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Mistaken Beliefs About Innovation - London Business School BSR

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Five mistaken beliefs business leaders have about innovation.

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  • DOWNLOAD FULL eBOOK INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc eBook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, CookeBOOK Crime, eeBOOK Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
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  • These points are all sound but also somewhat obvious, nonetheless it's important that they get reiterated from time to time.

    - Matthew Griffin
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  • I can't agree with mistake 5... People usually use Ford's statement in the wrong way. First of all, there are no markets that do not exist yet. If Mark decided to build Facebook, there was already the 'square concept', a place where people gather to talk to each other (and gossip). He just gave the square a gigantic scale.

    For big companies, it's all about scale and different business models applied to things that people already do, or to improve things that already exist (maybe two os these things combined).

    Second, yes, you should ask your customers what they want, but not as an interviewer, but as a researcher. You can't consider literally what people say (or make quantitative assumptions), but you must interpret what's behind those answers. When Ford heard 'fast horses', he built something that people could use to get faster from point A to point B, he did not try to genetic engineer a faster animal.
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  • Valid commentary on the attitudes of 'the suits' to fresh ideas, in established entities; that's precisely the reason why INNOVATION is truly the domain of the true entrepreneurs - we who envision the huge market potential in a product/service yet to be developed, launched and market tested.
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Mistaken Beliefs About Innovation - London Business School BSR

  1. 1. Five Mistaken Beliefs Business Leaders Have About Innovation© Copyright 2012 London Business School
  2. 2. Innovation has been looked at from every conceivable angle, but we still repeat the same mistakes, laments Freek Vermeulen.BUSINESS STRATEGY REVIEW 1
  3. 3. Mistake 1: Believing the Numbers One common mistake is to insist on “seeing the numbers” too much too soon. “What is the size of themarket?”, “what is the Net Present Value calculation?”, “payback time?”, and so on. BUSINESS STRATEGY REVIEW 2
  4. 4. If a CEO insists on hard numbers before the project is even started, it will by sheer definition kill off any truly innovative ones,simply because you cannot compute the size of a market that does not exist yet. BUSINESS STRATEGY REVIEW 3
  5. 5. Mistake 2: Believing Success Has Been AttainedWhen an organisation becomes very good at something, top ofits industry, it usually starts to focus on the thing that made its success, crowding out other options and points of view. BUSINESS STRATEGY REVIEW 4
  6. 6. Mistake 3: Believing They Know the Competition If I ask a CEO “who is your main competitor?” they always reply with the company that is most like them. When it comes to innovation, this is slightly delusional. The company that is most like you is really the least important competitor, simply because they are in the same boat as you are.BUSINESS STRATEGY REVIEW 5
  7. 7. The most threatening competition often comes from a completely different angle: an adjacent industry,innovative start-up or substitute. This is a phenomenon for all times: Sailing ship companies suffered from the steam engine; Radial tire champion Firestone was brought to its knees by the introduction of bias tires; Newspapers are being squeezed by the internet. BUSINESS STRATEGY REVIEW 6
  8. 8. Mistake 4: Believing That Because Everybody HadAlways Done It This Way, it isthe Best Way of Doing Things“Everybody does it this way, and everybody has alwaysbeen doing it this way; if it wasn’t the best way of doing things, I am sure it would have disappeared by now.”BUSINESS STRATEGY REVIEW 7
  9. 9. In many businesses, practices emerged with good reason, butonce the circumstances changed, firms carried on using them for no reason whatsoever. Did newspapers have to be printed for so long on ridiculously large (and expensive) sheets of paper? Could low-cost airlines not have worked many yearsearlier? Are buyback guarantees in book publishing (set up in the Great Depression) really still needed?That everybody does it this way is no reason not to challenge it.The greatest innovations often come from challenging industry convention. BUSINESS STRATEGY REVIEW 8
  10. 10. Mistake 5: Believing the Customer The final error CEOs often make when it comes to innovation is toask their customers for their opinion. There are two problems withthis approach. Firstly, these people are already your customer and secondly, even when a company is asking potential customers, it is tricky. Consumer research is often useful but not for truly innovative ideas and markets that do not exist yet. BUSINESS STRATEGY REVIEW 9
  11. 11. As Farooq Chaudhry once put it to me: “Customers? Forget about them.” If you want to be really innovative, you have to be leading the customers; not be led by them.BUSINESS STRATEGY REVIEW 10
  12. 12. Freek Vermeulen is Associate Professor of Strategyand Entrepreneurship at London Business School.He is the author of Business Exposed (FT PrenticeHall, 2010).This report was part of Business Strategy Review,Volume 22 Issue 4 - 2011Visit the website www.london.edu/bsrBUSINESS STRATEGY REVIEW 11

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