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Gwen Smith Ishmael, Sr. Vice President of Insights and Innovation at Decision Analyst in Arlington, TX, has led marketing and new product development activities in the CPG and technology industries since 1986. She also conceived and developed ground-breaking Web-based promotional vehicles, two of which are patent pending. Gwen holds an MBA in Marketing and is a featured speaker on insights and innovation around the world. Her writings have been featured in international text books, most recently in Managing 4 Ps of Marketing FMCG Sector, and Product Innovation: A Strategic Tool for Growth, by ICFAI Publications, 2006 and 2007, respectively.

Founding Author

Renee Hopkins Callahan Renee Hopkins Callahan started IdeaFlow and serves as chief blog-wrangler. She is Director of Innovation Services at Decision Analyst in Arlington, Texas, is a former journalist who worked as an editor and reporter for The Dallas Morning News and the Nashville Tennessean, and was managing editor of D, the Dallas city magazine. She has a master's degree in rhetoric and has also taught college-level English and informal logic.
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« What Drives Innovation? | Main | The conditions of possibility for innovation »

October 26, 2004

More on innovation drivers

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Posted by Renee Hopkins Callahan

In the two years since I've been writing IdeaFlow, I've never posted anything that has received the response than What Drives Innovation? has received.

It's a good thing, because I do intend to continue to explore that topic. Because there've been a lot of comments on the blog, and a lot of you only see the posts in email, I'm going to summarize and comment on some of the comments here in a post. To read the entire set of comments, clickhere

John Wolpert commented by email that I should take a look at Eric von Hippel's The Sources of Innovation . Wrote John: "Eric von Hippel is the undisputed leader of this sort of inquiry. His Sources of Innovation is a staple, and I'm sure you've heard of or read it. There is quantitative support for your point there in his research on user-driven innovation, but I can't recall where in his studies the lion's share of sources came from."

I've got the book, am looking at it, but haven't yet found appropriate quantitative support for my point. I agree with John though -- von Hippel's focus on the economics of innovation (or, an "analysis of the 'temporary rents' or economic profits expected by potential innovators) does speak to my idea about the drivers of innovation. Von Hippel's focus was narrower -- he was looking for the "functional source of innovation," while I would like to be able to
sketch out all the sources in a given situation, or all the possible sources. Not all of these sources are going to be functional, by von Hippel's definition. But they will still be drivers.

David Locke commented: "Product managers show up after version 1.0. Customers start getting heard sometime after that. You might also notice that innovation moves from radical to continuous with the advent of the product managers. If we want to change this, we need to start with independent product managers that have a collection of widely distributed, heterogeneous customers. These product managers would in turn establish a market for the requirement orginating from this network."

Also -- "Typically, marketing is going to bias the customer base away from the heterogeneous. ... Does this imply that the company has no chance to find a radical innovation after the advent of the product manager? Is the arrival of the product manager the end of radical innovation?"

My take -- According to Clayton Christensen, the established customer is never going to be the source of radical, disruptive innovation. Christensen places part of the blame on traditional marketing segmentation, and I don't disagree. But perhaps it's more simple -- customers drive continuous innovation, while consumers drive radical innovation. By "consumers" I mean people who are NOT customers yet, because they have needs you are not meeting, that are quite radically different form the needs of your existing customers. Anthony Ulwick writes a lot about this too.

Naina Redhu listed some external factors other than customers: regulations, the market, competitors, and global changes. These are great additions to the external drivers I had mentioned: new technology which may be coming from outside), competition, suppliers. What's fascinating to me is that the particulars of the list will probably be constantly shifting. It would be great to sketch out the overall picture, though.

Ben Simonton commented: "Innovation drivers will always exist, but whether or not they will be noticed and acted upon mostly depends on the extent to which company leadership causes employees to use their brain at work." He went on to describe a "superior leadership strategy" that will make employees innovative.

He brushed up against something that's important but that I did not point out in my original post -- that primarily it will be company employees who notice and act on innovation drivers. I think this is true for the most part whether the drivers are internal or external.

Amy Pearl responded to Ben's comment, saying that she had just left a company that had a reputation as an innovators, but "I learned that innovations encounter huge resistance when they run against what has been defined as "standard practice" or they fall outside those groups charged with "being innovative". While it is clear that standards need to be in place, there is a new need to create internal strategies that enable innovations (especially with proven track records) to be recognized and examined for the value they might bring to the larger organization."

