Executives have long noted the disjuncture between corporate R&D spending and innovation. Nokia for example was for years one of the largest R&D spenders in the world, yet for all this spending missed the smartphone revolution. Even companies known for innovation, make expensive mistakes. Google’s major effort around Google+ involved creating a team of over 1,000 individuals, creating a secret building close to their CEO, and following up with a major PR blitz once the project was launched. Four years later, Google is winding down the project.
So what are our alternatives? Increasingly we see successful companies taking a leaner, faster, and ultimately cheaper route by using a range of “innovation enablers” such as hackathons, innovation labs, and incubators/ accelerators. Meanwhile innovation management tools help create “idea markets” within organizations. Finally, the rise of open data and open application programming interfaces (APIs) mean companies can create new data-driven services and products, cheaper and faster than ever before.
Last week my colleague Charles Green held a webinar examining the rise of these innovation enablers. Here are some of the key points from the discussion:
In addition to using these “innovation enablers”, I believe we must also embrace a shift in our mind-set. The principles of design thinking provide a unique approach to solving problems. For example, in software development, by combining design thinking with Agile development we can better approach the problems which our customers come to us to help with (and sometimes identify solutions they haven´t considered), while iteratively developing and improving the software.
What has been your experience with these techniques? Are you re-evaluating your R&D budget and expenditure? Have you trained your team in the principles of design thinking?
February 13 / 2020
December 17 / 2019
Digital technology enables organizations to boost productivity and better engage with customers. However, many technology initiatives continue to see cost overrun, damaging the bottom line and undermining the value...Read post