Open your mind to the idea of innovation
By Stefan Stern FT
The three most dangerous words in management? “Not invented here.” As Henry Chesbrough, executive director of the Center for Open Innovation at the University of California, Berkeley, has pointed out, senior management teams can fail to spot important innovations because the new business models do not easily fit in with the way things are being done now.
Researching the performance of Xerox, the copier and printer company, Prof Chesbrough found that, out of 35 projects that had been rejected as part of a review process, 10 had gone on to become highly successful businesses. Indeed, the combined value of these 10 new projects was twice that of Xerox itself. He calls these rejections a “false negative”: the innovations had looked bad, but that was because senior managers were unable to recognise their benefits.
Prof Chesbrough was one of the speakers at last week’s Financial Times innovation conference in London. The conference also heard from Brian Dunn, chief executive of Best Buy, the electrical goods retailer. He told a story of how his company had in the past 20 years brought in new ways of doing things again and again.
Whether it was abolishing commissions for sales staff, starting to sell on the Internet, or renewing the company's approach to the customer, or expanding abroad: each time, Best Buy’s leadership did not make the decisions easily. Each time, there were smart people at the top who resisted change, he said. Necessary innovations are hard to introduce when, as in Best Buy’s case, the business seems to be doing fine.
The headline of the article I have read is «Open your mind to the idea of innovation» is written by Stefan Stern for Financial Times. The author touches upon the problem of introducing new innovations in the business model. The purpose of the article is to give the reader some information about how companies oppose innovation. The article provides an example of two companies that opposed innovation. Senior managers at both companies are reluctant to accept the new. Senior managers at both companies are reluctant to accept the new, although innovations often improve the work of the company. I found the article rather interesting as because it is important to convey to future leaders how much innovation is important for the company. From my point of view, innovations contribute to the development of the company, increase its competitiveness in the market and work efficiency.
ОтветитьУдалитьThe headline of the article I have read is «Open your mind to the idea of innovation» is written by Stefan Stern for Financial Times. The author touches upon the problem of introducing new innovations in the business model. The purpose of the article is to give the reader some information about how companies oppose innovation. The article provides an example of two companies that opposed innovation. Senior managers at both companies are reluctant to accept the new. Senior managers at both companies are reluctant to accept the new, although innovations often improve the work of the company. I found the article rather interesting as because it is important to convey to future leaders how much innovation is important for the company. From my point of view, innovations contribute to the development of the company, increase its competitiveness in the market and work efficiency.
ОтветитьУдалитьThe headline of the article I have read is «Open your mind to the idea of innovation» is written by Stefan Stern for Financial Times. The author touches upon the problem of introducing new innovations in the business model. The purpose of the article is to give information about how companies oppose innovation.The article provides an example of two companies that opposed innovation.Managers of these companies are reluctant to accept new technological innovations, although they facilitate work and reduce costs.For me, the article was quite interesting, because it is important to convey to future leaders how important innovations are for the company.
ОтветитьУдалитьas for me, I believe that innovation helps to increase its competitiveness in the market, work efficiency and the development of all sectors of the organization