Whether you find your business in the best of times or the worst of times, innovation can help you grow your business. In the best of times, innovation investments will help you increase your existing competitive advantage beyond that of your competitors. In the worst of times, innovation and creativity are your best opportunities to achieve stability, produce new products and services, and optimize your investments.
Consider innovation in the best of times. Apple, Inc., made a new commitment to innovation when it put Steve Jobs back at the helm in 1997. There were still challenging times ahead, but Apple steadily progressed through a launch of new products. Since 2005, Apple has enjoyed progressive growth and returns. Not content to just further improve on the Mac, retail store investments, iPod and new products based on Intel technology, Apple launched the iPhone in January of this year. Time just named the iPhone the invention of 2007 this month. You may agree with me that the iPhone has attendant new-product problems, but it also has some great new features and technology that are groundbreaking. Apple has shown itself to be a company that is great at continuing to build market share in the best of times.
Consider innovation in the worst of times. In 2003, Boeing was beset with the types of problems you want to avoid at all costs...problems with strategy, ethics, trust and alleged impropriety at the CEO level. Focusing on lucrative government contracts yet unable to focus and achieve innovation in R&D were two large issues. How has Boeing returned to market leadership in aerospace in just three years? Boeing's new CEO, James McNerney, established a strategy for a smaller, faster and more efficient aircraft, the Boeing Dreamliner 787. Factors contributing to the success of the aircraft include:
- Significant fuel efficiency over the rival Airbus 380
- The use of innovation through products like carbon fiber that results in lower maintenance costs and reduced weight, i.e. lower fuel consumption and the outsourcing of manufacturing to lower costs
News of aircraft delivery delays recently at Boeing will call for a quick analysis of innovations that have been successful and those that need, well, more innovation.
Both stories are excellent examples of strategy combined with, innovation, technology and improved processes to excel and gain competitive advantage. Yet most executives admit they do not know how to begin to create an environment of innovation. Let's draw on the examples of these companies, great experience and research about innovation, and begin work on your corporate goal to be more innovative this week. Call, or email me, at:
(817) 528-4498, kathy@kathymastconsulting.com
Interesting stuff. I'm no expert, but I read this little factoid a few days ago:
Ford got the idea for assembly line cars by watching his butcher take cows apart.
Translation: innovation does not come from 'traditional' places many times. Unfortunately, many senior people are fairly insular in their thinking and embrace new ideas very skeptically.
Posted by: Phil Simon | March 23, 2009 at 02:43 PM