90% Of Companies don't have an Innovation Culture
I was just out in Silicon Valley on a panel on intrapreneurship. As prep, I read that over the last 50 years the average lifespan of a company on the S&P 500 has dropped from 61 years to 18 years (and is forecast to grow even shorter in the future).
Most of the articles said the failures were due to companies not keeping their innovative cultures. In fact, Brandon Kelly, stated that 90% of organizations have no sustained commitment to innovation.
A great counter example to this is Telsa who today is opening its patents up to the industry to accelerate electric vehicle development. Innovation accelerates forward.
What is Innovation? The classic definitions of innovation include:
- the act of introducing something new: something newly introduced (The American Heritage Dictionary).
- the introduction of something new. (Merriam-Webster Online)
- a new idea, method or device. (Merriam-Webster Online)
- the successful exploitation of new ideas (Department of Trade and Industry, UK).
- change that creates a new dimension of performance Peter Drucker (Hesselbein)
So how can we embed innovation into a company's culture?
Innovation is strongly correlated with value creation and is a key factor in financial outperformance. However, only 25% of organizations are good at generating and converting innovations. These companies align innovation goals with business strategy.
Their efforts support the appropriate mix of product, operational and business model innovation that enables them to effectively grow and compete. And, their innovation activities are managed in a transparent program.
Organizations that strategize and manage innovation in a collaborative, open and continuous manner create a source of competitive advantage and economic benefit. Collaboration includes seamlessly engaging all employees in the innovation process and securely including external business partners and customers.
The top ten most innovative companies had two-year compound annual growth rates of 60 percent more than the overall Standard and Poors Global 1200. For these companies, innovation is much more than a “big idea.”
Innovation is an ongoing process of creating value from something new, such as new ideas, new technologies, new products or new processes. For example, 75 percent of successful companies rely on social networks to vet new ideas for success.
They use them for:
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Openly communicating strategy
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Openly generating and prioritizing non-traditional ideas for new products and services
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Innovating operations by teaming with external specialists & business partner
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Innovating business models by combining emerging technologies with biz imperatives to redefine value
Future innovation will be conducted in more open environments and CEOs interviewed for the IBM Global CEO study supported this point. The Innovation Social Business Pattern is designed to increase innovation by providing a wider reach of ideas and to help organizations increase the success and speed of bringing innovation to market.
Primary business processes
The primary business processes for this pattern include research and development, product and service management, business strategy and operations transformation.
Key stakeholders
The key stakeholders are research and development, product development, line of business executives, CMOs, CIOs and CTOs.
Recommended actions
Some specific actions are:
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Deploy collaboration tools for more open communication and to guide innovation toward delivering the type of value desired, such as product versus business model
- Engage the crowd both internal and external to vet new ideas.
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Deploy a portal that combines content, social and advanced mobile features to provide an exceptional digital experience for customers, partners, and employees while managing access by role.
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Deploy social gamification and social influence reward techniques
How does your company drive Innovation?
OUT with the old hierarchy, IN with social! Qumu and Safeway!
For our Coffee Break this week we will explore the vast impact social is having on the structure of companies and how you can prepare your organization for collaboration.
Look to see how Qumu is revolutionizing internal communication. I am here in California and Safeway's are everywhere!
Take a peek at what they are doing!
[youtube https://www.youtube.com/watch?v=CaAHdViIrJc]
As always, let me know your feedback!
Tesla Dishes on Social!
At the last TieCon event in San Fran, some got to go on a Tesla tour! What a great set of learnings but of course, loving social, I took away the following on Tesla, featured in an article in Fast Company, Musk lists 4 lessons we can all benefit from:
1. Own your executive brand – If you don’t somebody else will
2. Humanize your brand
3. Don’t show up and then fall silent
4. Use Twitter as a leadership tool
TiEcon: 4K startups, Watson, BlueMix, IoT and more!
I really had a great time at TiEcon this past week. What an event! From my Internet of Things keynote to the Watson presence and BlueMix workshop, the largest entrepreneur conference in the world was packed with a phenomenal array of business and thought leaders from across the planet!
[youtube https://www.youtube.com/watch?v=ZP-T0ijrtuE]
Alan Godfrey, Bazaarvoice: making the social firehose useful!
As Alan Godfrey, North American Retail, Bazaarvoice points out, digital engagement with the consumer is everything, whether it be via social, mobile or other channels.
Bazaarvoice, a word-of-mouth content company, helps brands understand who is buying what and why. Their ratings and reviews platform helps retailers in many ways, including the placement of products in stores!
[youtube https://www.youtube.com/watch?v=iLmt5Tiuf10]
Learn more about building customer engagement with Bazaarvoice!
Everything you need to know, you learned in kindergarten!
What is the most important lesson of all? That SHARING is what counts! Watch this Coffee Break video to learn why in business it’s no longer what you know: it’s what you share.
[youtube https://www.youtube.com/watch?v=7Qm882Y6XCQ&w=560&h=315]
The Internet of Things Featured at TieCon this week in San Fran!
Happy Monday and welcome to our Coffee Break!
Today we are going to explore the Internet of Things which promises to far surpass the disruption we’ve already seen with the smartphone. You can expect to see vast amounts of data generated opening up whole new industries, like that around the Connected Car:
[youtube https://www.youtube.com/watch?v=EJQxkcsiiyw&w=560&h=315]
I’m looking forward to explore these theme further this week during my TiEcon keynote!
Adena DeMonte, Badgeville on gamification and the psychology of motivation!
As Adena DeMonte, Director, Corporate Marketing, Badgeville, points out in this conversation gamification really can be applied across the enterprise in order to motivate certain behaviors. This involves psychology in the planning of motivation techniques for different roles, and analytics to measure the behavioral outcomes.
[youtube https://www.youtube.com/watch?v=Slm1S3eOntE?rel=0&w=560&h=315]
Learn more about Badgeville gamification solutions
Digital tip of the week – LinkedIn netiquette: how to “behave” in LinkedIn Groups
LinkedIn Groups have become a good source of business information but could easily derive to an incorrect behavior (eg. Use posts for commercial advertising), which can be considered bad netiquette in this network. The LinkedIn Groups normally have their own rules, but there are some general tips to be a good “neighbor” on this social network:
Align the content of your post with the group mission and policies and try to add some value (check with the group manager if you are not sure your post is appropiate)
Try not to create more than one or two discussions per week (if you need more, maybe you should consider creating your own group)
If the group does not have policies, read the atmosphere and see what other people post or the content that seems to get a lot of people’s coments.
Macy’s is dressing each customer with data and social!
I love this Macy's story of their use of Big Data and Social almost as much as I love shopping!!!!!
[youtube=http://www.youtube.com/watch?v=Vb1UJOxB1mY]
And read this case study! The highlights are:
- Macy’s wanted its online store to offer a more personalized shopping experience so they established a more engaging and data driven website.
- With IBM Big Data & Analytics, customer preferences can be combined with recent purchase histories to create personalized recommendations and promotions.
- The result, called "My Macy’s," is a sweeping initiative designed to embed a customer-centric philosophy into every aspect of the company’s operations.
http://www.ibm.com/smarterplanet/us/en/madewithibm/stories/#!story/20