We want to invent the next iphone
I can’t tell you how many times we’ve heard this or its equivalent (just insert your industry’s killer app in instead of “iPhone” above).
Because most companies have incremental and next-generation innovation down – it’s the disruptive, non-core, “next big thing” innovation that eludes many and presents the most challenges.
Yet this type of innovation is a necessity for any business that wants to access new markets, create a new line of revenue, or re-invent themselves in anticipation of future directions.
So here’s my question: what happens AFTER you conceive the next iPhone (or killer app for your industry)?
Beyond the frontend
Even though this blog and associated conferences highlight the “frontend” of innovation, the fact is, we cannot ignore the backend of innovation at the beginning of the innovation process! Especially because many companies are front-loaded for bringing in new ideas (e.g., they may have dedicated technology scouts or new business divisions)… but don’t necessarily have the infrastructure, commitment, critical mass, experience, channels, and more to execute on those ideas once they come in.
For example: if you’re a printing company that wants to move into digital, what happens to the sales force, customer support, marketing, and all other business functions that are entirely oriented towards the core business? There’s a paradox here, because on one hand these functions should be focused on the core business in order to be successful – yet this very expertise can be a handicap when faced with the changes resulting from novel innovations.
In other words: you can invent the iPhone, but your business might not be able to successfully absorb it and do anything with it.
And that’s the fundamental tension between incremental and disruptive innovation, which presents a very different set of challenges and risks for all kinds of companies regardless of size. What challenges do you see??
By Tamara St. Claire, Vice President, Global Business Development at PARC, a Xerox company. As Vice President of Global Business Development, Tamara St. Claire is responsible for managing PARC's commercial portfolio and driving both domestic and global strategic partnerships. She joined PARC in 2009 to explore new markets and industry engagements, centralize PARC's business development activities, and align the organizational strategy with a systematic portfolio management process. Dr. St. Claire holds a Ph.D. in Chemistry from the University of California at Davis, and an MBA from the University of California at Berkeley Haas School of Business.
Front End of Innovation conference in Boston on May 16, I’ll be discussing some of the challenges of managing disruptive innovation – especially for companies figuring out how to enter new markets – and will share some case studies, lessons learned, and a portfolio management framework from PARC, which today is in the business of disruptive innovation for multiple clients…