Archive — Innovation

Why big companies squander brilliant ideas — Tim Harford

Why big companies squander brilliant ideas — Tim Harford

How inflexible organisational structure could be one of the main inhibitors of innovation. This article is full of fascinating examples, but I found the Sony example the most striking.

…the silo that produced the PlayStation had almost nothing to do with the silo that produced portable CD players. The Memory Stick Walkman was like the tank: it didn’t fit neatly into any category. To be a success, the silos that had been designed to work separately would have to work together. That required an architectural change that Sony tried but failed to achieve.

Seemingly, there’s no straightforward answer to this:

Kodak’s position may well have been impossible, no matter what managers had done. If so, the most profitable response would have been to vanish gracefully.

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Nine ways to unlock creativity in your organisation

Nine ways to unlock creativity in your organisation

A reminder why finding the right problem is often more important than finding the right ideas.

[M]ost of our organisations don’t suffer from a lack of ideas, they suffer from a lack of process that identifies the ideas worth having…

Creativity is not innovation. Creativity is a prerequisite for sure. Innovation, however, is the practical application of creativity.

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Does benchmarking really save companies from failure?

Does benchmarking really save companies from failure?

Why comparing yourself against your competitors often leads to mediocrity.

Best practice and benchmarking are often just a race to be first at being average. The chances of someone else’s best practice working in a different environment is unlikely.

Not only is it unlikely but the very act of best practice and benchmarking can drive standards down. It encourages all organisations to think alike. At sector level it creates groupthink, and we all know groupthink is the avowed enemy of innovation.

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Keeping digital teams happy versus keeping customers happy

Keeping digital teams happy versus keeping customers happy

Gerry McGovern tells the story of trying to persuade a digital team of what they needed to fix.

“It would be nice to fix these problems,” one person said. “But the team needs also to be able to do exciting things. We need to be able to innovate.”

Unfortunately, people at work often place too much emphasis on their own enjoyment. But our work only has meaning if it is providing value to someone.

Work shouldn’t be exciting. There’s a job to do.

See also:

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Hacking your innovation mindset

Hacking your innovation mindset

Design thinking is about being a problem finder, not just a problem solver.

This line has reminded me of a project or two from the past year. Some of my biggest eureka moments have been around understanding what the problem actually was, and not what I had been told it was.

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The Dunning-Kruger effect in innovation

The Dunning-Kruger effect in innovation

The Dunning-Kruger effect describes the phenomenon whereby people with relatively little experience feel a high degree of confidence. This point is known as Mt Stupid.

Following this is the valley of despair, where the person loses their confidence, before slowly climbing the slope of enlightenment. The shape of this curve is strikingly similar to the Gartner hype cycle.

It is always tempting to think that I myself was atop Mt Stupid a couple of years ago, thereby making me on my way up the slope of enlightenment. However, I think this every time I see it.

This article makes the wise point that you can be on the slope of enlightenment for some issues, and still climbing your way to Mt Stupid on others.

However, given that the human condition makes it difficult for each of us to realise the limitations of our own knowledge, we’ll have to live with temporary outbursts of hubris. There is no reason to be self-complacent. Everybody is a wise expert in only a few things, while still climbing Mt Stupid in many, many others.

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The most popular strategies companies use to save money also kill innovation

The most popular strategies companies use to save money also kill innovation

An interesting take on business process improvements such as Lean and Six Sigma. It suggests that while such process improvements improve reliability, they also make innovation plummet. Moreover, the effects are difficult to spot because they take so long to emerge.

Innovation requires different ways of doing things, and this is exactly what this system ends. But they don’t tell you that in the ISO9000 handbook, do they?

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