Innovation Without an Innovation Strategy is Frustrating

Despite massive investments of management time and money, innovation remains a frustrating pursuit in many companies. Innovation initiatives frequently fail, and successful innovators have a hard time sustaining their performance—as Polaroid, Nokia, Sun Microsystems, Yahoo, Hewlett-Packard, and countless others have found. Why is it so hard to build and maintain the capacity to innovate? The reasons go much deeper than the commonly cited cause: a failure to execute.

The Root of the Problem

The problem with innovation improvement efforts is rooted in the lack of an innovation strategy. This is because an innovation strategy is essential to make sound trade-off decisions and choose the right practices. It’s the only way to determine which innovations are worth pursuing and how to prioritize resources.

The Impact of a Lack of Strategy

When companies fail to develop a comprehensive innovation strategy, they are likely to fall into the following traps:

* Pursuing multiple, unrelated innovations simultaneously, wasting resources and distracting the organization.
* Failing to prioritize, leading to mediocre performance and unfulfilled expectations.
* Relying too heavily on technology or process innovation, neglecting the importance of business model and market innovation.

A Holistic Approach

To break the cycle of innovation frustration, companies must adopt a holistic approach to innovation that includes:

* Defining the company’s innovation goals and priorities.
* Developing a clear and compelling innovation vision.
* Establishing a strategic innovation portfolio.
* Building capabilities and skills required for innovation.

The Importance of a Strategy

Innovation strategy is essential because it allows companies to:

* Align innovation efforts with business objectives.
* Make trade-off decisions based on strategic priorities.
* Select the right practices and tools.
* Measure innovation performance and progress.

Conclusion

Innovation strategy is the missing link in the pursuit of innovation excellence. It’s the foundation upon which companies can build sustainable innovation capabilities, make sound trade-off decisions, and choose the right practices. By adopting a holistic approach to innovation, companies can overcome the frustrations of innovation and achieve sustainable success.

Q: What is the root cause of innovation frustration?
A: The root cause of innovation frustration is the lack of an innovation strategy.

Q: Why is an innovation strategy essential?
A: An innovation strategy is essential because it allows companies to make sound trade-off decisions and choose the right practices.

Q: What are some common traps companies fall into without a strategy?
A: Some common traps include pursuing multiple, unrelated innovations, failing to prioritize, and neglecting business model and market innovation.

Q: What is the key to achieving sustainable innovation capabilities?
A: The key to achieving sustainable innovation capabilities is to adopt a holistic approach to innovation that includes defining goals, developing a vision, establishing a portfolio, and building capabilities.