Steve Jobs (born in 1955) has justifiably earned a reputation for innovation. But what makes him truly innovative is not that he is the first person to come up with ideas, but rather that he is the first one to implement them.
Thus, he was not the first person to think of:
Developing an affordable computer for the average home.
Developing a truly user-friendly computer with an intuitive, mouse-driven user interface.
Making the first fully digitally animated movie and turning it into a worldwide hit.
Developing the first computer whose design would set new standards.
Developing a new generation of music players (whose worldwide success would dwarf that of the Walkman).
Developing a cell phone that would epitomize a new generation of smartphones.
Establishing a totally new global market with digital lifestyle products (in his case the iPod, iTunes, and the iPhone).
Instead, his innovation lies in spotting the true potential of great ideas and implementing them to unparalleled effect.
The advent of the Apple 1, Apple 2, Apple Macintosh, of the movies Toy Story and A Bug’s Life, of the iMac, iPod, iTunes, iPhone, and iPad were all milestones in effective implementation, driven by a relentless will to innovate. In short, there is a clear answer to the question about what makes top people really special: they get the right things done. So implementation is vital. After all, it is relatively easy to come up with ideas, but implementing them is another matter entirely.
Innovation is the one core skill that any organization needs, be it a government organization, a nongovernment organization (NGO), a business, or a nonprofit organization. But before an organization can develop this core skill, it must first properly understand what innovation is. There is one unequivocal and uncompromising benchmark for doing this—namely the extent to which benefits are generated for customers so that the market is satisfied. Consequently innovation cannot be evaluated from within an organization, but depends solely on what customers want and whether they will be prepared to pay for it. Neither the technological nor the scientific value of innovation is decisive; nor is its originality, attractiveness, or quality, or even the top management’s opinion of it. The decisive thing is the customers’ verdict in the marketplace. That is the acid test.
Well-managed organizations systematically measure their innovation performance. Yet the starting point here should not be performance, but observation of the market. Consequently, the management team should ask itself:
Which innovations have occurred in our organization’s market during the period under consideration?
Who brought these innovations to market?
Which innovations proved particularly successful?
Which innovations in other sectors could influence our organization’s market?
Which consequences does our organization need to draw in light of all the innovations cited above?
A profound understanding of the respective business environment is the basis on which to discuss innovations and then move on to question your organization’s own achievements by asking the following:
How many—and which—innovations have we successfully introduced?
Are these innovations strengthening our market standing? If so, where? In existing markets where we are already established, or in major growth markets that may represent our future?
What proportion of our sales do we earn from which products?
How long have these products been available?
Is the overall result a healthy, sustainable structure?
In addition to considering performance, however, some discussion should also focus on nonperformance, missed opportunities, failures, errors, things that were overlooked, or developments that prompted too late a response (if at all). The question to ask then is: why did this happen to us?
Strictly speaking, the answers to these questions constitute a judgment (rather than a measurement) of innovation performance. All the same, it is such assessments that form the basis of sound decision making. Indeed, managers would be making a big mistake if they relied solely on what is measurable and objectively quantifiable. Anyone who tackles the subject of innovation as sketched out above will initially have more questions than answers, but at least they are essential questions and the right kind to ask.
Keep precise track of innovations in your market.
Which innovations that were developed and then introduced by your organization actually generated benefits for your customers and which were merely new products or services? What needs to be done to establish closer contact with your target group?
Does your organization ask the right questions about innovation at regular, scheduled intervals?
What can you and your colleagues do to boost your organization’s power to innovate?