The 5 Myths Of Innovation

 Web based tools - A Web - based application refers to any program that is accessed over a network connection using HTTP, rather than existing within a device's memory.  Ideation - Ideation is the creative process of generating, developing, and communicating new ideas, where an idea is understood as a basic element of thought that can be either visual, concrete, or abstract.

Innovation -As Goal and Mean Produced by employees at all levels. Web base tools – 21% were satisfied with using the web 2.0 while 22% weren’t.

Written at MIT in Process of conduction: 3 years of conduction which included 13 worldwide known companies investigation. 54 people were interviewed.(BBC, IBM, Best Buy) There are 5 myths which emerge from this research.

“Archimedes in his bath or Newton under the apple tree” – the effect of the environment “Innovation is 5% inspiration and 95% perspiration” Survey conducted for 123 companies – managers evaluate their effectiveness at each stage of innovation. Innovation - The struggle Solution – brainstorming and ideation workshop.

Companies fail to think through the consequences of putting ideation workshops: inability to create a follow-up system for conduction. (60 researchers sort 30,000 posts received over 72 hours period) Lack of Capacity to act on the ideas generated. Use ideation workshop: only if necessary. Only if you have resources for investment. Long-term commitment

The emergence of second-generation internet technologies (web 2.0) influence: Positive: Creates involvement in the process of innovation (forums) Attracting visitors and interest. Negative: Doesn't take off - “need a reason to come back” ideas that get posed are off-topic, half-baked or irrelevant (Obama's book)

“So what should you do to avoid these problems?” Understand the types of interaction the occur in online forums, so that you use them in the right way. Building on one another’s ideas – workshop preferred, generate a wide variety of views about some existing ideas – forum preferred.

Open innovation: Companies should look for ideas that lay beyond their formal boundaries. LEGO: Leveraging costumer ideas-Created by LEGO fans. No free lunch: Benefits, costs,property ownership issues and operational costs. Roche Diagnostics, Downsides of open innovation.

External innovation forums are effective for solving narrow technological problems, while internal innovation forums have more understanding of context. Smart companies use both for different types of problems.

Main idea: How to structure rewards for ideas. The theory: Money reward is secondary. The experience of UBS: Recognition of ideas is the most important reward.

Rewarding people for their ideas misses the point. The process itself and recognizing their ideas are the reward itself. Smart companies emphasize the social and personal drivers rather than material drivers.

Top executives are not close enough to the action. Bottom up and top bottom link must be made. Successful innovation requires close attention for both ways. Saying no to a lot of people, sometimes repeatedly.

Bottom-up innovation efforts benefits from high levels of employee engagement, while top-down innovation efforts benefit from direct alignment with the company’s goals. Smart companies use both approaches and help bottom-up projects in getting the sponsorship they need to survive. The best approach involves careful judgment and a deep understanding of the particular challenges a company is facing. By thinking through the pros and cons of each element, companies can manage their processes better.

Thank you for your attention! Questions?