But what exactly is innovation?
"Although the subject (or innovation) has risen to the top of the CEO agenda, many companies have a mistakenly narrow view of it. They might see innovation as synonymous with new product development or traditional research and development. But such myopia can lead to the systematic erosion of competitive advantage. As a result, companies in a given industry can come to resemble one another over time."
In actuality, business innovation is far broader in scope than product or technological innovation.
In fact, your company can innovate along any of 12 different dimensions with respect to your:
- Customer experience
- Value capture
- Supply chain
BOTTOMLINE: And you thought you could only innovate with regard to products and technology! As discussed in Six Disciplines for Excellence, Discipline V. Innovate Purposefully is not an isolated event, nor is it isolated to just products, R&D and new technologies. It's a organizational learning mindset that permeates the culture of an excellent company.