Innovation for Breakthrough New Business Growth Strategy
|Date Published||January 1, 2005|
There are two ways to increase the profitability of an enterprise. One way is to reduce operating expense. Another way is to create profitable new business growth. Many organizations are achieving excellent results in optimizing operations and reducing operating expense by incorporating a Six Sigma approach or other forms of Total Quality Management. However, few companies recognize that this is also a powerful contributor to improve their approach for creating new business growth, which is a more ustainable way to increase profitability. The basic premise of a Six Sigma approach is to understand that everything we do evolves around processes. Once we understand the process we use to identify new products/services, we can establish measurements on process performance. Once we have measurements, we can apply statistical techniques to reduce process variability. Our journey towards new business growth performance excellence has begun. The reason that most organizations have difficulty in achieving new business growth excellence is that their process for identifying and developing new products/services is not effective and at best results in incremental growth. There is no point in applying improvement toward an ineffective process. The process needs to be replaced with a more robust best-in-class process. Establishing a process for significant new business growth stemming from breakthrough innovation involves five pillars. The first pillar is to clearly define the often misused and misunderstood term “innovation.” The second pillar is establishing metrics to insure that expected results are clearly understood in quantifiable terms. The third is establishing an innovation culture so that significant opportunities bubble up through the organization. The fourth is building a support structure for innovation by creating a communication and “pull” system poised to implement innovative opportunities. The fifth pillar is positioning a strategic team process for innovation. This team process should establish an in-depth understanding of customer and industry insight, position innovation as an overall process engine, and spell out the course for significant new business growth.