Friday, August 11, 2006

Expanding the Innovation Horizon: Global CEO Study 2006

It's IBM's turn to release a survey of CEO's perspectives on innovation - Expanding the Innovation Horizon: Global CEO Study 2006

A key conclusion is:
Business model innovation is becoming the new strategic differentiator. "The business model we choose will determine the success or failure of our strategy," one study participant said. In contrast to the findings of the 2004 survey, innovation in the enterprise's business model garnered nearly as much attention as innovation in a company's core processes and functions.
In Clayton Christensen's parlance, it's discontinuous innovations that need to be commercialized in new business models in order to address the needs of new markets of customers.

After a couple decades of programs like Six Sigma to drive down costs and improve quality, which primarily improved existing products sold to existing customers, American companies are finding they've squeezed most of the juice from that fruit. Now it's time to tackle the really difficult job of creating new markets.

Innovation management is where quality management was about twenty years ago.

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