If you ask one hundred people to define innovation, you’re likely to get one hundred different answers. The simplest definition is one the late Clay Christensen used consistently: “Something new that adds value”. This is my go-to definition.
Short, sweet, to the point.
Let’s unpack it.
Something new:
Any product, process or service that is different in a fundamental way. Differentiation may come in incremental improvements, new offerings, or new technologies. Many people get this half of the statement confused with innovation. The “Something new” part is only invention, not innovation.
Adds Value:
Adding value to an invention is what turns it into an innovation. Who is the beneficiary of the value? Both the customer and the company. Value is achieved by a sustainable business model. If a solution solves a customer problem perfectly, yet is cost prohibitive to supply, the value is one-sided and not sustainable. As well, if a solution provides the company with a perfect profit model, yet does not satisfy a customer need, then it will not be adopted by the market. When we talk about something different, to provide value, the difference must be great enough that a potential user perceives the new solution as a means of achieving progress unavailable before.
Rewarding Innovation
If you have a solution looking for a problem, congratulations, you have an invention. Inventions, especially those sitting on the shelf, are usually the outcome of solution-first innovation as opposed to problem-first innovation. If you reward your people for granted patents, you may be rewarding the wrong behavior. Many companies have an “Inventor’s Hall of Fame” for those with the most patents. What if you replaced that with an “Innovator’s Hall of Fame”, rewarding those whose solutions had the most impact on the bottom line?
If your inventions are covered in dust, it’s time to get outside the building and talk to customers.