Defining the Scope of Innovation
- Focus on common technology
- Focus on market theme
- How much will the innovation initiative cost?
- How likely is to actually become commercially viable?
- How much value will it add (what will it be worth if it works)?
- What will be learned if it does not pan out?
Managing the Pace of Innovation
- How long will it take for an innovation initiative to realistically come to fruition?
- Incremental typically shorter than radical
- Radical innovations often begin with a long period of exploration in which experimentation makes strict
- Incremental innovations use milestone approach that is more driven by goals and deadlines
- Time pacing can be a source of competitive advantage—helps a company manage transitions
- However, radical innovation often involves open-ended experimentation and time-consuming mistakes
- Some factors cannot be rushed
Staffing to Capture Value from Innovation
- 4 important factors:
1. Create innovation teams with experienced players who know what it is like to deal with uncertainty
and can help new staff members learn venture management skills
2. Require that employees seeking to advance their career with the organization serve the new venture
group as part of their career climb
3. Once people have experience with the new venture group, transfer them to mainstream mgmt.
positions, where they can use their skills and knowledge to revitalize the company’s core business
4. Separate the performance of individuals from the performance of innovation; ot