The Innovation Paradox
“Innovation is essential for growth”. It’s a management phrase, along with “Innovation is the lifeblood of our business”, that we often hear. These ideas are rarely called into question. Quotes such as Steve Jobs’ “Innovation distinguishes between a leader and a follower” have only cemented the idea as an inalienable truth. Even the government department focused on business in the UK was, not so long ago, called the ‘Department for Business, Innovation and Skills.’
However, the stakes for innovation are incredibly high. The odds are traditionally stacked against success. Recent data from the likes of McKinsey and Harvard Business School suggests that nearly 90% of new product launches fail within their first two years. Even more striking is that while 84% of executives say their future growth is dependent on innovation, yet only 6% are satisfied with their innovation performance.
R&D is the Start, not the Finishing Line
R&D investment is an easy way to measure how innovative a business or sector is. While it’s undoubtedly the first step, it is not a victory in itself. For instance, many projects will never see the light of day. Some may only lead to minor improvements. As the late, former General Electric boss Jack Welch commented, innovation is “not a big breakthrough invention every time.”
Even when lightning strikes, some innovations still fail to take off or have longevity. Step forward, the likes of Betamax, Google Glass, Segway, Blackberry… The list goes on because “new” does not always lead to commercial success.
Building a Culture of Innovation
True innovation is often tangible: it’s something you can see and touch. Nevertheless, an innovative culture goes much deeper. At its heart, it’s about a strive for constant improvement. Finding a better way or seeing opportunities where others see risks. As Jobs said, “Innovation is the ability to see change as an opportunity — not a threat.” Consequently, sales or even the drier, more logical functions of Supply Chain and Finance are all essential to ensure innovation thrives.
In a world quickly being revolutionised by AI, leaders must ask: how equipped is their organisation to deal with the unknown? Can they think creatively? Are they able to collaborate to generate better outcomes? Jack Welch warned:
“Innovation is a constant thing. But if you don’t have an innovative company, coming to work every day to find a better way, you don’t have a company. You’re getting ready to die on the vine.”
Developing the right set of soft skills to foster an innovative culture can be as transformational as a true technological breakthrough. Better yet, when that shiny new product—the result of years of toil and millions of pounds spent on R&D—does finally emerge blinking into the world, your commercial teams are much more likely to make a success of it.
Give your next innovation the best chance of success
Technological breakthroughs don’t sell themselves. We equip your client-facing teams with the adaptable skills and mindset required to navigate the unknown and turn new products into commercial growth.