Ideas alone don’t drive innovation

Jeneanne Rae at BusinessWeek finds Idea management admirable but doesn’t find it the driver for real innovation.¬† Too often it’s used as the easiest way for management to say they’re collected thoughts and visions for new innovation.

Don’t Look to New Ideas for Growth - BusinessWeek - Jeneanne Rae
“Idea management” is fine, but it shouldn’t be the starting place for innovation

The main reasons for ideal management not being the key to growth and innovation include:

• Too many (ideas) to manage;
• Random ideas are not strategic; and
• The quest for new growth platforms remains elusive.

One of the examples she gives of creating a new growth platform is Apple’s iPod.¬† Apple accomplished this feat with an R&D budget one-tenth the size of Microsoft’s during a period of otherwise flat industry performance.

Where nothing existed in this company formerly known for user-friendly PCs, Apple created something completely new that involved hardware, software, services, and accessories. A recent study by Kaiser Associates said the iPod—along with other Apple products affected by its halo—created $70 billion in shareholder value in just three years.

Jeneanne provides some guidelines for looking for growth and innovation:

• Don’t start with ideas;
• An innovation agenda is key;
• Great ideas require insights;
• Visualization is the primary communication tool.

The bottom line is that great companies use a systemic approach to innovation that involves a defined process and operating model. They also have a keen awareness of the market, appropriate tools, and significant know-how.

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