Innovation – The introduction of something new and different.
The innovation ecosystem
One pundit says that there are 4 major components to an innovation ecosystem:
Product, Process, Organization and Market. This may not be THE answer, but it is something people can work with.
I discussed the Market last week, this week I will cover the rest.
If you manufacture automobiles, your product options are limited. Today, they need 4 wheels and their objective is to move people.
If you manufacture high tech gadgets that provide one to one, one to many or many
to one communications there are many options. We have all seen smart phones and tablets, what is next? These companies have a lot more room for innovation.
If a company really wants to be innovative, their company organization must
embrace innovation as an objective. They might want to put in place some kind of reward for those innovative ideas. They will want to come up with a process that condones and rewards innovation. I am not sure whether Apple has a formal process in place, but I am told that they do have a culture that rewards innovation.
What is in it for innovative companies?
Apple’s reward is that the public perceives their products as innovative and cool. This allows them to charge a premium. Their iPhones and iPads are generally the most expensive option available to the consumer.
The Take Away…
If your market provides you with the opportunity for innovation, it would be to your advantage to put in place a process and an organization that promotes innovation. Maybe your company can come up with the next iPhone and charge a premium.