defining innovation. At
GEN3 Partners we define innovation
as a significant movement along the
main parameters of customer value.So, whether you are providing
products or services, you need to
define your customers value,
understand what they are going to buy
from you as well as what features of
the product or service they are willing
to pay for. In the end, it doesnt really
matter if it is a service or product
company. If they have focus, if they
have discipline, and if they have
support from internal leadership
they will see the results.
One of the reasons people have this
misconception of how companies
innovate products and services is
because we tend to think that product
companies are the ones with the big
R&Ds departments, filled with smart
people dedicated to coming up with
innovative new concepts and that
service companies simply dont have
it. Instead, we think service
companies only study consumers and
come up with simple solutions, which
is simply not the case when we think
of Starbucks or Southwest Airlines.
Companies today tend to treat
innovation as owned by R&D. As long
as we believe that innovation belongs
to a function or a single department,
this misconception will damage how
well companies innovate.
You can be innovative in a product and
service company as long as you define
the main parameters, and then the
process tools and discipline to really
improve along these parameters. In
addition, companies should forget
about finding the place for
innovation. Instead it should spread
across the organization. If companies,
whether they are service or product
oriented, follow these
recommendations, they will see results
faster.
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What is the best way to integrate the
product life cycle strategies and
innovation strategies?
Companies with Product Life cycle
Management (or PLM) have concerns
about the help from the right product
innovation. An innovation discipline,
such as GEN3 Partners delivers, can
help them choose the right strategy for
product improvement development in
relation to where on a product life cycle
a given product exists.
The best way to integrate is to
understand what each discipline,
product life management and product
innovation could bring to each other.
For example, part of GEN3 Partners'
innovation discipline is the ability to
predict future innovation of products
plus an understanding of what needs
to be done depending on where the
product is on a life stage.
In fact, there is not only a possibility to
integrate PLM and innovation strategy
but a need to do so. This is because
each of them is involved in something
new and powerful related to the other.
I believe it is possible to integrate
product life cycle strategy and
innovation strategy because both
approaches have a common currency
value over product. What I mean by
common currency is how to unite
things together so you bring them to
the same language. Companies
develop products and put them
through different stages of life cycle
because they want to try to improve
their value. The value of the product is
made out of what the product can do,
functionality or what it will cost us to
have it.
Product life cycle management
defines direction for product
development and a direction in which
a value of a product will increase.
Innovation strategy will help you to
choose the right way to increase this
value. So, while product life
management will help to define the
direction, innovation strategy will
help ensure you meet your goal.
One more thing to remember is that
very often people start thinking about
innovation, from the product life
management area, when it is time to
save the product. They look at it at the
very end or when product is already
matured. Companies shouldnot wait
for this, but instead join these two
approaches from the very beginning.
If you use innovation management to
minimize the product development
problems, then product life cycle
strategy will be more successful.
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Does benchmarking lead to innovation
or does it stifle innovation? After all, some
view benchmarking as simply sophisticated
copying and therefore the incentive to
innovate is abysmally low.
Benchmarking goes to the same issue
of perception that innovation is
something that comes from flashes of
inspiration, or that we need to take a
shower to have the light bulb above
our head to come on. It plays into the
notion that when you deal with
innovation you shouldnot deal with
something as boring as
benchmarking
But innovation is not a random burst of
inspiration. It should come from
discipline. And if you look at any
discipline, it starts at understanding
the competitive landscape.
Considering this, benchmarking is an
important and critical part of
innovation discipline.
