There is a question of what is the cost of innovation
There is the question of is innovation worthwhile – meaning what is the cost of not innovating and where or not the effort of innovating is profitable.
The question I am interested in is not “should we innovate?” It is not is innovation a worthwhile or profitable effort. I think it is. Not because I analyzed it and got to the conclusion that it is profitable. Not even because I think that not innovating is so dangerous that it justifies innovating – even at the cost of short-term losses.
I think we should innovate because some of us have an unstoppable urge to innovate.
We, humans, innovate much the same way birds fly and spiders weave webs.
I am not saying that it is the defining attribute of humanity.
I am saying this – almost as much as most people dislike change and the process of innovating – and most people hate change and the process of innovating (they still enjoy the innovation – but not the process, nor the adoption period) – some people love it and need it and cannot not do it.
The human race has a certain percentage of its population that is driven by the desire to change, explore and innovate.
So, the answer to the question is innovation worthwhile – for me is moot.
Now, if we only look at that group of people, the ones that are driven to innovate, I want to know, what is the ratio of effort to success. I want to know how efficient that engine is. I want to know if perhaps maybe, it can run better.
Why?
Well, because I spent my life innovating. At first as an amateur. Later, professionally. I spent over a decade working with some of the largest companies in the world on their innovation strategies, processes, developing new products and services - you name it. A dream, right? Well, not so much. Looking back, I have learned this: The amount of effort invested in the innovation funnel was literally incredible. I am talking about thousands of ideas leading to hundreds of tests, leading to dozens of mini-projects, leading to a horribly slow and incremental trickle of uninspiring, innovation. Take the food industry – the vast majority of innovation is in packaging. Why? Because it is almost always a cost-saving innovation – and reducing cost improves the profit directly which affects the stock price which makes the leadership happy because they can afford a private jet…. There is no incentive to introduce groundbreaking innovation, because, as you remember – most people don’t like groundbreaking. Most people like things to stay the same.
I also spent around a decade working with startups and have been an entrepreneur myself. I worked with many dozens of new ventures – mostly in Israel but also in other countries. This is what I learned from my startup ecosystem experience – being an entrepreneur sucks. More about that soon.
Shahar
Innovation is the life blood of industry. Without innovation, our industry will become inefficient and unable to compete. Lack of innovation is fatal to industry, so I agree with you. I have spent my Engineering life innovating both product and production methods.
I helped make and keep a lot of jobs for others too, and I am proud of that.
Stay innovative, and be blessed!
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