Making Innovation Work

About the Authors

Tony Davila is a distinguished faculty member of Stanford's Graduate School of Business. Building on his doctoral work at Harvard Business School, he collaborates with both large industrial companies and Silicon Valley startups, bringing his wealth of knowledge and practical experience to the forefront of innovation management.

Marc J. Epstein, an esteemed scholar, has been a visiting professor and Hansjoerg Wyss visiting scholar at Harvard Business School and a distinguished research professor at Rice University's Jones Graduate School of Management. His extensive research and academic contributions provide a solid foundation for understanding the intricacies of innovation in business.

Robert Shelton is a director at PRTM Management Consultants. With a client list that reads like a "who's who" of innovative Fortune 500 companies, his expertise in driving innovation and practical implementation strategies makes him a key contributor to this comprehensive guide on making innovation work.

Main Idea

The essence of "Making Innovation Work" lies in the belief that consistent, profitable innovation is not a matter of chance but a result of disciplined management processes. The book provides a detailed, start-to-finish process for fostering growth through innovation, drawing on the authors' extensive consulting experience and a thorough review of innovation research. The techniques shared in this book have been tested and proven at leading companies such as Apple, GE, and Toyota, demonstrating what works, what doesn't, and how to use management tools to maximize the value of innovation investments. By defining effective strategies and organizational structures, managing innovation successfully, motivating teams, and infusing metrics throughout every phase of the innovation process, this book demystifies the path to profitable innovation.

Table of Contents

• Introduction
• Driving Success: How You Innovate Determines What You Innovate
• Innovation at Apple
• How to Make Innovation Work
• The Rules of Innovation
• Mapping Innovation: What Is Innovation and How Do You Leverage It?
• Combine Technology Change and Business Model Change
• Three Types of Innovation
• Innovation Model and the Innovation Rules
• Choosing Your Destiny: How to Design a Winning Innovation Strategy
• Play-to-Win or Play-Not-to-Lose Strategies
• Factors to Consider
• Organizing for Innovation: How to Structure a Company for Innovation
• Balancing Creativity and Value Creation
• Outsourcing Innovation
• Management Systems: Designing the Process of Innovation
• Illuminating the Pathway: How to Measure Innovation
• Rewarding Innovation: How to Design Incentives to Support Innovation
• Learning Innovation: How Do Organizations Become Better at Innovating?
• Cultivating Innovation: How to Design a Winning Culture
• Applying the Innovation Rules to Your Organization

Introduction

In today's fast-paced business environment, the ability to innovate consistently is crucial for survival and success. Innovation is often seen as a mysterious, unpredictable process, but the truth is that it can be managed, measured, and executed effectively with the right tools and strategies. The common wisdom about innovation management is often flawed or misunderstood, leading to inconsistent results. As Tony Davila, Marc J. Epstein, and Robert Shelton point out, "Much that is held as common wisdom regarding how successful innovation is managed is wrong." They emphasize that innovation, like any other business function, requires specific tools, rules, and discipline.

Driving Success: How You Innovate Determines What You Innovate

Innovation is not just about coming up with new ideas; it's about implementing those ideas effectively to drive growth and success. The way an organization innovates determines the quality and impact of its innovations. Companies like Apple, Toyota, and GE have shown that strategic innovation can redefine industries and set new standards. For instance, Apple's launch of iTunes and the iPod wasn't just about new technology; it was a strategic move that combined technological innovation with a new business model, creating a powerful synergy that reshaped the music industry.

Successful innovation requires a clear strategy, strong leadership, and the right organizational structure. The authors argue that innovation must be integrated into the company's basic business mentality. It's not a "nice-to-have" element; it's a crucial part of the business that needs to be managed carefully. By exerting strong leadership on the innovation strategy and portfolio decisions, companies can align their innovation efforts with their overall business goals, ensuring that they support and enhance the company's strategic direction.

The Rules of Innovation

The key to successful innovation lies in understanding and applying a set of fundamental rules. The authors outline seven rules that are essential for driving innovation effectively: