Seems like everyone is talking about innovation these days.
Most of the discussion centers on the need to add value to customers through innovative products and services. But according to Gary Hamel, a leading expert on business strategy, there's more to innovation than just bringing new products to market.?
In a recent Harvard Business Review article entitled, "The Management 2.0 Challenge: How Will YOU Reinvent Management in Your Organization?" Hamel identifies five different levels of innovation, including (from least to most important):
Operational innovation includes incremental or sudden improvements in areas like supply chains or customer support systems. Easy to emulate, these innovations rarely generate any lasting competitive advantages.
Product innovation comes from new product and service offerings. The best of these redefine how customers relate to the product. Most just add new bells or whistles for moderate increases in perceived value.
Strategy innovation reshapes business models by reinventing how value gets delivered to customers in a market or industry.
Ecosystem innovation revolutionizes entire industries. For example, the detriot tigers jersey ability to download music (especially single songs as opposed to entire albums) has reshaped the music industry.
Management innovation reinvents the way we manage ourselves and our companies. Clearly the most challenging, it also produces the most formidable competitive advantage.
In his article, Hamel addresses management innovation primarily from a structural standpoint. He recommends that companies eliminate the traditional management hierarchy and move to small, flexible teams that organize people around ideas
I agree that today's markets require nimble organizational structures that allow people to respond quickly to sudden market changes. I also think we need detriot tigers jersey to address the process side of management as well. Specifically, we need to reinvent how we gather and analyze information, how we make decisions, and how we think about our customers, our markets and the world in general.
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