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?

How VC rate the start ups they back up?

From Gigaom

How do the Venture Capitalists rate the companies they back up?  Do they just read the business plan. Some as featured in this article has rather a unique way of selecting their winners.

l  Checking the cellphone;   how old is the cellphone;   how old or late they make their first call in the morning.   If they make early calls, then they call Eastern seaboard in USA and must be making a lot of State business;

2.  Stanford in resume  -  Many successful companies in Silicon Valley had Stanford diploma

3.  How street and academic smart are they.  The combination of both make for great entrepreneurs/business leaders.

4.  What do they read;  (yes book reports do count.  Special reports in the class)  They are indicative of their entrepreneurial knowledge

Secret algorithm of VC in selecting their winners by Remmy Oxley

Anonymous VC shares firm's secrets

---------- Forwarded message ----------
From: SmartBrief on Entrepreneurs <entrepreneurs@smartbrief.com>
Date: Wed, Dec 26, 2012 at 10:31 PM
Subject: Anonymous VC shares firm's secrets



SmartBrief on Entrepreneurs
December 26, 2012
http://r.smartbrief.com/resp/edoaCexkBiCfnjpbCidndhCicNyTzQ


                TODAY'S HEADLINES

BOLD VENTURES
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* How to be a better leader next year
FINANCE & GROWTH
* Anonymous VC shares firm's secrets
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* How to keep your energy up until the holidays wind down
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