Institutionalizing innovation: Key activities for market leadership

What distinguishes outstanding innovators from others: They understand that consistent innovation is the key to a company's competitive survival. So they are constantly looking for ways to change every aspect of their business - not just marketing - to serve customers better. To generate and sustain innovation all across the business, they consistently focus on these five keys: - - Creating a corporate work environment that values competitive performance above everything else. - - Structuring the organization to permit innovative ideas to rise above the demands of running the business. - - Clearly defining a strategic direction that lets the company channel its innovative efforts in ways that will pay off in their particular marketplace. - - Knowing where to look for good ideas and how to leverage them once they're found. - - Going after good ideas at full speed and marshalling the resources needed to ensure lasting success.I believe the following five steps will make your company more dynamic and innovative: - - Create a mind set that puts constant pressure on the organization to beat your specific competitors through innovation. - - Structure your organization to promote innovation instead of thwarting it as most do. - - Develop a realistic strategic focus to channel people's innovative efforts. - - Know where to look for innovative edges in your particular business. - - Throw the book at a few good ideas instead of spreading your resources around like butter on bread.Sounds simple because, of course, it is. But: it is a survival issue for most large corporations: - - Who are being "niched to death" by smaller competitors, and - - Outfoxed by global competitors who have taught themselves how to manage innovation more effectively.