A Winning Innovation Combination
Strong business leaders and strong business models. According to some writers this may be a winning innovation combination.
A book released this summer called The Innovator’s DNA was developed with the goal understanding as much about innovative leaders as possible, including the moment they came up with the creative ideas that launched new products or businesses. From those interviews, five skills were identified that distinguish innovative entrepreneurs and executives from ordinary managers.
These five effective habits demonstrate that one’s ability to generate innovative ideas is not merely a function of the mind, but also a function of behaviors.
Associating – being able to connect the dots between disparate phenomena
Questioning – being able to question the unquestionable
Observing – and taking pleasure in the unexpected
Experimenting – an ability to try out new things
Networking – being able to embrace people from disparate backgrounds
An article from Innovation Tools provides these leaders tips for identifying a strong portfolio of business models. A strong portfolio ensures a business has alternatives when mature businesses are being commoditized into decline.
1. Research shows market selection is more important to growth than share gain within served markets. Business models should be focused on attractive customer segments. Innovative organizations identify fast-growth pockets from within existing markets and pursue their share of those segments.
2. In a strong portfolio, business models are synergistic as they leverage solution, process and resource platforms. It is through leveraging these platforms that each business gains distinctive advantages and efficiencies not available to competitors.
3. The portfolio should be diversified, with a mix of mature, growing, and emerging business models. Mature businesses generate most of today’s profits and cash. If they can’t be re-imagined through business model innovation, manage them for cash, or exit that segment.
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