Resolving Innovation Strategy
Technology is one of the most important resources we have as a civilization. It’s both the threat and the promise. Huge opportunities, and no lack of disruptive innovation.
But, Should we continue to reinvent ourselves around disruptive innovation, or should we transition our focus to capitalize on continuous innovation?
For the first phase of innovation, everybody wants it – it’s an investment; we’re in the future; we’ve got plenty of cash; this is good – and everybody knows where they want to get: to the future.
Do the “Rethinking What is Core exercise.
Core is whatever gives you the competitive advantage that allows the customer to pick your product and not the other guy’s. Price, technology innovation, styling, channel, service: whatever it is, that’s core. Everything else is context.
As markets mature, whatever used to be core becomes context. You have to extract resources out of these things since they’re no longer giving you competitive advantage. The objective is to extract resources from context in order to repurpose them from core. The game is to identify the processes that don’t differentiate, find ways to get out of them, and use the resources for the next level.
Understand that your advantage is innovation, but don’t get locked into a particular style of innovation as the only possible response, and particularly don’t become petulant if that style of innovation is not in vogue at the time you want it to be. There is no excuse to be petulant as an entrepreneur. It’s just not an adjective you’re allowed to use.
(Source: AlwaysOn here.)