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Friday, January 9, 2009

Driving Innovation

Innovate or die is a credo that is truer today than it ever was. But what is innovation really about? Is it about competitive advantage? Is it about reinventing business processes? About Building entirely new markets that meet untapped customer needs? Selecting and executing the right ideas and bringing them to market in record time?
Is it about taking corporate organizations built for efficiency and rewiring them for
Creativity and growth? It is all that and a lot more.

If we briefly look at the history
Of innovation, In the 60’s and 70’s making things cheaper was the way to build
competitive advantage, in the 80’s and 90’s, it was about making things better and as we
ushered into the new millennium it is about making better things.

Innovation today is much more than technology or new products and even more
than just new products, technology or processes, like an orchestra, it is a balanced
interplay of all elements.

How do companies innovate? Let’s see what we can learn from innovative companies. What do innovative companies do differently? Lets take a closer look at some of the world’s top twenty* companies and get a few mantras to successful innovation. (*2005 poll of 940 senior executive in 68 countries by Boston Consulting Group)






Apple is the first name that pops up when we talk innovation. Why? Because it delivers great consumer experiences with outstanding design; works towards a steady flow of new ideas that redefine old categories. Ipod is an excellent example; addition of the iPod to Apple’s lineup essential grew the company’s top-line by 52%!
What’s worked for Apple? To begin with, a focus on "end user experience" - Apple's early music success transcends technology features and is as much about basic human characteristics often overlooked by companies developing new products. What is the measure of success? Clearly people and their feelings. Another key thing is to keep an ear to the ground - How technology was going to change the world of music… Converging technology and how it can entertain. And of course, Organizational culture-Fostering a culture of innovation within the organization is a subject by itself but suffice to say that Apple encourages, supports and rewards new ideas. There are systems and processes to streamline the same and there is tolerance to failure. Apart from the ipod and iphone an interesting innovation from Apple has been The Nike+ bipod Sport Kit, A wireless system where some Nike shoes embedded with a sensor can communicate with Apple's bipod Nan music player to track a runner's performance and help choreograph songs to the moment. The Nike+ bipod Sport Kit, has already won an endorsement from Tour de France champion Lance Armstrong, who plans to run his first New York marathon later this year. Collaboration and convergence is at its best in Apple.


Another company known for its innovative approach is Gillette. It is known for its constant innovative thinking. They maintain focus to innovate at an aggressive pace, ensuring significant Contribution of new products to the bottom line. 50% of Gillette's sales will soon come from products introduced within the past five years, up from 41% in 1996 and twice the level of innovation at the average consumer-products company

What works for Gillette? Firstly, Investment in R&D-To meet product-development challenges, Gillette religiously devotes 2.2% of its annual sales, or over $200 million, to R&D, roughly twice the average for consumer products. Secondly a rigorous and thorough approach- Gillette develops multiple versions of any innovation. For a particular product, they developed seven different versions…Ultimately the winner incorporated many ideas from the six losers and 22 patentable innovations on top of the original idea

Gillette M3Power -- a MACH3 innovation -- was a groundbreaking, powered wet shaving system for men that delivered a totally new shaving experience. Yet another new product ‘Fusion Power’ is Gillette's breakthrough design that features five blades, a flexible comfort guard, and an enhanced Lubrastrip. The combination of adding more blades and narrowing the inter-blade span creates a "shaving surface" that distributes the force across the blades, resulting in significantly less irritation and more comfort.

With every innovation, be it for men’s grooming or getting into women’s personal grooming space, Gillette keeps setting new benchmarks in comfort and performance, again end user experience being key.
Gillette has been acquired by P&G, who also has a reputation in consistently delivered innovative offerings to consumers.


P&G -The Company focuses on continuous product innovation based on understanding of changing consumer lifestyle. They not just breed a culture of innovation internally but also sensitize and seek outside partners for new expertise, ideas, and even products

What works for P&G? Firstly, Technology that makes a difference- Consumer focus, ensuring that products meet active needs or create new needs. Second and most important is rigor in approach -It took eight years, and 180 researchers, to develop a special polymer that helps prevent diaper rash. The result? Ultra Pampers®, and happier babies. And a collaborative approach-The Company that collaborates - inside and out - better than any other company in the world.
Some examples of innovative products available internationally, Crest Whitestrips™, a revolutionary new way to whiten teeth 10 times better than the leading whitening toothpaste, in just 14 days at home, using the same enamel-safe ingredient dentists use. Another example, Dryel®, the novel way to care for dry-clean-only clothes in the home.


As we study innovative companies and what makes them tick, it is clear that they do have some ‘ways of working’ and a culture that is carefully nurtured. All the examples provided interesting learning’s emerged on driving innovations.
The result? Well eight mantras of driving innovation …
› Rigor
Innovation isn’t Botox—inject it in the right corporate places and improvements are bound to follow.
But too many companies want one massive injection, one huge blockbuster, to last them for the foreseeable future.
Unfortunately, successful innovation is rarely like that….it requires rigour

› End user experience-Consumer focus
The new forms of innovation driving organizations are based on an intimate
Understanding of consumer culture-
The ability to determine what people want even before they can
articulate it,
It’s all about end user experience….

› Inclusive vs exclusive (Bottom up/ grass roots level)
Involvement of all ….employees, partners, channel, stakeholders, consumers…Listen to the said and the unsaid…
A great idea can come form anywhere not just an R&D domain, so collaborate to compete
› Demystifying technology
A time when technology is walking more than half way to achieve ease of understanding and hence higher acceptance among user…
Unlike past where a technological breakthrough was first about technology….leaving people in awe and admiration
Demask the Spiderman
› Innovation culture…constantly seeking newness
The organization has to cultivate a culture that breeds new ideas and encourages creative thinking. There has to be no fear of failure, enough stimulus to give wings to imagination and almost mandatory to be in touch with grass root reality of consumers.
Innovative organizations are wired differently

› Creative economy vs. Knowledge economy
The focus of the economic environment has changed….New economic driver is emerging, the "Creative Economy"….
Creative economy vs. knowledge economy- Increasingly, the new core competence for executives is creativity-the right-brain stuff that smart companies are now harnessing to generate top-line revenue growth
The game has changed. It isn't just about maths and science anymore.
It's about creativity and imagination

› Design mojo
Redefining product designs
Innovation in product design combines what is described as “fanatical care beyond the obvious stuff” with relentless experiments into new tools, materials and production processes, to design ground-breaking products as the iMAC, iBook etc.
The iPod is a good example as it is not only a very new product but it clearly turns users’ previous experience and understanding of storing and listening to music upside down.
Devil’s in the design!
› Continuous process
No luxury to rest on laurels…need to be constantly innovative…forcing companies to disrupt their systems and processes from time to time to be in line with the new world order of the business they are in…
Perseverance AND pace… day after day, EVERYDAY!


To sum it up, innovation is not a process, it’s a way of life for the organization, innovation is about fuelling growth, and doing so in a strategic manner, and in a creative manner…Innovation is about trusting the unpredictability of ideas and surrendering to them with passion and purpose alike.

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