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InnovationConcepts and Case StudiesJune, 2001 Contents Focus on innovation Innovation has a range of meanings and applications Innovation requires the convergence of a range of factors For new ideas to succeed, a business must concentrate on achieving a successful innovation process as well as expecting a successful product Innovation isn’t an intellectual concept - it’s a practical way of fostering new ideas and taking them through to market swiftly, efficiently and cost-effectively to capture commercial opportunities “It takes an average 3,000 raw ideas to generate one winning product”, Industrial Research Institute, Washington DC “It takes 11 serious ideas or concepts to generate one successful new product”, RG Cooper, McMaster University “Some innovations result from a flash of genius. Most result from a conscious, purposeful search for innovative opportunities found only in a few situations”, Professor P. Drucker, HBR Sources of innovation fall into two distinct categories In all cases, the outcome is the creation of something new and transformational Unexpected occurrences Incongruities Process Needs Industry market changes Demographic changes Changes in perception New knowledge That’s the theory – now for the practice How do you encourage innovation within the daily constraints of the job? How do you clear enough space in the day for inspiration? How can you encourage your managers to employ creative thinking? How do you communicate the ideas you have to others? How do you ensure that a framework encourages but does not stifle innovation? What mechanisms are in place to take an idea from inception to maturity? How do you get buy-in from others to develop your great idea? More importantly, once you have a good idea, how do you commercialise the innovation? … Principles of successful innovation Analyse the sources of all new opportunitiesThese will have different importance at different times depending on the context – new knowledge may be of little