For low performers, only 26
percent of turnover comes from new products and services."
Most of the respondents attributed the need to innovate to increasing
pressures to brand and differentiate exerted by the advent of
e-business and globalization. Yet a full three quarters admitted to
being entirely unprepared for the new challenges.
Two good places to study routine innovation are the design studio and
the financial markets.
Tom Kelly, brother of founder David Kelly, studies, in "The Art of
Innovation", the history of some of the greater inventions to have been
incubated in IDEO, a prominent California-based design firm dubbed
"Innovation U." by Fortune Magazine. These include the computer mouse,
the instant camera, and the PDA. The secret of success seems to consist
of keenly observing what people miss most when they work and play.
Robert Morris, an Amazon reviewer, sums up IDEO's creative process:
- Understand the market, the client, the technology, and the perceived
constraints on the given problem;
- Observe real people in real-life situations;
- Literally visualize new-to-the- world concepts AND the customers who
will use them;
- Evaluate and refine the prototypes in a series of quick iterations;
- And finally, implement the new concept for commercialization.
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