Real learning occurs at the point where theory and practice meet. As the saying goes, "I've learned it the hard way". And learning things the hard way is always humbling.
It has been a goal of mine to continually innovate. Innovation creates demand - which is what drives economies. It is only when something innovative is created that we discover we actually need it. I have had the experience of innovating inside large companies and through my own start-up. What my experience has taught me... is that large companies have an extremely difficult time innovating inside or out.
The classic challenge inside large companies is for the business units to think beyond the coming quarter, next model or feature. While they race to capture the revenue stream that exists today, new entrants disrupt the market. Often, companies will have R&D groups that are flush with innovative ideas but completely disconnected from the business units. One of the ways to overcome this is to have the R&D group and the business unit agree on a time frame and a shared vision. The R&D group can then go off and execute in line with that vision, with the business unit's buy-in. This is important inside a large company - but buy-in alone does not equate with successful innovation.
The challenge outside is different. Sometimes, large companies approach small start-ups to see how they can benefit from each other. This can be a very risky proposition for a start-up. You must be hyper aware of the fact that everything is going to take much longer than you anticipate. Alternatively, large companies should be very careful about engaging small start-ups. If you are a large company thinking about approaching a start-up, make sure you have a clear goal with a set time-line and budget on hand. If you don't have all these things, please don't waste their time. Time is the life-blood of a start-up.
As a small start-up, you have to be ruthless about how much time you are willing to invest in a potential partnership. Be very clear about what your expectations are. If the conversation does not unfold according to plan - deadlines are missed, calls are pushed back, more information is requested - stop. Refocus on where you are going and move things forward on your own path. Set a hard time-line with a definable goal - and if you don't meet eye-to-eye with your potential partner, let go.
So what is the path of innovation? It's taken me a lot of time and money to come to what I believe is a better understanding. First of all, big ideas start small. Now, I'm not suggesting that you shouldn't think big - thinking big is critical for innovation - but you must scale back what you attempt as the first iteration. Find the essence of the idea by removing complexity. Start with this essence and scale-up according to the real data you collect from the implementation of your idea.
Second innovation requires a small inspired team or individual. In many ways, this is the most difficult part to get right. People are complicated - often, they can't help but make things even more complicated for themselves. You have to know that everyone on the team respects each other. The wrong person can poison your team and lead you astray. Innovating should be joyful. I don't know how many times I was put on a team in a large company and thought to myself, "I would never choose to work with these people". As an aside - if you haven't heard of non-violent communication, please Google it. In general, people can really afford to learn how to understand and express their needs better. The big lesson here is to always take responsibility for what happens to you and accept that you always have a choice - nobody but you is to blame.
I have to admit I've been an innovation snob. I have had this misguided belief that innovation happens in the sleek and shiny black, silver, and reflective surfaces of corporate R&D labs - or somewhere in the 5 feet between my bed and my desk, in my home-based start-up. But innovation happens on the street. It happens wherever there is the immediate potential for money to exchange hands. Of course, you need to think about what's desirable and what's feasible - but you must not forget what is viable. All three have to be present from the inception. I live close to LA's fashion district. Strolling past the shop vendors selling garments, you will notice that they're constantly yelling out their offers. It's a dynamic marketplace that is super efficient and in order to succeed, you have to sell - and sell now. The global pace of innovation has made the world into a bazaar. If you fancy yourself an innovator, you don't have much time to dream up your ideas, refine them and coddle them. You need to know if they sell or not. Innovation is about generating a small revenue stream to start with and then iterating on it. If you're a large company, your best approach to innovation may be spinning off teams. You need to find the right people willing to take the risk and let them break free of corporate bureaucracy.
Iterate on your idea. Iterate on your team. Iterate on the implementation. Iterate on your revenue stream. Iterate and improvise. I really enjoy musical metaphors - I can't stop thinking about large companies as faded-out pop stars from yesteryear. They're still getting their residuals, but they're burnt out. Some of them still make decent music, but they've become so big that they're like gigantic marching bands - very impersonal. Everyone thinks and acts the same inside the organization and everyone is counting on the band leader. A good place for innovation is a small jazz band. The musicians respect each other, share the joy of music making, improvise, and speak the same shared language - yet each voice is unique to its instrument. If you want to innovate, be in that jazz band - and make certain that it's got gigs.
--written by Eduardo Sciammarella --editor Lucia Micarelli
