Innovation needs a culture that encourages entrepreneurship and innovation.
Entrepreneurs have the ability to take underperforming assets and make them perform and innovation itself is the bedrock of wealth creation.
In a narrow context – that of radical innovation), innovation can be defined as applying technology to something that is completely new, then marketing it successfully. Having a good idea is not enough, innovation is only real when someone pays for it, when you have turned the idea into something that you can make and sell.
–Create an environment that is not based on hierarchies, where the doors are open to anyone with a contribution to make.
–Have a Culture of integrity; if you do not have that, then you will not have a business in the long run.
–Have a good team of people. No single individual can ever really build and run a business. Success depends on the team working cohesively towards the same, well understood goal.
–A lot of innovation fails because of sloppy execution, lack of proper analysis or planning, or general management incompetence, not because of the idea itself. There needs to be a commitment to driving the business forward. There is a big gap between ideas and execution, and it is in the execution where most ventures fail.
–It is not good enough to just have a potentially big market. You have to be able to access it. You have to have specific goals and strategies to achieve those targets. And you need a sense of urgency.
–Getting realistic feedback is important for any manager. You always hear the good news pretty quickly but it is far more important that you get the bad news and that you get it early and do something about it. Much like IDEO’s culture of fail-first-faster to succeed sooner.
–In the long run, the only way a business can survive is through continual improvement in productivity and through innovation. The way to improve productivity is by applying technology to what you already do. Innovation is about turning ideas into something that you can make and market.
–Innovation needs to be exciting and intriguing, but it also has to pay the rent.
1. The right culture: Encourage entrepreneurship and innovation.
2. Profitable innovation: Apply technology to something new, and market it aggressively.
3. Execute well: Get innovation processes right at the start of a project.
4. Develop a sense of urgency: Make things happen quickly.