Doing things not done by others

A key innovation characteristic is doing things not done by others. The first mover advantage in innovation is the key to high profits. Two companies, which introduced creativity programs, United Technology and Federal Express, realized a high return on investment (ROI) from their creativity programs. Federal Express achieved a factor of two ROI, or 200%. The ROI for United Technology was even higher, a factor of six.

Replicating best practices

Copying the best practices from other players in the field can improve efficiency. Replicating the ideas that work across the organization, can save time and other resources. Paying attention to the mishaps of other players and avoiding what does not work for them, is also usable information.

Improve existing tasks

In order to be innovative, one needs to ensure that all existing tasks are done in the most optimal way. Routine matters are often dealt with automatically and inefficiency often creeps in, eating into the profitability of the organization. The techniques of innovation see existing tasks as a vast area, with great potential for improvement. The Japanese are always looking for better ways of doing anything. They say in effect, “This is being done very well. Let us study how to do it better.” This is what drives them to amaze the world, incessantly, with their miraculous creations. While it allows the status quo to remain, they are constantly looking for ways to do existing things more efficiently. A well-known manufacturer of travel luggage in India was deeply concerned about the high cost of transporting bags. During a brainstorming session, one of the members asked “Why do you transport air? All the bags are just full of air.” In effect, a nesting system was created, where one bag sat snugly inside a larger bag. The reduction in logistics costs led to the company buying up its nearest rival and enjoying a virtual monopoly for many years.

Doing things right

Mistakes can be expensive. The cost of rejection is a major source of concern in manufacturing. Doing things right is essential before companies can think of doing new things. Doing things right happens through: • Training • Retraining • Building-in quality consciousness • Reward and feedback systems • Process improvement • Communicating and affirming a culture of excellence • Building teams that co-operate rather than compete