Innovation: Buzzword or Bellwether?
"There are three basic factors for successful innovation: demand, design, and doability," Peppers & Rogers Group cofounder Don Peppers said during his recent keynote presentation at the Gartner CRM Summit. "All of these are customer focused." Apples' iPod, for example, continues to dominate the market, even at a higher price point, because the company has woven these elements into its approach to innovation.
The feature article in Today's Return on Customer newsletter, Innovation, Employees, and Customer Value, discusses how Whirlpool and Toyota involve employees in that customer-centric innovation process. Interestingly, Whirlpool uses a knowledge management system it calls Innovation E-Space to provide employees with a 'dashboard' view of its innovation activities, track ideas, and engage potential innovators throughout the organization. Whirlpool executives have created initiatives like Innovation E-Space to foster a customer-focused culture of innovation through employee engagement.
At Toyota, the well-known Toyota Way drives innovation by inspiring employees to "come to work each day with a determination to become just a little better at their job than they were the day before," the article notes. Toyota's results are just as well known.
Innovation may be today's hottest buzzword, but it's certainly not a fad. Toyota's success shows that a culture of customer-focused innovation can lead to long-term success.
What's your opinion of Whirlpool or Toyota's approach? How do you drive innovation in your organization?
