Saturday Odd Bits Roundup: 3 On Innovation
by Miki SaxonInnovation is far more than the flavor du jour of the media world; it is the lifeblood of our planet. It is only through innovation that we will find the solutions to feed the hungry heal the sick and save the planet. And by “we” I mean the human race, not just Americans.
Today I have three fascinating articles on innovation that kick off a week of commentary on the subject.
Let’s start by looking at how Ratan Tata, Chariman of Tata Group, built a culture of innovation after India dropped its trade barriers. “… for his companies to survive and thrive in a global economy he had to make innovation a priority—and build it into the DNA of the Tata group so that every employee at every company might think and act like an innovator.” Notice it says ‘every employee‘, not just the stars, designers or engineers.
No matter the product or service, all companies are composed of two parts, one creative (informal) and the other operational (formal); this is also true for micropreneurs’ thinking even when they have no employees. Keeping the two functions equal so that one doesn’t dominate the other, whether in thought or resources, is a difficult balancing act—but one absolutely critical to innovation.
Last is the story of Symphony Services, an outsourced software developer who is taking the risky approach of outcome-based contracts. “Typically, clients pay Symphony a percentage of the contract upfront—the amount is negotiated based on their needs and circumstances—but withhold a percentage based on the outcome. This usually means delivering the promised product, in addition to other results such as improved efficiency, profits, and margins. As an incentive for the vendor to deliver the product on time, on target, with the promised effect, the partners might share the financial benefits, such as savings or profits, after the project is completed.” A gutsy, innovative approach, to say the least.
Be sure not to miss Monday’s post on IBM’s extreme innovation gamble.
Image credit: MykReeve on flickr
