ÿþ<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <html> <head> <title>TruNorth Consulting - Innovation</title> <META HTTP-EQUIV=content-type CONTENT="text/html; charset=ISO-8859-1"> <META name="Description" content="TruNorth Consulting provides services that increase the success rate of software projects by unifying product teams around compelling, achievable strategy."> <META name="Keywords" content="products product strategy software project success product team strategic product team unique value proposition compelling achievable strategy distinct advantage unique advantage product roadmap Stewart Noyce Consulting"> <META name="Copyright" content="© Copyright 2007 TruNorth Consulting, All Rights Reserved"> <META name="Content-Language" content="EN"> <META name="Distribution" content="Global"> </head> <body bgcolor="FFFFFF"> <center> <table width="520 border="0"> <!-- logo --> <tr> <td> <img width="100" src="images/blankspace.gif" border="0"> </td> <td> <a href="index.html" title="TruNorth Consulting Home Page"><img width="200" src="images/tn200_tag.jpg" border="0"></a> </td> </tr> <!-- separator --> <tr> <td colspan="2"> <img height="2" width="520" src="images/green_spacer.gif" border="0"> </td> </tr> <tr> <td colspan="2"> <img height="8" width="520" src="images/blankspace.gif" border="0"> </td> </tr> <!-- main section --> <tr> <!-- navigation --> <td valign="top"> <table border="0"> <tr><td> <a href="services.htm" title="Strategic Product Team Services"><img height="20" width="100" src="images/services_blue.gif" border="0" name="services" onMouseOver="document.services.src='images/services_gray.gif'" onMouseOut="document.services.src='images/services_blue.gif'"</a> </td></tr> <tr><td> <a href="method.htm" title="How Things Get Done"><img height="20" width="100" src="images/method_blue.gif" border="0" name="method" onMouseOver="document.method.src='images/method_gray.gif'" onMouseOut="document.method.src='images/method_blue.gif'"</a> </td></tr> <tr><td> <a href="innovation.htm" title="Staying Current on Innovation"><img height="20" width="100" src="images/innovation_blue.gif" border="0" name="innovation" onMouseOver="document.innovation.src='images/innovation_gray.gif'" onMouseOut="document.innovation.src='images/innovation_blue.gif'"</a> </td></tr> <tr><td> <a href="about.htm" title="About Stewart Noyce, Principal"><img height="20" width="100" src="images/about_blue.gif" border="0" name="about" onMouseOver="document.about.src='images/about_gray.gif'" onMouseOut="document.about.src='images/about_blue.gif'"</a> </td></tr> <tr><td> <img height="50" width="100" src="images/blankspace.gif" border="0"> </tr></td> <tr><td width="100"> <font face=arial size=2 color=gray><i> Innovation is fresh thinking that benefits customers.</i><p> Dr. Richard Lyons, <br>UC Berkeley </td> <td> <img width="20" src="images/blankspace.gif" border="0"> </td> </tr> </table> </td> <!-- body --> <td width="420" valign="top"> <font face=arial size=3 color=black> <b>Thoughts on Innovation</b></font><br> <font face=arial size=2 color=black> <p> Every day, innovation happens. It's a major driver for increased productivity and possibly the best source for sustainable growth in interesting jobs that pay well. While introduction of market-changing technologies has slowed in recent years, <i>business model</i> innovation has accelerated, supported by technologies introduced in the last decades of the 20th century. <p><b>Creative Destruction</b> <p> The fundamental thesis was well described by Joseph Schumpeter in <i>Capitalism, Socialism and Democracy</i>, first published in 1942. Essentially, if you're not changing the game, the game is changing on you. For a good place to start, try the <a href="http://en.wikipedia.org/wiki/Creative_destruction" target="innovation_window" title="Wikipedia - Creative Destruction">Wikipedia entry</a> for creative destruction. <p><b>The HP Way</b> <p> Though a quick read, David Packard's autobiography is a necessary one as it outlines key principles followed by this very successful innovator. During the time HP followed these principles (Packard was nearby to remind people of them), the company became large and profitable through continuous innovation.<br> <a href="http://www.amazon.com/HP-Way-Hewlett-Built-Company/dp/0887308171" target="innovation_window" title="Buy the Book">Buy the Book</a><br> <a href="http://www.hpalumni.org/hp_way.htm" target="innovation_window" title="HP Alumni">HP Alumni</a><br> <p><b>Leadership Through Innovation</b> <p> At the <a href="http://www.haas.berkeley.edu" target="innovation_window" title="Leadership Through Innovation"> Haas School of Business</a>, innovation is the core value that helps it achieve the highest level of business school quality. As an example, Berkeley professors consistently produce insightful works on innovation such as <a href="http://www.haas.berkeley.edu/innovation/innovation6.html" target="innovation_window" title="Barry Staw and Jack Goncalo">Individualism-Collectivism and Group Creativity</a>, which highlights the need to "encourage independence and individual achievement to promote innovation." <p> <p><b>Business Spending on Innovation</b> <p> Existing companies are investing in innovation. The Global Innovation 1000 spent $407 billion in 2005 on R&D according to a recent<a href="http://www.strategy-business.com/resilience/rr00039" target="strategy_window" title="strategy+business article"> worldwide study</a> by Booz Allen Hamilton. Yet, less than 1 in 10 of these companies achieved returns greater than average in their respective industries. Those that succeeded were "masters of the innovation value chain," distinguished by their capabilities in product ideation, project selection, development or commercialization. <p> Emerging companies are being created through investment in innovation. Venture capital investors raised over $7.2 billion in Q2 2007, according to a <a href="http://www.nvca.org/pdf/Q207VCFundraisingfinal.pdf" target="nvca_window" title="NVCA press release"> press release</a> from the National Venture Capital Association (NVCA). Yet, venture capital rules of thumb say that of 10 investments only 1 or 2 will be successful enough to cover the losses (or break even) of the others. <p> <p><b>Innovation Means <i>Yes</i>, and <i>No</i></b> <p> <i>Yes</i> opens you up to new ideas, new situations, new discoveries, learning. Say <i>yes</i> to innovation. <i>No</i> keeps you comfortable, cautious, careful. Say <i>no</i> to reduce risk, removing chance of an unknown or unforeseen outcome. <i>No</i> limits choice, simplifies, and makes decisions easier.<p> But when you bring discipline to innovation, you have to know when to say <i>yes</i> and when to say <i>no</i>. Say <i>yes</i> to a really big market of potential customers. Say <i>no</i> to specific customer segments (for today) that you can't adequately satisfy with the product you can deliver in the time available. Then say <i>yes</i> to every possible means of best satisfying the one customer segment you want to serve. Think in gray and you will live to fight another day. <p> </td> </tr> <!-- end main section, begin footer --> <tr> <td colspan="2"> <img height="2" width="520" src="images/green_spacer.gif" border="0"> </td> </tr> <tr> <td> <img width="100" src="images/blankspace.gif" border="0"> </td> <td valign="top"> <font face=arial size=1 color=gray><b> TruNorth Consulting</b><br> PO Box 188, Amherst, NH 03031 | 510.917.1927 | noyce@trunorth.com <br> Copyright 2007 by TruNorth Consulting. All rights reserved worldwide. <p> <a href="mission.htm" title="Mission and Philosophy">mission</a> <a href="services.htm" title="Strategic Product Team Services">services</a> <a href="innovation.htm" title="Staying Current on Innovation">innovation</a> <a href="about.htm" title="About Stewart Noyce, Principal">about</a> </td> </tr> </table> </center> </body> </html>