Wednesday, May 10, 2006

Optimize Magazine - "Top-down Innovation" - May 2006

An interesting article from Optimize's Bob Violino that looks at what potential barriers CEOs need to overcome to push the innovation agenda in their companies.

Some of the most interesting findings are from the recent IBM Consulting
survey of 765 CEOs that found out that "Without a supportive corporate culture, proper funding for investment, and a cooperative workforce, even the best plans for innovation will

The article as a whole has some very interesting insights, albeit with a bit
of a heavy technology bend on it (not surprising considering the bulk of
Optimize's readers are in IT), but the three charts provided by IBM were of
particular interest: 

I frequently see culture continuously blamed for a lack of innovation within
a company, yet in reality culture is rarely ever the real culprit. In the
triumvate of key innovation factors (Leadership, Culture, Processes) - the
cultural differences between the top and bottom companies is not that great. I
don't know if that's a residue from the knowledge management days when everyone
was hell-bent on improving knowledge flow, increasing collaborative work
practices, and dissuading knowledge hoarding - but the simple fact of the matter
is that most companies have employees who have absolutely no problem or lack of
desire to contribute ideas to help the business. (see the chart below to see the
proof of that!) - rather the problem is almost always that they lack the
necessary processes to allow them to contribute in meaningful and effective
manners - or they lack leadership that truly encourages and supports innovation activities.



In addition to inadvertently laying to rest the "culture issue" - I
also found the above chart interesting to see the increasing importance of Open
Innovation - especially the somewhat controversial recent idea of collaborating
with competitors.

It was also very interesting to see an increasing number of CEOs now focusing
on Business Model Innovation - which would suggest that as innovation is
becoming more ingrained in the organisation, companies are beginning to look for
innovations that will have a longer lasting impact on the business.

Great stuff!


1 comment:

Anonymous said...

What Exaclty does Business Model Innovation mean ?

Are we talking about expaning into new business ?, Changing the organization to function differently in existing business ? or something else ?