She asked a question I'm going to put out to everyone: "I would be interested in learning what new procedures, policies, or practices companies are adopting or developing to literally identify and recognize, and subsequently analyze, true innovations. What do companies do, in concrete terms, that raise up a new practice or strategy and allow it to flourish, as well as be explored? I have enjoyed reviewing Deloitteinnovation.com as a company that seems to have figured out ways to support its growth... Any others?"

Comments (4) | Category: Innovation Drivers


COMMENTS

1. john blue on October 27, 2004 11:04 PM writes...

In the Oct 11 2004 Business Week, the main theme was Innovation.

Steven Jobs of Apple has a great response to the question "How do you systematize innovation?"..."You don't. You hire good people who will challenge each other every day to make the best products possible. That's why you don't see any big posters on the walls around here, stating our mission statement. Our corporate culture is simple."

http://www.businessweek.com/magazine/content/04_41/b3903408.htm

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2. David Locke on October 28, 2004 3:13 PM writes...

Amy Pearl's experience echos mine. When I went to work for a semiconductor company, I had some IP I didn't want to give them, so I was hesitant to sign the IP agreeement. When it was all settled, the company lawyers said that the company would not be interested in my ideas, because I wasn't an engineer.

The dominant culture controls the company's innovation, and semantics.

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3. Jeffrey Baumgartner on November 9, 2004 5:40 AM writes...

An interesting discussion you have started there, Renee.

Motivating corporate innovation also touches upon a critical issue that is largely ignored in innovation: organisational versus individual innovation. It is relatively easy to determine what motivates an individual to innovate. Indeed, you can write it into a book, give the book to the individual and very possibly she will agree with what is in the book and behave in a more innovative manner.

Moreover, if she runs a small company - with no more than a handful of staff - she can even use what she has learned to make her company more innovative. Small individually owned and operated companies are generally motivated by the owner manager.

But, a medium sized or large company cannot pick up a book and be motivated to be more innovative. Likewise, the CEO cannot wave a magic wand and transform her company into an innovative one, no matter what she has just read.

And while one might assume that if a large company was full of innovative people it would naturally be innovative itself, that would be wrong.

In fact, medium to large companies need to have several things in place across the enterprise if they really want to be innovative...

1) An innovative culture that cultivates innovation across the enterprise. An innovative culture must create an environment where people can takes risks, it must not punish people for having ideas that do not succeed and, most importantly, it needs to be thick with trust. People need to trust their organisations before they will risk sharing a daring idea with it.

2) An idea management system that facilitates submission and collaboration of ideas by all as well as provides tools for capturing, evaluating and implementing good ideas by management. Large companies without an idea management tool simply have too many hurdles for people to submit ideas. The situation is even worse when someone in one department - for example accounting - has an idea relevant to another department such as marketing. Without an enterprise wide idea management system, the accountant's idea will never be developed.

3) A budget for implementing radical, high risk ideas. If the final decision on ideas is based on conservative financial calculations, a lot of radical ideas will never happen. That is not to say that companies should devote all their budget to high risk ideas. But they should devote a percentage off it to such ideas.

Only when a company is so prepared to be innovative can it start to really innovate. And then, its motivation comes from a variety of sources:

1) Meeting top management's goals
2) Meeting customer needs
3) Increasing shareholder value
4) Increasing profits
5) The multitude of motivations of the individual employees and, in particular, the motivations of the more extroverted, natural leaders within the organisation.

Keep up the good work!!

Jeffrey Baumgartner
jpb.com - helping companies innovate better

Permalink to Comment

4. john blue on November 10, 2004 7:51 PM writes...

Not just an idea management system but the culture to encourage ideas to be entered, the understanding how those ideas advance, the knowledge and acceptance that some ideas will be killed off, and the drive by submitters to want ideas to be created and implemented.

Unfortunately, most corporate cultures take ideas but don't know, don't care, or don't have ability to advance ideas into an idea pipeline to transform ideas to reality.

Ideas are free (everyone has one and freely offer them). It's the pushing that idea to reality that requires energy, time, money, and commitment.

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