There is a very interesting article over BusinessWeek outlining the hype that the innovation term has gained lately. Most of the companies around the world are declaring that innovation is a building block of their strategy, but few of those companies actually grasp the true dynamics of innovation.
As the articles suggests, some managers believe that if they shout the term frequently and loud enough maybe customers will perceive their companies are truly innovative.
Quoting the article “In recent months, a wave of books, articles, and studies from major consulting firms, business-school professors, and design experts have surfaced that aim to get beyond the hype. They analyze real-world examples, taking away concrete lessons about innovation ROI, the conditions that lead to success, and the most common reasons for failure, especially in new product design.”
Investing in R&D is not enough (and perhaps not necessary) to foster innovation. Ford Motor Company is one of the biggest R&D spenders on the world, and they also claim to have a strategy built around innovation, yet recently it registered a record loss of over 12 billion dollars…
In order to solve those problems companies should go back to the basics, aiming for innovations that create value and increase the bottom line instead of sticking with complex process and techniques of doubtful value.
You can read the full article here.