Council Post: Back To Basics: What Is Innovation?

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In a company I previously worked at, one of my bosses was a big guy with an even bigger personality. He shared his opinions loudly and broadly, and one of his opinions was that we needed to stop using the word “breakthrough.”

“If I have to hear one more time about some new ‘breakthrough’ product, I will throw you out of this office myself!” he would bellow.

Years later, I can’t help but wonder what he would think of the word “innovation.”

In May 2012, the Wall Street Journal published an article (paywall) positing that, as the word “innovation” increased in usage, it decreased in meaning. The accompanying infographic said it all:

That may seem like a lot, but remember, that data is nearly eight years old!

The desire for and investment in innovation in all its forms — accelerators, incubators, startup/venture studios, corporate venture capital teams — has only grown since 2012.

While this may seem like a good thing, the fact that the success rate of innovations hasn’t changed means that most people react to “innovation” the same way my boss reacted to “breakthrough”; if you bring it up, they throw you out.

To avoid getting thrown out of offices, one of the first things I do with my clients when we begin working to build innovation into an enduring capability within their companies is to reestablish what innovation is and is not.

Innovation IS something different that creates value.

When people hear the term “innovation,” they tend to think of new-to-the-world gadgets that fundamentally change how we live our lives. Yes, but it’s many other things, too. Let’s break down the definition:

Innovation IS NOT a one-size-fits-all term.

Think of it this way: Both a Kia and a Maserati are automobiles, but you wouldn’t expect to pay Kia’s price tag and get a Maserati (and vice versa). Similarly, both a convertible and a pickup truck are automobiles, but you wouldn’t use your convertible to carry building equipment to a construction site.

With a definition as broad as the one above, it’s possible for “innovation” to become even more meaningless as it gets applied to more things. That’s why, like automobiles, it’s important to identify different types of innovation.

There’s no universally accepted set of innovation types, which is why I recommend that companies consider defining at least three types that reflect their business and forward-looking strategies.

One of the most common sets of innovation categories is based on the degree of change required for implementation:

There are many things that need to be done to shift innovation from buzzword to business capability. Defining innovation (and at least three different types) is only the first step in moving from innovation theory and theater to building innovation into a true capability that drives sustainable growth.

Or, as I would tell my old boss, “It’s the first step. But it’s a breakthrough one.”