Key Traits of Leading Innovation Companies

Innovation Best Practice leading Innovation Companies demonstrate common traits: Strategic Intent Market Insight Pampers evolved from a product with a functional benefit to a trusted baby- care brand. Tools and Processes Organisation for Innovation Variety of Sources

TraitDescriptionExamples Strategic intentThey recognise the strategic role of innovation and the contribution it can make to the success of the business. The innovation strategy is integrated with and driven by the business strategy.  The Healthcare strategy at GE has targeted the expected $250bn shift from disease treatment to diagnosis over the next 10 years. GE is focused on creating new capabilities and products to answer key elements of this need. Market insightThey understand who their customers and stakeholders are, and deliver against real needs. They test opportunities and concepts early.  Proctor and Gamble brands are built on the premise that the “Consumer is Boss”. The Proctor and Gamble model relentlessly focuses on very specific definitions of the end consumer. Each business unit annually produces a consumer Top 10 needs list (e.g., “reduce wrinkles”); and for each need develops a scientific problem to solve Tools & processThey recognise that there are processes for managing and delivering innovation on a continuous basis and different processes to handle disruptive, potentially large opportunities. Innovation is managed within agreed processes and is not left to chance. They demonstrate excellence in execution.  Pepsi, while having an effective process to manage incremental innovation, recognised the need for and implemented a different “options based” process to manage disruptive innovation.  While recognising the importance of highly engaged individuals and teams in driving ideas, Apple Inc. has rigorous processes to manage and focus innovation activity. Organisation for innovation They recognise how resources, roles, metrics and culture impact on innovation. The right mix of skills in entrepreneurial, high performing teams is used to promote innovation. Resources are mobilised quickly to address potentially large future opportunities.  Google are the Largest employer of PhDs in computer science and maths in the USA and have hired many luminary internet scientists. At Google, failure is viewed as critical and inevitable with the focus being on “good failures”.  GE is Transforming from an efficiency powerhouse to one that values bold ideas and now rates managers on traits such as “imagination and courage” Variety of sources They recognise that good sources of innovation may be outside of their organisation. Many organisations proactively look for external sources of innovation.  The Johnson and Johnson “Licensing and acquisitions unit” of 125 VPs plus staff, spends 90% of their time on the road looking for investments opportunities  The Proctor and Gamble “Connect and Develop” initiative has delivered a number of successful innovations generating significant new sales revenue.  Apple Inc. brought together the capabilities of a diverse but complementary range of business partners to deliver the iPod