by Robyn Bolton | Jul 22, 2024 | Innovation
“This time feels different.” I’ve been hearing this from innovation practitioners and partners for months We’ve seen innovation resilience tested in times of economic uncertainty and geopolitical volatility. We’ve seen it flourish when markets soar and capital is abundant. We’ve seen it all, but this time feels different.
In fact, we feel a great disturbance in the innovation force.
Disturbances aren’t always bad. They’re often the spark that ignites innovation. But understand the disturbance you must, before work with it you can.
So, to help us understand and navigate a time that feels, and likely is, different, I present “The Corporate Innovator’s Saga.”
Episode I: The R&D Men (are) Aces
(Sorry, that’s the most tortured one. The titles get better, I promise)
A long time ago (1876), in a place not so far away (New Jersey), one man established what many consider the first R&D Lab. A year later, Thomas Edison and his Menlo Park colleagues debuted the phonograph.
In the 20th century, as technology became more complex, invention shifted from individual inventors to corporate R&D labs. By the late 1960s, Bell Labs employed 15,000 people, including 1,200 PhDs. In 1970, Xerox’s famed Palo Alto Research Center (PARC) opened.
Episode II: Attack of the Disruptors
For most of the twentieth century, R&D labs were the heroes or villains of executives’ innovation stories. Then, Harvard Business School professor Clayton Christensen published, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail.
He revealed that executives’ myopic focus on serving their best (most profitable) customers caused them to miss new waves of innovation. In example after example, he showed that R&D often worked on disruptive (cheaper, good enough) technologies only to have their efforts shut down by executives worried about cannibalizing their existing businesses.
C-suites listened, and innovation went from an R&D problem to a business one.
Episode III: Revenge of the Designers
Design Thinking’s origins date back to the 1940s, its application to business gained prominence with l Tim Brown’s 2009 book, Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation.
This book introduced frameworks still used today’s: desirability, feasibility, and viability; divergent and convergent thinking; and the process of empathy, problem definition, ideation, prototyping, and testing.
Innovation now required businesspeople to become designers, question the status quo, and operate untethered from the short-termism of business,
Episode IV: A New Hope (Startups)
The early 2000s were a dizzying time for corporate innovation. Executives feared disruption and poured resources into internal innovation teams and trainings. Meanwhile, a movement was gaining steam in Silicon Valley.
Y Combinator, the first seed accelerator, launched in 2005 and was followed a year later by TechStars. When Eric Ries published The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses in 2011, the US was home to nearly 1o0 startup accelerators.
Now, businesspeople needed to become entrepreneurs capable of building, and scaling startups in environments purpose-built to kill risk and change.
In response, companies spun up internal accelerators, established corporate venture capital teams, and partnered with startup studios.
Episode V: Reality Strikes Back
Today, the combination of a global pandemic, regional wars, and a single year in which elections will affect 49% of the world’s population has everyone reeling.
Naturally, this uncertainty triggered out need for a sense of control. The first cut were “hobbies” like innovation and DEI. Then, “non-essentials” like “extra” people and perks. For losses continued into the “need to haves,” like operational investments and business expansion.
Recently, the idea of “growth at all costs” has come under scrutiny with advocates for more thoughtful growth strategies emerging There is still room for innovation IF it produces meaningful, measurable value.
Episode VI: Return of the Innovator(?)
I don’t know what’s next, but I hope this is the title. And, if not, I hope whatever is next has Ewoks.
What do you hope for in the next episode?
by Robyn Bolton | Jul 18, 2024 | Podcasts
by Robyn Bolton | Jun 26, 2024 | Innovation, Leadership, Strategy
It’s not easy leading innovation. Especially these days. You need to do more with less. Take risks while guaranteeing results. Keep up with competition through incremental innovation and redefine the industry with radical and disruptive innovation. It’s maddening. Until you find the Goldilocks Zone of adjacent innovation.
Adjacent Innovation: From Middle Child to Just Right
As HBS Professor Regina E. Herzlinger and her co-authors point out in a recent HBR article, the US is in the midst of an innovation crisis. The cost of lost productivity, estimated at over $10 trillion between 2006 and 2018, is a stark reminder of the economic consequences of a lack of innovation. This figure, equivalent to $95,000 per US worker, should serve as a wake-up call to the importance of innovation in driving economic growth.
The authors identify the root cause of this loss as the ‘polarized approach companies take to innovation.’ While companies focus on incremental innovation, the safe and reliable oldest child of the innovation family, the VCs chase after radical, transformative innovations, the wild, charismatic, free-spirited youngest child. Meanwhile, adjacent innovation – new offerings and business models fo existing customers or new customers for existing offerings and business models – is, like the middle child, too often overlooked.
