“94% of executives are unsatisfied with innovation performance”. Yet “84% see innovation as important to growth”! Whilst “54% of companies struggle to bridge the gap between innovation and business”. Worse; “very few executives know what the problem is and how to fix it”!
This is the innovation problem.
And we have forgotten the basics. Firstly that “the firm has two, and only two activities: marketing and innovation”. As well as that “people don’t want to buy a 1/4 inch drill; they want a 1/4 inch hole”.
Worse. We cling to old, one-sided, views of value. Where only manufacturers can create value, and users destroy it. The whole focus is the point where value is exchanged for cold hard cash.
And our innovation theories, as well as approaches, developed from the same manufacturing observations.
We can fix the innovation problem. We just need to think differently
We need to become innovation-first organisations; stop trying to bolt-on innovation and build it in. And we must see everything as a service - that help beneficiaries make progress. Finally, we must address innovation resistance.
We need a new definition of innovation. One that embraces service thinking - co-value generation, making progress, etc - which recognises value is not one-sided. And where our solution space naturally becomes much wider.
The ways of thinking, actions and approaches to do this are wrapped up under the name service-dominant logic.
We begin naturally thinking in terms of jobs-to-be-done theory. With blue ocean theory finding a natural home. As do lean and agile approaches.
And, not least, our evolved view of value opens up circular economy thinking.
I've been a Chief Innovation Officer on the front line and experienced first hand the challenges of creating and setting up an innovation initiative in a global account. I have suffered the highs of getting 20+ innovations into an innovation pipeline; only to find getting traction and tangible results a challenge.
So I took some time out, went to the fantastic Business School at Imperial College London to study this innovation problem more. And I started getting introduced to service innovation and the service dominant logic
And now I am now exploring those thoughts more through this site
What's the best way to navigate the articles on this site? Go through the latest articles, or better still: take a journey!
I've organised the articles into journeys, such as "Innovation Essentials" and "Making Service-Dominant Logic more approachable". Flick through the journey's below, or see them collected together in one place.
"Continuous improvement is better than delayed perfection"