The web is exploding with innovation and businesses are racing to define ways to monetize the new markets created by innovation. However chasing the innovations doesn't always equate to capturing the value chain and creating new revenue streams.
Innosight writes: "Twenty-five percent of all new products that established companies introduce in their markets succeed. Seventy-five percent fail. Ten percent of companies can maintain a level of growth which satisfies their shareholders over the long term. Ninety percent cannot."
"Most of those companies seem to be doing the right things â€" listening to their best customers, keeping a close eye on competitors, and investing heavily in technological advancements. Long-term success requires more. It requires that companies develop strategies around disruptive innovation."
"Companies that unleash the power of disruptive innovation can create booming growth businesses, but what exactly is "disruptive innovation"?
"The disruptive innovation model explains how companies can create new growth by delivering relatively simple, convenient, low-cost innovations to consumers who are overshot by existing offerings or who are locked out of a market due to a lack of skills, wealth, access or time. These consumers are delighted with "good enough" products that enable them to solve an important problem they couldn't adequately solve before, at a price point that is palatable." Get your PDF for more info on Disruptive Innovation here
Why Some Can and Some Can't
It is safe to say that today's web is disruptive but turning disruption into revenue takes more than innovation. Most of today's disruptive technologies are being fueled by small organizations made up of youthful minds and the culture of these organizations is not conducive to historical "corporate cultures". The "disruptive" organization is a social organization whose creativity facilitates solutions and capabilities never before imagined and fueled by the social web. What makes Facebook grow? The independent application developers? The users or the very "social utility" created by collective culture of the Facebook Economy? None of these dynamics are traditional to the typical corporate mindset.
We are witnessing the impact of a Social Era on business design and management and the new business models are able to capture and quickly turn innovation into revenue. The new model is one of "Socialutions" and it is in of itself a "disruptive innovation" that changes the way businesses are run and innovation is captured.
Consider the BW article by Ana Nance/Redux: How Google Fuels Its Idea Factory: CEO Eric Schmidt describes the simple principles driving the company's steady stream of innovations
"Can other companies emulate Google's famous model of letting engineers spend about 20% of their time on projects outside their main job? "
"The story of innovation has not changed. It has always been a small team of people who have a new idea, typically not understood by people around them and their executives. [This is] a systematic way of making sure a middle manager does not eliminate that innovation. If you're the employee and I'm the manager, and I sit down and say, "Our product's late, and you screwed up, and you gotta work on this really hard," you can legally say to me, "I will give you everything I've got, 80% of [my time]."
I"t means the managers can't screw around with the employees beyond some limit. I believe that this innovation escape-valve model is applicable to essentially every business that has technology as a component."
"Why aren't many other companies doing this, too? "
"I think it's cultural. You have to have the culture, and you have to get it right. "
Sounds like Google lives Socialutions
- The Definition of Socialutions is here
- The Philosophy of Socialutions is here
- The Six P's of Socialutions is here
How Disruptive and Innovative is it?
What say you?