Professional Documents
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Innovation is also a social process—it takes The idea that innovation must embrace both the
place within modern organizational cultures and blue sky and the practical is neither new nor radical,
environments. In complex organizations, it requires yet we cling to our fascination with the home run.
collaboration. It is a team sport rather than the work of Life-changing, transformative inventions, and the
a lone genius. heroic stories of their inventors, are so much more
interesting than incremental innovations that build
The requirement that innovation should lead to upon existing products, methods, or technologies. Yet
new profit streams is what makes the innovation this exploitative, incremental form of innovation creates
process complete. Without this condition, innovation enormous value for companies and customers. Former
is meaningless to the firm. Unless new ideas can Procter & Gamble chairman and CEO A.G. Lafley has
be converted into products or services that people stated that since World War II P&G has laid claim to
want to buy, and unless the conversion can be done just 17 disruptive innovations—major breakthroughs
efficiently and effectively enough so that the new idea that created entirely new consumption and account
leads to profit, there is no innovation. Great ideas for more than half of the company’s current revenues.
count; originality counts; but in a business context— In the same time, P&G has put out a steady stream of
the context of commercial innovation at the firm hundreds, if not thousands, of incremental innovations
level—usefulness trumps. Innovation is the route that that sustain the company’s profitability. “While always
invention takes to get to market. actively seeking the next killer product, incremental
innovation drives P&G’s sustainable growth model,”
Innovation must therefore be viewed as not mere says Lafley. “There has to be a balance between
invention, but as a disciplined and repeatable process disruptive and incremental innovation.”10
that leads to value creation and enhanced business
results. It is within this disciplined view of innovation John Hagel, former McKinsey & Co. consultant, and
where quality methods are applicable and, one can John Seely Brown, former chief scientist at Xerox, say
argue, necessary for success. that innovation must be freed from “the tyranny of the
The need to integrate innovation and management Innovation doesn’t happen on an island
discipline is cited by both management experts and As more organizations acknowledge that innovation
innovation thinkers. involves more than just the R&D function, the
Quality management expert A.V. Feigenbaum imperative to integrate innovation processes with
believes that there must be simultaneous management mainstream management practice has expanded to
encompass processes, logistics, strategy, operations,