But, some organizations like Apple, Amazon, and Starbucks defy the laws of
economic gravity. Dave Power, president of Power Strategy, shared
four best practices of the most successful innovation
growth companies with Harvard.
The best business models go through a predictable cycle of growth, often
depicted as an S-curve. Diminishing returns set in as the most attractive
customers are reached, price competition emerges, the product loses its luster,
customer support challenges emerge, and new skills are required.
apparent, it may be too late to design the next growth strategy. The innovation
window is when the first curve hits an inflection point. Steve Jobs understood
this when he returned to Apple. In 2002, he challenged his company to break out
of the mature computer industry where Apple had never had over 10 percent
market share. Eight years later, said Power, after introducing the iPod,
iPhone, and iPad, Apple Computer became Apple Inc.
Successful growth companies have a holistic understanding of their
customers' problems. Many are embracing tools to uncover opportunities to
create value. This insight is the foundation for their approach to product
innovation: rapid prototyping, design partnerships with lead users, and
pivoting to improve their business model.
Gerstner launched Operation Bear Hug to get the company back in touch with its customers.
So, IBM's top 50 executives had to visit five customers per week and deliver a
write-up to Gerstner.
Managers are trained to make choices, but they don't always have good
options. Innovation involves creating new options, which is where designers
excel. Apple's exceptional user experiences were largely the creation of Jonathan
Ive, a professional designer.
company strategists have abandoned Porter's Five Forces Analysis because it
assumes that markets have well-defined boundaries and competitors must fight
for market share.
CEO must make innovation a priority, or it won't happen. It requires a level of
risk-taking that's impossible without executive air cover. The best growth
companies create a culture of innovation.
lost its way, so he flew in every store manager from around the world to redesign
the caf' experience. Similarly, on a weekly basis, Google encourages its employees
to spend one day coming up with new ideas.