As a consultant, the most common questions I am asked are, “Why should I invest in innovation?” and “What is the ROI (return on investment) from innovation?” Let’s forget about me and just look at innovation - why should YOU invest in innovation?
So back to the most important issue with innovation - is it worth it?
Greg Satell’s article in Forbes, “Innovation Is The Only True Way To Create Value” states:
Innovation is … valuable because it raises the productivity of both capital and labor.
Jeff De Cagna in his “The Six Core Values of Innovation” says quite simply:
While the pursuit of innovation cannot absolutely guarantee meaningful growth, it is the best strategy most enterprises have for achieving it in a way that can become sustainable over time.
The Harvard Business Review published an article “Value Innovation: The Strategic Logic of High Growth” by W. Chan Kim and Renee Mauborgne. I completely agree with their approach.
Why do some companies achieve sustained high growth in both revenues and profits? … The less successful companies took a conventional approach: Their strategic thinking was dominated by the idea of staying ahead of the competition. In stark contrast, the high-growth companies paid little attention to matching or beating their rivals. Instead, they sought to make their competitors irrelevant through a strategic logic we call value innovation.
There are more experts willing to share their definition of and value from innovation. The question is really not if there is value in innovation. The question is if your organization is ready for innovation and how you are going to innovate. The next series of articles will be about preparing to create an innovation strategy. Then we’ll discuss how to to create the innovation strategy and, eventually, rolling out innovation at your organization.