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Innovation Isn't Just About New Products

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Govindarajan-Jatindesai The innovation mindset isn't just about product innovation.

Some organizations have focused on product innovation for so long they don't know how to innovate in any other areas. For example, in 2010, Microsoft -one of the world's best product innovators for the last two decades - launched a social phone called Kin. The product was a complete disaster. Within six weeks of the launch, the entire product group was shut down, and, according to their earnings reports, Microsoft took at least a $240 million write-off.

How could such a great product innovator strike out so fast? In today's climate, it happens to the best.

Most organizations focus on building short-term product innovation engines. However, most products have little sustainable competitive advantage and never generate a profit; those that do are often quickly copied by the competition, negating any long-term advantage. The result: a significant investment in product development, without a commensurate return on investment.

To achieve sustainable growth, companies must better integrate product innovation with business model, process, and service innovations.

Read the entire article at Harvard Business Review >>

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This is quite interesting! Well MS may have lost 240 mios but I suspect they have continued on the path of innovation and not repeat same error. 
I quite like the way write.

posted @ Tuesday, October 15, 2013 12:18 PM by Suresh Ogale

Here at Covidien we are committed to a broad approach to innovation and even have a strategic imperative to Broaden the Innovation Focus. A perfect example of this commitment is our Innovation Award program which recognizes outstanding efforts and results in four areas of business, culture, products and technology. The R&D group manages the products and technology side and our Innovation Council manages the business and culture side where we recognize innovations in business models, portfolio management, promoting a culture of innovation among other business related functions. We have recognized innovations from such groups as Finance and the legal staff. I can't remember the last time a lawyer was considered innovative! 
I completely agree that only by building an innovative company culture can you produce the kind of real innovations that build lasting business success. 

posted @ Wednesday, October 16, 2013 2:49 PM by Dana J. Landry, Ph.D.

The underlying problem is well known, nevertheless too few care about it: risk aversity and short term financial targets. Never mind how good the innovation culture in a company is, I have rarely seen a company that is fully committed for the big shot to be commercialised in 5 or 10 years.

posted @ Sunday, October 20, 2013 10:23 AM by Jonas

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