Not too long ago, large companies building products for their customers had the advantage of a 3-year product life cycle. Today, to remain competitive, companies have around 6 months to develop and market with improved product features and/or new products.
The race to stay competitive has a significant impact on the bottom line; if companies don’t get it right, they risk losing market share, and for publicly traded companies that equates to a decline in market confidence and share prices; Research in Motion (RIM) is a good example. To be fair to RIM, for a long time their Blackberry held 100% of the smartphone market, so there was really nowhere to go but down in market share.
So how do companies stay competitive? How do they innovate?
Some basic concepts of innovation;
- Innovation can be a product or a process.
- Innovation solves a social, economic or business problem
- Innovation does not always have to create wealth.
Over the past few weeks I have had the privilege and opportunity to meet with some of the most innovative companies, including Open Text Corporation, GE, Xerox, Roxul, and Desire2Learn. It is thanks to the many people from each of these companies who provided insight into their own processes that allows me the opportunity to shed light on the topic of innovation at the corporate level. My own participation in the RBC Next Great Innovator competition has also given me insight.
1) 20% rules
We know Google’s 20% rule. Google employees are encouraged to spend 20% of their time working on something that is related to the company but interesting to them. Some great products have come out of this 20% rule.
2) Managers are not gatekeepers
In all the companies we talked about a common theme emerged, Managers are NOT gatekeepers. All these companies have various tools to ensure a system of open communication and exchange of ideas. From centralized whiteboards, online forums, and wikis to a simple company suggestion box, employees didn’t have to pass their ideas on to their manager before pitching them to executives.
Managers protect their territory and their role in the company. Sometimes a manager cannot see the long-term benefits that an innovation will have for the company as a whole.
Benefit: One person’s idea can spark the imagination of another person who reads it. Suddenly, the company has a team of people who want to work on the idea or that single idea can be transformed into a series of new products or processes.
3) demo camps
a 20% extension of time, whiteboards and forums; companies hold a showcase (once every 6 months) where individuals or teams can present their ideas. Whether the concept is a mock-up or presented as a working prototype, the entire company has a chance to see what happens in the trenches.
4) internal competitions
Several companies organize internal contests; process or product innovations are presented to decision makers, C-level executives. Yes, the winners get a prize, some companies are giving away tablets and checks. A check in hand, recognition for hard work, the opportunity to see your idea implemented—these are all great motivators for employees. What are a few thousand dollars and a tablet if the innovation generates profit for the company as a whole?
5) ask the client
This one should be a no-brainer; Sorry for the colloquialism, but in reality there are too many companies that presume they know what works for their customers. Involve the client, listen to their requests, their demands and carry out focus groups; let them touch it, feel it, use it, and provide feedback. Still don’t have a working prototype? Bring the client in, show him what you’re proposing, and ask him if it works for him. It’s amazing how many companies assume they know it all. Assuming you do a SSA outside your Y TO ME (sorry I had to mention it for those who haven’t heard or can’t remember).
6) External Competitions – Fresh Perspective
What a great tool for companies to innovate. Create a competition; open it to the public, to schools, or to both; suddenly you have a whole new perspective on your business with the added bonus of new product/service offerings. New insights into old ideas that have been languishing on a shelf somewhere; new directions that no one had time to realize since his head was downstairs working inside the same old mundane machine. apart from those small benefits, there are other benefits; 1) a new pool of potential employees; 2) increased exposure for your business and your existing products/services; 3) increased publicity, a great way to incorporate social media into your business and 4) goodwill.
Canadian companies are losing the innovation battle. What are you gonna do about it? Tea State of the Nation 2010 According to a report released by the Canada Science, Technology and Innovation Council, Canada lacks a “culture of innovation” in business. The report, first published in 2009, compares metrics in 4 broad categories, 1) Resources for R&D, 2) Business Innovation Indicators, 3) Knowledge Development and Transfer Indicators, and 4) Talent Indicators. With very few exceptions, the metrics are not positive; Canadians are less innovative than last year or the year before.
It’s time to get going! Stop complacency and fulfill the unlimited potential your business has to offer.