Why can't we seem to innovate?

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For the last decade I have been looking at innovation around the globe. I am seriously distressed about the total lack of innovation on a global scale. Less than 20 years ago we had think tanks such as BBN, Xerox PARC, Bell Labs, SRI and others, whose sole purpose was to bring thousands of brilliant engineers, mathematicians and computer scientists together and let them innovate. The atmosphere was completely uninhibited and collaborative across multiple disciplines.

Each company boasted thousands of the best and brightest minds and talent. Graduates from all over the world could not wait to be recruited by these companies and for several decades, they defined the edge of disruption. It was a thrill being at BBN in this period. Every day would challenge us, teach us and challenge us again.

Then, starting with the bursting of the dot-com bubble, everything changed. Many historic innovators stopped innovating. Companies spent money on research but not innovation (which is basically applied research). Some continued pushing the envelope (Apple, Google, Salesforce.com) because they understood instinctively that companies that want to remain great must continually reinvent themselves.  They can never come to rest or get too comfortable. They must engage in what is known as “creative destruction.”

Others just quit innovating. Hewlett-Packard is one, and it’s a heartbreaking story. Name the last industry-redefining innovation you saw from HP.  Think about it.

Well?

Nothing, right? The company that set the bar for Silicon Valley innovation has gone dark in that regard.

Then there are those who innovated, became cocky and blind, and can’t seem to recover. Research in Motion, maker of the BlackBerry, is the patron saint of these companies. RIM invented the smart phone category, but now it’s going down the tubes because it decided too late to chase after the iPhone.

Companies are all too happy to spend billions on marketing but nothing on innovation. Why? In part because innovation is HARD:

  •  It doesn’t come from pure theoretical research
  •  It doesn’t happen in engineering. We aren’t giving our engineers the time and resources to do anything but code Version 26.0 of an already-outdated product
  • It doesn’t come from the C-suite or the Board
  • It won’t come from academia unless we invest in it
  • It sure as hell won’t come from random, panicked acquisitions

Innovation comes from entrepreneurial people who know the markets working in tandem with engineers and scientists, because innovation is fundamentally about using research to meet a need or solve a problem. But that takes time and risk and resources, so we don’t do it. Instead, talented, passionate engineering and technical people go brain dead.

Unless we create a culture where engineers are secure and encouraged to think freely, openly and disruptively, we are simply giving them a paycheck until they find a better job. Also, if we want to innovate, we need to listen to a forgotten constituency: salespeople. Nobody knows the needs and concerns of the market better than the sales force. Creating a Culture of Disruption and making Sales a part of it would only help companies rediscover their innovative spirits.

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3 Comments

  1. Linda Bernardi on November 18, 2011 at 6:10 am

    Hello Linda. HP is a great company with massive potential. As my book discusses, within HP the is incredible talent and great potential. My life long mentor and dearest friend was Lew Platt the long time CEO of HP. From him I learned what a great org can be and delighted you are part of HP and clearly carry some great pride which is wonderful to see. Given the talent at HP, great stuff has happened and is happening, and so much more is possible and I trust that as things stabilize at HP under Meg, more amazing stuff is ahead! My very close friends are at HP and I often meet with various groups in Palo Alto… I believe that withing each engineer at HP resides the potential to change the world, as HP has done so in the past…. As my book discusses I garner great respect for HP and learned a lot working with Lew. A company focused on innovation and integrity. My best. -L



  2. Sarbajit Banerjea (Shorbo) on February 15, 2012 at 11:09 am

    Has it really been such a lean decade for innovation? Music lovers always deride the 80’s as having been one of the worst decades for music, but if you go check their Spotify playlists you’ll find guilty pleasures like hair bands and 80’s pop aplenty ☺ Maybe we’re just giving innovation in the last decade a bad rap?

    I think the models of innovation have changed. Instead of large think tanks and armies of engineers, there’s a dispersed collaborative model of collaboration. Musicians from around the world record an album by collaborating online and never meeting each other. Chip design teams in Silicon Valley, Bangalore and Haifa work round-the-clock to design a product in record time. I can get onto a freelancing site and hire programmers in Prague, copyrighters in Chicago and designers in Dublin to put together my web site inexpensively and quickly. These are exciting times!



  3. Paul Hilde on February 21, 2012 at 10:04 pm

    In addition to the points you make about why innovation could be suffering another argument for your perceived innovation slowdown is the fact the Wall Street puts great emphasis on the next quarter’s numbers and doesn’t look far enough into the future to recognize great innovation. Short term gains at the sacrifice of long term success are unfortunately becoming the norm for large corporations.