It’s time to rediscover it. In fact, it’s also time to embrace and pursue it as the most promising path back to growth. While incremental innovation is safe and reliable, it’s also the equivalent of cold porridge. Radical or transformative innovation is sexy, but, like hot porridge, it’s more likely to scorch than sustain you. Adjacent innovation, however, is just right – daring enough to change the game and leapfrog the competition and safe enough to merit investment and generate short-term growth.
Proof in the Porridge: 4x the returns in ½ the time
Last year, I worked with an industrial goods company. Their products aren’t sexy, and their brands are far from household names, but they make the things that make America run and keep workers (and the public) safe. The pandemic’s supply chain disruptions battered their business, and their backlog ballooned from weeks to months and even years. Yet amidst these challenges, they continued to look ahead, and what they saw was a $6M revenue cliff that had to be filled in three years and a product and innovation pipeline covered in dust and cobwebs.
From Day 1, we agreed to focus on adjacent innovation. For four weeks, we brainstormed, interviewed customers, and analyzed their existing offerings and capabilities, ultimately developing three concepts – two new products for existing customers and one existing product repositioned to serve a new customer. After eight more weeks of work, we had gathered enough data to reject one of the concepts and double down on the other two. Three months later, the teams had developed business cases to support piloting two of the concepts.
It took 6 months to go from a blank piece of paper to pilot approval.
It took just another 12 months to record nearly $25M in new revenue.
Those results are more than “just right.”
Be Goldilocks. Pursue Adjacent Innovation
Every organization can pursue adjacent innovation. In fact, most of the companies we consider amongst the world’s “Most Innovative” have that reputation because of adjacent innovation.
How will you become your organization’s Innovation Goldilocks and use adjacent innovation to create “just right” growth?
by Robyn Bolton | Jun 10, 2024 | Innovation, Leadership, Stories & Examples, Strategy
I recently listened to a podcast in which the speaker talked about his hike to Machu Picchu. He spoke about the difficulty of the hike and the moments when his confidence wavered. “But ultimately,” he said, “I was so compelled and pulled onward by the opportunity to see such a wonder, that I was able to push through.”
That was not my experience.
Many years ago, I did the same hike (in three days instead of four due to a scheduling error). And at no time did a feel “compelled and pulled onward.” In fact, about halfway through the first day’s hike, I had a complete meltdown in the middle of a beautiful grove of flowering trees. Luckily, I was so far behind the rest of my group that only my guide saw and heard the half-hour, expletive-laden beating of walking sticks against trees as I accused him of leading us to our deaths.
A few hours later, we reached our camp and the sherpas gave me tea and popcorn as they prepared dinner. I don’t know what was in the tea, but I felt much better after a cup and was grateful that a steady supply was offered throughout the next two days.
WHY you start matters
It was not the “opportunity to see such a wonder” that put me on the path. It was FOMO (fear of missing out), knowing that my friends were going on an adventure and not wanting to miss out.
Opportunity or FOMO. One of those is at the start of every journey and steels your mindset for the work ahead. If you see opportunity, you’re optimistic, resilient, and maybe even a bit idealistic. If you’re afraid, you rush through things, missing important signals and only seeing how far behind you are.
Companies do the same thing with innovation. They see a new technology, trend, or framework appear, sense an opportunity to use it to kickstart growth and leapfrog competition, and they start building. Or they see a new business model or competitor gain share and rush to mimic their approach.
WHAT you choose along the way determines how you end
It wasn’t “knowing where my journey was going, and what the journey was all about” that kept me moving forward. It was the knowledge that, unless I planned to join one of the Indigenous communities we passed through, I had to keep going.
No matter how you start, you will face a choice – continue, stay, or turn back – and that choice determines how your journey ends. If you turn back to the old ways because the new ways failed, you’re giving up. If you stay where you are, you’re stuck somewhere between the safety of what you knew and the opportunity ahead. If you keep going, you’ll stay ahead of those you never started, turned back, or stopped AND you’ll achieve the opportunity that “compelled and pulled [you] onward.”
Companies face the same decision moment with innovation. There’s a market downturn, geopolitical uncertainty, or a major global event, so executives shut down anything that’s not mission-critical while they wait out the uncertainty. A new leader takes the helm and wants to put her mark on the organization, so she rejects the old strategies and approaches and institutes her own, ignoring the counsel of others in the organization. A new competitor suddenly finds itself embroiled in controversy or bankruptcy, and executives chuckle and shake their heads because they knew all along that the only way that works is the old way.
What do you choose?
Do you start because you see the opportunity to do better or because you’re afraid of losing out?
When you face the inevitable challenge, do you turn back to “how we’ve always done things,” take up residence where you are because it’s good enough, or do you bravely persevere?
Most importantly, when you face the challenge, do you take a break, talk and listen to the people around you, and have some tea and popcorn before you make your choice?
by Robyn Bolton | May 12, 2024 | Podcasts
