Demystifyed Innovation Essay

6135 WordsApr 1, 200925 Pages
Demystifying Innovation By Eric L. Chen and Kathryn Kai-ling Ho June 2002 Demystifying Innovation by Eric L. Chen and Kathryn Kai-ling Ho I. A FRAMEWORK FOR ASSESSING INNOVATION The importance of innovation has been described in a multitude of ways in recent years: Innovation has displaced quality as the standard for differentiation. Innovation is the only sustainable competitive advantage. Innovation is a necessity for continued existence. No matter how it is portrayed, innovation is understood by today’s vast business audience to be vital to any organization's success. Our research at the Cap Gemini Ernst & Young Center for Business Innovation (CBI) has shown that innovation is valued highly by the financial markets as well. Statistical analyses of industries, ranging from durable manufacturing to B2B e-commerce, place innovation at the top of the list of nonfinancial drivers of corporate market value. But providing evidence of the value of innovation is no longer enough. If we know that the market is incorporating innovation into its valuation of companies, then it follows that we must also carefully examine how innovative we are. To understand this, companies should be asking two major questions: How do I recognize innovation in my organization? And, can I assess my organization’s innovativeness? Over the course of our research, our unique perspective on the topic of innovation assessment has been utilized as the basis for several major projects, such as helping large corporations better identify and foster innovations and creating the judging criteria and assessment tool for Singapore’s National Innovation Award. As such, we strive to help organizations at large answer the stated key questions. In developing our framework for assessing innovation, we drew not only from our

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