I recently read a report from the “Strategy & amp;” The 2014 Global Innovation 1000: Proven Paths to Innovation Sucess “Reading allows you to generate some interesting insights The first is that there is a direct relationship between.. R & amp;. D and business performance, such as revenue growth or profitability Spending too much money on R & amp;. D without a well-defined strategy will produce few results
I remembered an anthology phrase from Steve Jobs even in 1998, in an interview with Fortune:. “ Innovation has nothing to to with how many R & D dollars you have When Apple cam up with the Mac, IBM was spending at least 100 times more on R & amp; D. It’s not about money. I’s about the people you have, how you’re led, and how much you get it . “
Another thing that attracts attention is the strong growth P & amp;. D in computer industries like software and Internet Even in other industries with strong investment in research, such as the automotive industry, most research focuses on the development of software innovations
. A third and very important aspect is that the most innovative companies have in common, such as aligning innovation with the needs and desires of customers, maintaining adequate talent, strong alignment between research and business strategy, and good understanding of technology trends and market. Also, do not try to be good at everything. Focus on being innovative in a few sectors. Seems obvious, but no engagement between business and R & amp;. D is generated few tangible results,
In addition, in recent years with the Internet spreading and emponderando customers, ran out of time where companies defining what products and services would be offered and the market simply accepted them. Now, customers no longer want a figurative role, but they often influence and even create their products in sharing platforms like Kickstarter. In brief, with most spread 3D printers, this process will accelerate
The report from Strategy & amp.; defines three types of innovative companies. The “ Need Seekers “, like Apple, has as its highlight the perception of what your customers need or need, and generate innovations to meet latent demand, or even create demand. What is possible only by having a higher than average of current and future understanding of your customers desires. Another classification are the “ Market Readers ” like Samsung, which focus on incremental product innovations already proven in the market. The third is the “ Technology Drivers ” like Google, based on its strong technological and entrepreneurial culture to develop new products and services.
These three models are distinct, but allow to be extremely innovative. All three examples above are the Top 10 (“The 10 Most Innovative Companies) list included in the report. It’s worth reading it.
It is clear that technology, like software, is essential as innovative strength. Therefore the areas of IT firms have an important role to play. The question is whether we will take advantage of opportunities or will remain, like many on the sidelines of innovation, focusing their efforts solely on operational efficiency in day to day business.
What should they do then? Encourage your organization’s favorite question of children is “why?”. This question is a curiosity to know the “reason for being” of each new object, behavior or situation, discover the essence of things, what really matters. Unfortunately, in recent decades, and in most companies, IT was focused on making the best and quickest things yes, but the same things. The “why” was exchanged for “like”. A “how to” faster and cheaper, which trm operational efficiency as the epicenter of the rationale of IT.
The evolution of computing technology is fantastic. The growth of computing capacity is logarithmic (Moore’s law), but despite this growth prices do not follow this curve, however. Thus, as the computational power increases, prices decrease and its spread widens.
It is estimated that in 2008 the world added about 5 exaflops (10 to 18 floating point instructions per second ) computational capacity at a cost of 800 billion dollars. Were added in 2012 exaflops 20 at a cost of less than $ 1 trillion this year and 2014, over 40 exaflops approximately the same value of 2012. 20 years ago only 3% of the population had mobile phones and 1% accessed the Internet. Today, about 70% of people in the world have cell phones (about 2 billion are smartphones) and approximately half accesses the Internet.
What does this mean? That technology is increasingly pervasive, doing business and being part of the core of innovation. Implies that executives (C-level) have today have a clear understanding of the potential of technology and its impact on the future of their organizations. Technology and innovation can not be relegated to research centers and computing is no longer the monopoly of the IT industry.
The innovative use of IT can create new business models. For example, the autonomous cars will change the automotive industry. The model of having or owning a vehicle will probably be sharing the vehicle. And current industry model will become the manufacturer of the personal mobility services) companies vehicles. Will also affect the insurance industry for automobiles. Will be required to sell insurance for a vehicle that will not bump and if it is stolen and indicate where if autobloqueará?
Another example is the hotel industry. The model proposed by Airbnb puts in check legislation that created decades of distinguished individuals companies (the laws for businesses are different laws for people) and only these were considered official and legal.
The model of sharing the so-called “ sharing economy “, can enable anyone to become a small entrepreneur. And the official validation will not be the traditional way, by regulation by government agencies but by social reputation. To read a little about “ sharing economy ‘to access this article from Fast Company:. Http://www.fastcompany.com/1747551/sharing-economy
Well, if we compare Airbnb with a large hotel chain, Accor as we see that, despite having 3.6 thousand hotels and more than 470 thousand rooms has a market value of $ 10.3 billion. Airbnb has a single room anyway, never bought a bag of cement and is a software company. But it has 800 000 accommodation options and has market value estimated at $ 13 billion. What she’s different? Information and software. The information is worth as much as much money as a package delivered by a logistics company and in the case of the hotel industry, both as a quarter or more …
Faced with this scenario have to reinvent IT. Also make your own “whys”. Does the traditional model to develop and deliver systems, batch, suits the speed of the new times
This article in Forbes, “ The Future Workplace is now: how Etsy makes 30 innovations per day “, shows that it is possible to rethink the mental model which we have become accustomed in IT. Enjoy and read “ Why software is eating the world “. And do your “why?”. Otherwise someone might think that there is more to why the current IT …
(*) Cezar Taurion is CEO Litteris and participated in the first week of November the panel “Technology in Service Research and Development “, the 4th edition of the Brazilian Innovation Cycle Seminar, sponsored by the Brazilian Magazine
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