Feb 15, 2006

On Strategic Innovation

Vijay Govindrajan says:

Organizations must allocate their resources among three boxes. The first box is for managing today, competition in the present.
The second and third boxes are called "selectively forgetting the past" and "creating the future," these two boxes are about competition in the future.

"For innovation, a breakthrough idea is only a start. Too often successful companies focus on idea generation. The execution part, they think, is boring, and besides, they feel they are already good at execution. But their execution has been in box one, (having to do only with current changes) which is very different."