The 5 Myths of Innovation

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Presentation transcript:

The 5 Myths of Innovation By Julian Birkinshaw, Cyril Bouquet and J.L. Barsoux Amit Abramovski Roee Sommerfeld

Innovation What is Innovation? New idea, solution, improvement.. In the past: the responsibility to pursue new ideas was by the designers, engineers and scientists. Now days: Innovation is everyone’s job Problems: lack of time, motivation, priorities. The 5 Myths… based on a 3 years research.

Myth #1: The Eureka Moment The Eureka moment: a human experience of suddenly understanding a previously incomprehensible problem or concept. Many big companies makes a big effort to give their people the time and space to have a clear mind for thinking. 5% inspiration and 95% perspiration Examples: Proctor&Gamble, Royal Dutch Shell.

Myth #2: Built it and they will come People just need a platform to express ideas. Web 2.0 – internet tech. online forums Problems: the forum doesn’t take off by it self, irrelevant ideas, “separate the wheat from the chaff”. What to do? Understand the interaction – creative ideas or specific situation.

Myth #3: Open Innovation is the future Looking for the ideas outside the company’s borders LEGO – “created by LEGO fans” Time and investment – external network. Pool of ideas vs Ownership problems. Roche Diagnostics – prob. Solved but needed to get to agreement with the person who solved the prob.

Myth #4: Pay is paramount Material rewards for ideas – extra effort. “Recognition is the reward” Money is a secondary motivator – blocking the creativity. Smart companies (Mars Central Europe) – emphasize the social and personal drivers.

Myth #5: Bottom-Up Innovation is best Managers are not close to the action – need to push the responsibility down the organization. “Let 1,000 flowers bloom” (Google) Turned down ideas – how to deal with the people? Successful innovations – both bottom-up and top-down effort. (Ericsson, Sony, HP)

Conclusion Innovation is the lifeblood of any large organization. Web 2.0 tech. made it possible to get a lot of new ideas from everyone. Online tools, open innovations communities have their limitations. Best approach – understand the challenge.

Capish?