You know Steve Jobs; in other words, Mr. Innovation, he told that “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you, how you’re led, and how much you get it.” As quoted in Fortune (9 November 1998). This shows the business and leadership strategy of Steve Jobs.
Recently we established Innovation Turkey to cooperate with companies in innovation management. We will focus on leadership development, innovation training, new product design and new business design. We collaborate with companies in Turkey and abroad to ensure that they will achieve competitive productivity, growth, profitability and transient competitive advantages.
I know that some of the companies see the innovation management as an R&D activity. This is a dangerous trap for them! They have to learn and understand the critical importance of the innovation management to achieve competitive productivity, growth and profitability in all of the business activities!
I believe that the urge to hold to company’s established competitive advantage is a vicious trap. We can see the results from Fortune 500 list after 1955. The majority of them are not in the list. They had very popular and great leaders. What was the wrong?
When we look at 10-year analysis study (Global Innovation 1000 - 2014) published by PwC, we clearly see that innovative companies focused on two areas to raise their innovation game;
- Business capabilities.
- Organization and process.
- Developing and implementing innovation portfolio through aligning with customer needs and wants.
- Effective talent management, and developing and retaining right technical people.
- Ensuring that innovation leaders and business leaders are aligned and organizational alignment is being competitive.
- Developing and implementing a long-term competitive intelligence program to ensure the understanding and implementing new products, services, related technologies, trends and customer needs in local and global business world.
- Pursuing lean product development.
- Making sector analysis and performing healthy disengagement on time.
What does it take to win?
- Align your business and innovation strategy
- Don’t focus too much on near-term goals
I know that the success of the corporate R&D is on every C-suite agenda. On the other side, R&D is often seen as a black box due to the huge money invested in innovative products and services that only sometimes come out.
- Be careful! R&D intensity has no clear impact on growth and profitability
- Make strong engagement with your customers
- Define your activity area in innovation
- Make your plan! Service innovation will grow in next 10 years
- Exposure products directly to the end-user
- Keep organizational alignment at the top
- Quantify innovation
- Turn innovation into a habit
- Allocate enough resources to drive innovation
- Engage, develop and motivate your people
- Work with the great people and effective leadersWork with highly effective leaders or experts who have the capability to develop and implement right values and qualities in people to help them experience true success. Work with leaders or experts who master the ability to inspire and build a team that produces not only competitive advantages, but also leaders of the future. They must have excellence in experience, knowledge, skills that include highly valued EQ and long-termist competitive intelligence approach.
- Don’t work with toxic people and leaders
- Make process optimization
- Make competitive intelligence and healthy disengagement
- Give top management support to innovation
- Apply long-term business strategy
- Globalize your business
- Don’t trap into the status quo
- Create transient competitive advantages
- Reward the people and celebrate the success
Do you have the capability to choose, select and develop great leaders?
Do you have investment in training, new product design and new business design? Did you measure and quantify your efforts?
Please share this article and write your thoughts in the comments section below as I learn just as much from you as you do from me. Thank you!
Yusuf Tokdemir is a business advisor, entrepreneur and innovation consultant. He has a proven track record of success in multi-industry.
He is the founder and CEO of the Innovation Turkey . It is an Innovation Management Consulting Company and collaborate with the companies for people training, leadership development, new product design, new service design, new business design and organizes seminars and workshops on innovation management to achieve competitive commercial outcomes.