Radical innovation: making the right bets
Bessant, John; Möslein, Kathrin; Neyer, Anne-Katrin; et al.Piller, Frank; Stamm, Bettina von
Date: 2009
Publisher
Advanced Institute for Management Research
Abstract
Our research reveals that organisations, here in the UK and elsewhere, must face up
to the complex challenges associated with exploring and developing radical ideas and
innovations if they are to continue to be successful in the long term.
■ Discontinuous innovation – ‘doing something different’ innovation – is often the
driver of ...
Our research reveals that organisations, here in the UK and elsewhere, must face up
to the complex challenges associated with exploring and developing radical ideas and
innovations if they are to continue to be successful in the long term.
■ Discontinuous innovation – ‘doing something different’ innovation – is often the
driver of sustained competitive advantage and shareholder value creation. As such
the ability to support radical innovation is an essential organisational competence.
■ The decision-making process in which resources are allocated to innovation
projects is extremely challenging, as the degree of uncertainty involved means
that using conventional systems and processes often leads to radical ideas being
rejected.
■ The research identifies twelve excuses that organisations use to justify their
decision not to pursue radical innovation. Organisations must learn to recognise
when they are making these excuses and find other ways of evaluating how to
behave when faced with radical innovation.
■ The innovation selection environment that operates in organisations can be
described in terms of four zones. In two of those zones, new strategies are
required for innovation selection decision-making.
■ There are a number of promising strategies that can help organisations to back
an innovation winner. These include: building alternative visions; bridge-building
to/from outside the box; probe and learn method; using alternative evaluation and
measurement criteria; mobilising sponsorship and championship; using alternative
decision-making pathways; deploying alternative funding structures; using
alternative – dedicated/devolved/decentralised – implementation structures;
mobilising entrepreneurship inside and outside the firm.
■ Through a thorough understanding of the innovation selection process,
organisations can avoid the pitfalls that lead to abandoning potentially marketwinning
radical ideas. At the same time they can learn how to implement strategies
that nurture and develop that all-important discontinuous innovation.
Management
Faculty of Environment, Science and Economy
Item views 0
Full item downloads 0