We have been following Rita Gunther McGrath’s treatment of resource allocation issues in making firms more nimble. And now we get to a rather important question. How can an average firm develop “innovative capacity?
Rita starts off with a cautionary note. This capacity does not just develop on its own. Like any other capacity, one must invest in it in order to see improvement. This is a problem for most firms because they are so absorbed in just doing what they do now. Moreover, they find it troublesome to find the resources to take away from current production in order to develop new things. Moreover, the expertise to do innovation is built up — over years.
What does it include? Rita offers this list
- trend analysis
- market sizing
- options analysis and valuation
- designing prototypes
- ‘creating discovery driven plans
- making the transition to scalable business
This is a lot and it is not easy to master it all – one solution is to contract with experts who already have the expertise. next, Rita will walk us through how a consultation with such a firm might work.