Tag Archives: Breakthrough Innovation

Why do you Innovate ?

Last week, NASSCOM organized a talk on innovation by Rob Shelton, co-author of “Making Innovation Work“, followed by excellent presentations by two of the previous year’s winner of NASSCOM Innovation awards, Intel India and Sloka Telecom. It was good learning to sit in Rob’s audience and listen to his perspectives on innovation. I liked his (probably) favorite punchline (because he must have repeated it couple of times during his presentation): “How you innovate determines why you innovate“. I think this is a great way to sum up if an organization is undertaking innovation as a strategic differentiator or just to play catch-up on a tactical level.

In his view, the three building blocks of innovation are leadership, culture and process. His perspective is that innovation originates from business strategy could be either a technology innovation or a business model innovation. I think techies who spend a lot of time doing the ‘core’ tech stuff don’t easily recognize the presence or importance of a business innovation, but from a business perspective, it does make a lot of sense. What Apple did with iPhone might not be so much of a technology innovation (because neither the technology nor the MP3 player as a product were really new) but more of a business innovation, especially when you view the entire food chain of iPhone: iTunes allow a seamless integration of iPhone with the music stores and allow maintaining a music library and buying and downloading music as micropayments and choice at song-level (as opposed to the Music CD model of buying per CD even if you all you want is a single song).

When we consider these two factors as primary vehicles of delivery of an innovation, we can consider a 2×2 grid on how close is the change to its existing state. If both technology and business changes are brand-new, then we are talking of Radical Innovation. However in his view, Radical innovation is very infrequent, Breakthrough innovation leads to high growth and Incremental innovation leads to average growth. Breakthrough Innovation is when any one of the axis is new and the other factor is close to an existing one, and Incremental Innovation, as the name suggests, is very close everything exisiting.

I also like the emphasis Rob puts on innovation being a team activity. He calls it a team sport. Of course, if you only think of innovation as an individual sitting through long evenings and coming out with a new super way to do something, that might not conjure up images of innovation being a team sport, but I guess Rob is painting a picture where Innovation is a serious top-down activitiy undertaken at a strategic level, and hence requires the entire affected organization to work as a team.

Rob also talked about ‘Open Innovation’ and what is really meant was ‘opening up of Strategy, Organization and Culture and Practices and Capabilities to achieve best results for an organization. In his view, Open Innovation has a higher ROI. I want to read more on it.

The presentations by Intel and Sloka were awesome. Intel worked on Dunnington chip at its Bangalore centre and built its first chip for the world – a true accomplisment for any remote engineering centre and not just Intel India. Sloka is a 33-person 5-yearold startup that is doing some cool work in building low-footprint and low-cost base stations. Its founder Sujai spoke about how they faced every successive challange to build such world-class products from India without any serious VC money and purely on their talent and grit and determination. May their tribe prosper! 

If the presentation was enlightening and interesting, the Q&A was also lively and interactive. There was a question on when you call an idea ‘failure’ ? Interesting ideas to followup on.

Rob ended his presentation with answers to three questions he started the presentation with:

  1. Why can’t companies develop strong effective innovation ?
    • They are unwilling or unable to fix what is broken or underperforming
  2. Why do companies find it so hard to sustain robust levels of innovation ?
    • They use an outdated strategy or operational model for innovation
  3. How do leaders create meaningful levels of innovation ?
    • They manage innovation as if their future growth depends on it – because it does !

I think these are pretty important questions for an organization in these tough times.

I found Rob’s presentation addressing some core issues with very hard-hitting frankness. He puts the entire onus for an effective innovation strategy on leadership, and believes it can’t be a short-term tactical move just for some small gains. Of course, my favorite is still How you innovate determines why you innovate.

So, why do you Innovate ?