But what exactly is innovation?
Although the subject 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 its:
- Customer experience
- Value capture
- Supply chain
BOTTOMLINE: Don't think of innovation as something that only people in R&D do. Take a look at Discipline V - Innovate Purposefully.