Mapping Innovation

Idiosyncratic Innovation

Every company handles innovation its own way. IBM conducts extensive fundamental research and is skilled at adapting its business model to changing market circumstances. Procter & Gamble teams up with external engineers and researchers to create must-have products consumers buy by the billions. Apple focuses on its customers and on delivering “insanely great” products and services. Google develops a steady stream of innovations through extensive experimentation.

Before figuring out how your firm should handle innovation, define what innovation is in your context. Scott Anthony, an expert on innovation, defines it as “something different that has a measurable impact.” Or, consider innovation as “a novel solution to an important problem.” Each company must determine what’s important to its mission and what’s not.

Your company wants to develop a singular “innovation path.” Determine whom you will work with on various innovations, how to coordinate those efforts and how to commercialize the results. No matter how your organization handles innovation activities, your CEO and senior executives must accept an unforgiving reality: Successful...