Showing posts with label brand. Show all posts
Showing posts with label brand. Show all posts

Tuesday, January 1, 2013

Innovation straitjacket - how your innovation efforts are stymied?

From HBR

The straitjacket was invented in 18th century in France for mental disorder patients to prevent them from hurting themselves or others.  However, in a way or another, companies create, and this comes from the top create straitjackets vs innovation. It is functional though because it promotes order and stability.  Some of the straitjacket to innovation.

1.  Constrained by current capabilities  -- E.g.  a project/product cant be done because it is beyond core competency or capability. 

Remember Howard Stevenson of Harvard who defined entrepreneurship as "pursuit of opportunities without regards to resources currently controlled"

2. Fear of cannibalization - will the new offering eat into the current sales?

3.  Dread of dilution -  lower over all margin and ROI.  New product marketing and low volume eat into over all profits.

4. Brand  -  brand extension is bad (Al Reis and Jack Trout).  We cant depart from the brand. 

5.  Channel trap -  we try to sell new products through same channel and we have disappointments.

So it is better to leave innovation to a separate unit.

Straitjackets to innovation;  how can you innovate if you fear to innovate?