Cover of Beyond Entrepreneurship by James Charles Collins, William C. Lazier - Business and Economics Book

From "Beyond Entrepreneurship"

Author: James Charles Collins, William C. Lazier
Publisher: Business & Professional Division
Year: 1992
Category: Business & Economics

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Chapter 8: Innovation
Key Insight 1 from this chapter

Receptivity to Ideas from Everywhere

Key Insight

Innovative organizations prioritize an open mindset and quick action on ideas, rather than merely generating more of them, as good ideas are plentiful. The primary hurdle is to cultivate and implement existing creativity, which means overcoming the learned tendency to criticize and instead focus on making ideas work. Many historically significant creations, such as the telephone, Federal Express, the personal computer, and 3M Post-it Notes, were initially dismissed as unfeasible or 'stupid' by experts, highlighting the critical importance of a receptive environment.

Ideas must be sought from both internal and external sources. Companies must actively counter the 'Not Invented Here' (NIH) syndrome by encouraging employee exchanges, hiring outside designers, supporting participation in industry groups, funding travel for exposure to new concepts, and maintaining customer suggestion boxes (e.g., Stew Leonard’s Dairy receives 100 comments daily and responds within 24 hours). Internally, innovations like the Big Mac or Post-it Notes often bubble up from all organizational levels, with leaders primarily serving to reduce resistance and ensure ideas are treated as if they originated from the top.

A crucial paradox exists between market-pull and idea-push approaches. While traditional business models advocate defining market needs first, many breakthroughs (e.g., the fax machine, Mrs. Fields Cookies, the radio) were solutions that created their own markets, proving that customers often don't know what they want until it's presented. Sony’s Akio Morita exemplifies this, stating, 'We seek to lead the public with new products, rather than ask them what they want.' While market input is vital for incremental innovation, initial breakthroughs often stem from a curiosity-driven 'idea-push,' frequently when the inventor acts as their own customer. The most successful strategy integrates both approaches, rejecting extremist views.

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