Clearly, firms that are able to exploit market opportunities quickly (so called nimble firms) have a certain proficiency that other firms lack. They are able to innovate. Not on an ad hoc basis, but systematically. How do they do it? Are they just really, really, really smart? Or do they approach innovation in a systematic way. Rita Gunther McGrath argues that they are just more systematic about incorporating innovation into the firm’s organization. In this chapter of her book “The End of Competitive Advantage”, she discusses how to do it. so listen up!
The first step is perhaps the simplest to understand. If you want to innovate on a more systematic basis, you need separate innovation oversight. It sounds simple, and yet, most firms don’t do this.This is more than just funding research. It is means building the governance system that is needed for a strategic approach to innovation. What does that look like? that is next!