In the last couple of months, there has been a spurt in my
external speaking engagements on innovation. I am not sure why this is
happening – perhaps its increasing optimism regarding the future, but it could
be something more mundane like this being the preferred “season” for corporate
events. Whatever the reason, it’s been fun to speak to a variety of audiences –
a large multinational known for its print and imaging technologies; a leading
public sector enterprise in defence electronics; a top global brand in denim;
and a home-grown, pioneering consumer products company.
Organizational Rules and Innovation
I was impressed by the young and enthusiastic team of
engineers at the public sector defence electronics company. They were engaged
throughout the session and asked lots of questions.
One engineer was clearly chafing against what he saw as the
rigidity in working conditions – fixed working hours and reporting times,
authority structures, etc. He seemed convinced that innovation would be curbed
under such constraints.
But what we know about innovation suggests that creativity
is only one part of the innovation process. Particularly while validating,
refining and sharpening an idea, discipline and perseverance is critical to the
innovation process. We all know what happens when this phase of the innovation
process is not given the attention it deserves – witness the problems that
Boeing’s Dreamliner has faced thanks to inadequate testing and de-bugging of
new technologies .
So, while the creative mecca might appear to be an
organization that lacks rules and allows employees to come and go as they
please, that might not quite mesh with reality. Take the case of Ideo, often
regarded as the world’s top design firm – I haven’t visited them, but I have
watched the shopping cart video several times, and it shows the team working
morning to night every day. They might be allowed to wear whatever they want to
office and hang up whacky things on the wall, but there is no let up as far as
commitment to work is concerned.
Another interesting discussion was with a passionate
individual contributor at the Indian consumer products company. His hand shot
up almost immediately after I finished my presentation. He voiced his
disagreement with one of the points I had made during the presentation – that
it’s better to align one’s innovation efforts with the priorities of the
company. His contention was that no radically new products or business
opportunities would arise if one stuck to the existing areas of work within the
company.
I explained the history of corporate R&D and how there
was a phase immediately after the second world war when companies thought they
could do almost anything driven by R&D, but how that phase had come to an
end as increasing competition had reduced the resources available to pursue
open-ended research work. Today, except for a few companies which hold
monopolistic positions, few companies are able to afford R&D in areas that
are not aligned to the business priorities of the company. So, if an employee
wants to avoid frustration, and hopes to get buy-in from the business, she has
little option but to work in areas that are likely to be of commercial benefit
to the company.
Want to work on what takes your fancy? Work in a university
or start something on your own if you have the resources to support it.
Consumer Orientation vs. Breakthrough Innovation
One question that comes up often is the link between
consumer research and breakthrough innovation. In my talks, I emphasise the
importance of immersion in the lives of consumers to understand their pains,
identify waves and possibilities for elimination of waste. So, I am often asked
whether this would not result in only innovation to meet the immediate needs of
customers and thereby block any real breakthroughs.
But, in my view, there is a misconception here. Consumer
research doesn’t mean asking consumers what they want as that is bound to be a
limiting exercise resulting in incremental innovation. Good consumer research
means living with consumers, watching how they consume and use products, what
adaptations they have made in how they use products because of the limitations
of products, etc.
Immersion helps understand needs that consumers have
themselves not been able to articulate and to anticipate fresh needs. And, why
was Steve Jobs able to get away without even this level of immersion? Possibly
because he and his team were themselves high level users of many of the
products and services that Apple offered.
How to Increase Velocity
At one of the companies, a big question was how to enhance
velocity and make sure innovation projects move forward rapidly. While support
for experimentation (providing resources and time, creating a culture where
failure is not penalized) is one part of the story, the other is creating
mechanisms to help ideas along their way. One important way of doing this is designing
effective review processes. Every review should be both an opportunity for
learning as well as an opportunity to remove obstacles. Reviews act as a pull
and a pressure – members of the team feel obliged to display some progress
since the previous review. Another useful mechanism is a formal incubation
process.
Tailpiece: Innovation has unexpected scope
One benefit of visiting and speaking to so many companies is
that you get to learn more about their innovations. Somehow, I never thought of
denim and jeans as arenas for innovation – but, I recently learnt that Lee and
Wrangler have tried out a whole range of new things.
Lee has a range called NoSweat that includes PerformAir that
incorporates evaporative cooling; linen-blended denim for a cool and summery
feel; Minerals with micro-encapsulated moisturizers to keep your skin
lubricated; and Fragrant denim that slowly release sweet smells. Wrangler has
jeans embedded with silver dust to act as an anti-bacterial, a boon for people
who don’t/can’t wash their jeans often. And, soon to come is a new denim that
is warm in winter and cool in summer thanks to some revolutionary fabric
research from a company called Coolmax.
Just look at how many things you can do in just one area!
Nice reflections! Good to hear about the enthusiastic participation in a public sector company. Was there a common thread among the key take-aways for the participants?
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