." In other words, you don't have to be high-minded about this innovation thing; just think about your business and whether you want it to flourish.
Speakers and panelists at the forum shared some insights, collected by IBM, and well worth repeating here.
Innovation is essential. Globalization is inevitable. Ubiquitous connectivity is breaking down physical borders and creating connections between people, economies, organizations and governments in ways that were never thought possible.
It's about being unique. In this age where competition for talent and brand share is critical, businesses need to cultivate their uniqueness. They need to encourage an environment that allows people to be open, to be multi-disciplined, to be collaborative and to be global in their thought process.
The speed of change is much faster—€”and more disruptive—€”than seen before. The goal amidst all this change is to find value in the marketplace. Whether it's innovation for money or whether it's innovation for business, society or for governments, the binding force in the end is trying to see the problem differently, to find new value quicker than anyone else. This is what the 21st century is all about—€”and it's all just beginning.
CEOs must pay attention to the implication of change among employees. Done incorrectly, change can create fear and uncertainty within organizations. Unless it is properly managed, too much change can be a great disaster for companies. Leaders must establish a course, a plot and a purpose to lead their people. Constant reorganization is futile. Instead, leaders must look at a company's structure strategically, consider which pieces need to shift and then unfold change bit by bit.
Technology plays a leading role in innovation, but it isn't the only factor. What were once disruptive technologies now are commodities. Technology can be the establishing basis for innovation, but people are the ones that drive it forward. Technology is really only the mechanics of the process. Real innovation is about great people generating and then implementing new ideas.
One idea, then, is to be careful about reducing innovation concepts to advertising slogans. Hucksters promising innovation doesn't make it so. Mostly, it's all about changes in attitude; doing business in the same way with the same ideas isn't going to work any more. Innovation, as Palmisano said, really is a "must do."
—€”Bob Cochnar
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