According to McKinsey, every large company that is a high performer in product, process, or business-model innovation does the following: 1) Regards innovation-led growth as critical and sets cascaded targets that reflect this; 2) Invests sufficient resources in a coherent, time- and risk-balanced portfolio of initiatives, 3) Discovers differentiated business, market, and technology insights, 4) Creates new business models that provide defensible and scalable profit sources; 5) Develops and launches innovations quickly and effectively; 6) Launches innovations at the right scale in the relevant markets and segments; 7) Creates and capitalizes on external networks; and 8) Motivates, rewards, and organizes people to innovate repeatedly.
The eight essentials of innovation
It's no secret: innovation is difficult for well-established companies. By and large, they are better executors than innovators, and most succeed less through game-changing creativity than by optimizing their existing businesses. Video Yet hard as it is for such organizations to innovate, large ones as diverse as Alcoa, the Discovery Group, and NASA's Ames Research Center are actually doing so.