March 2001

 

Innovation Tips

Éideas to help you foster collaborative innovation

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Innovation in the Age of Discontinuity

 

We live in an age of unprecedented change. Many of us are hoping that it will settle out soon, that all of this disruptive change will slow down so that life can get back to normal. It wonÕt. The rapidity of change will accelerate, causing emotional, social and economic disruption across all levels of society. As Dorothy noted, we are simply not in Kansas any more.

 

Some have referred to this period of rampant change as the age of ÒdiscontinuityÓÑthe abrupt passing of one way and the sudden commencement of another. Every industry, every business, every institution, every way of life will be affected by these unsettling discontinuities. We will no longer be able to rely on the past to help us anticipate the future; rather, we must now use new ways of understanding what is ahead of us, and we must also develop new ways to respond.

 

Purposeful innovation in this new age will be essential for the well being of every business, organization and institution. Knowing how and when to effectively innovate will be essential to managing the change occurring all around us.

 

Where do we begin to understand how and where to innovate? Knowing what questions to ask is essential, and the questions are different depending on the type of innovation being sought.

 

Continuous Improvement

The simplest, most conventional form of innovation is what the Japanese call KaizenÑcontinuous improvement. It is the easiest to understand and the easiest to access. Continuous improvement simply means adding value to existing products and services. Those improvements often occur in response to some basic questions: Where have we had an unexpected success or failure? What seems amiss or in need of fixing?  Where are the weak points in the flow of our work?

 

New Concept Innovation

More difficult to manage, though rich with opportunity, are Ònew conceptÓ innovations: fiber optic cable in lieu of copper wire, disposable diapers in lieu of cloth, aluminum cans in lieu of glass bottles, cash management accounts in lieu of savings accounts, credit cards in lieu of cash or check and solid state electronics in lieu of vacuum tubes.

 

New concept innovation can plague every organization at the top of its game, every organization that is enjoying market dominance, every organization that thinks it understands its customers. Powerful blue-chip companies have been brought to their knees by such innovations, not the least of which have been IBM, Xerox, Sears, and NCR.

 

To address new concept innovation, we must ask questions that require more complex answers. Where are the changes in market structure? What are the key changes in demographics? What new knowledge or technology is emerging?

 

Learning to live with the seeming chaos of accelerating change will try our patience, challenge our core values and stress the very fabric of our civilization. Yet in the chaos of such change, there is also possibility. With every advance in technology, every change in the workplace, every alteration of every process, there is abundant opportunity. Understanding which questions to ask to seize that opportunity will be essential in this Age of Discontinuity.

 

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