The Clay Christensen school of innovation has been saying this for some time and have published scholarly papers about it — we’re under investing in innovation. In a previous post I talked about the studies that have proven financial models that indicate how much to invest are based on false assumptions. Now, new analysis further supports the argument, see this study from HP Enterprise Business.
People, do we need more proof? Aren’t eminent Harvard professors and a stalwart of the technology industry, Hewlett Packard, enough? The Harvard study is enterprise wide, while the HP study focuses on IT investment. Suggestion: print out both of the studies and distribute them to the executive team of your organization, and schedule a brown bag to talk about it.
How does an organization know if it’s under investing in a more holistic way? Look at your profit centers and ‘age’ them. What profits come from new products or services developed in say the last three years? And if I hear you saying your industry is “more stable” than that, please send me your comments, so I’ll know who to sell short. You are just about ripe for the picking.
If you need more proof now you are burying your head in the sand. Maybe it’s best to keep it there, it might protect your head from the company that is crashing to the floor around you…
2 responses to “More Proof We're Under Investing in Innovation”
Gregg,
This is very interesting. My and I recently completed an “innovation” project and were feeling quite discouraged because it did not turn out to be as profitable as we had hoped.
However, it gave us the opportunity to learn and develop a new product which is serving as a springboard for other business opportunities. Also, our client effectively paid for our R&D.
The key thing I learned from this is that you have to be willing to go out on a limb and commit to something that you are not sure that you can do! It’s kind of like running a brick wall in order to reach Platform 9 3/4 and the Hogwarts Express!
Right on the mark, Gregg. Many organizations do not encourage a culture of innovation. They discourage risk taking and only celebrate wins. And they don’t collaborate with other organizations.
On the plus side, more universities have classes and centers for innnovation and an entrepeneurship. And the Ohio Third Frontier was renewed!