Why innovation

Innovation is exciting because:

• Innovation creates new markets and new products. In that sense, it brings the future to us. Alternately, we can define the future or bring it ourselves by pursuing innovation.
• Innovation drives growth. Good innovation can bring in significant revenues for your company through revenue streams that did not exist before. Innovation creates jobs.
• Innovation differentiates. It is a compelling differentiation strategy. It sets you apart as a leader in the area.
• Innovation destroys old competencies and creates new ones. Through breakthrough innovation, you can kick the old products and technologies in their teeth and create new desirable atributes for your customers. Innovation changes the game where competitors cannot build these competencies overnight. It can help you leapfrog competition and leave them behind in the dust.
• Innovation creates and defines your culture. It rejuvenates. Innovation culture, of which we will discuss quite a bit in this blog, is an important mandate for the company bosses, an area which is poorly understood and recognized.

Scott Berkun feels innovation is overrated in his blog on Harvard Business.

http://discussionleader.hbsp.com/berkun/2008/07/why-innovation-is-overrated.html

A few quick comments on Scott's article:

• Customers may not complain about lack of innovation for several reasons: a) Their expectations of the present customer experience may keep them from thinking of a better experience. In other words, they may not know what is feasible and hence stuck with reality. b) Customers are driven to complain with sub-optimal user experiences, very few have the wherewithal or skillset to suggest a better product or service. c) Complaints are opportunities to innovate.
• Scott argues that inventors typically do not use the word innovation and there are better words to describe what they do. Since innovation has not been defined well, this is not surprising. Also, the end product of the words he likes ( problem, experiment, solve, exploration, change, risk and prototype) is usually innovation. Unless we define innovation, what is good and bad innovation, and the varying degrees and levels of innovation, we are doomed to not recognize it as such and call it out as such. Later in this blog, we will define the examples Scott uses (Apple iPhone, Google Search engine) within the continuum of innovation. Once we do that, we will recognize innovation on its merit and categorize it accordingly.
• Finally, Scott argues that we should really focus on making great things, which requires "a commitment to craft, an attention to detail, and a love for work that has always been rare". I cannot argue with that. However, these inventors did learn to innovate and perfect their ware. Whether we call it innovation or something else, those skills are worth learning.

Finally, innovation is about doing.