There are many models for improving innovative performance. For anyone entering the field it is confusing. The supporters of each approach tend to believe their model can apply to all situations. That is only partially true. There are unique models appropriate to different businesses and for different stages of value creation. (See also the related post, Visualizing the Innovative Enterprise.) (more…)
What does an innovative enterprise look like? Steve Denning and I recently discussed this question. He asked, what is the right organizational image that communicates the fundamental ingredients required for innovative success? Consider the figure shown, which is my version of our collaborative efforts.
See also the post, Improving Innovative Performance.
Customer focus: Customers and their market ecosystem, to the right, are the focus of all efforts. As Peter Drucker pointed out, “Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.” If should be obvious, but too few enterprises are actively focused on their customers. (more…)
Can your enterprise or team succeed? I have created two spread sheets that allow you to measure the innovative potential of your enterprise and your project team. I call them the Enterprise Innovative Index and the Project Innovative index. A discussion about their design and utility can be found by clicking on either Innovative Indices at the top of the home page or here.
The Enterprise Index spread sheet is here.
The Project Index spread sheet is here.
These are subjective metrics, but the attributes listed are fundamental to success. My hope is that the indices will stimulate a discussion among your teammates to promote improvement. I have added a few reference enterprises on the spread sheets, including Apple and SRI International. As you will find out, getting a high score is very hard. If Steve Jobs is one of your benchmarks for innovative excellence, then you will understand why. There is a reason Apple has 92% of smart phone profits.
Are we obsolete? There are endless articles about what society will do once artificial intelligence, robotics, 3-D manufacturing, drones, and driverless cars can design, make, and deliver products and services better, faster, and cheaper than humans. Will there be any jobs? What does GDP mean when products are ubiquitous and almost free? Will our world be a dystopia or a utopia? (more…)
Products, Services, and Prospect Theory
Behavioral science is now an influential part of economics. It needs to become a more important part of the discipline of innovation. Although the discussion below is somewhat speculative, it highlights important perceptual attributes of “customer value.” Prospect Theory inspired this discussion, but the focus is quite different. Therefore I call it “Customer Value Analysis,” a model to help better evaluate the relative merits of different forms and amounts of customer value. (more…)