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Calculate How Much Your Company Should Invest in Innovation

Harvard Business Review

Identifying this so-called “growth gap” is critical, because the bigger the gap, the more a company needs to look beyond its current offerings, markets, and business models to find growth opportunities. By reaching new customers in current markets? There are two ways to set revenue targets.

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Looking to Join the Lean Start-up Movement?

Harvard Business Review

There is a growing sense that so-called lean start-up techniques — developing a minimal viable product, learning in the marketplace, and pivoting based on market feedback — can help to unleash this potential. Studying the book market then led Bezos to locate his company near some of the major book distributors.

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Founding a Company Doesn’t Have to be a Big Career Risk

Harvard Business Review

That was the general consensus after one of my favorite HBS classes: an entrepreneurship case on a company called Tickle. The most important way to mitigate risk is to become excellent at either engineering, product, selling, or operations and management. “I’m so glad we read that case — I’m NEVER going to start a company.”.

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Can HP Change its DNA?

Harvard Business Review

It governs an organization's cultivation of its intellectual capital—how it leverages what it already knows how to do, and how it evolves its offering based on changing market demands. In a company setting, that would be the economics of its business model. With hardware markets, money is spent upfront to develop a system.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Or perhaps it is difficult to really tell how well a company's innovation engine is functioning — so magazine editors are susceptible to the latest hot product or service. There's no doubt: measuring "innovation" is a fuzzy business. Part of the problem is there isn't a clear consensus on what marks an innovative company.

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Investors Punish Amazon for Investing in Disruptive Growth

Harvard Business Review

Its earnings were down 73% from the quarter a year earlier and it missed the analysts' consensus estimate of $0.24 Kindle Fire Tablet — a new market disruption enabled by business model innovation. On Tuesday, Amazon.com reported third-quarter earnings that fell far short of Wall Street's expectations.

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What Makes Some Silicon Valley Companies So Successful

Harvard Business Review

The kind of innovation that creates new markets always goes against the grain. Artificial constraints, such as formal organizational hierarchies and belabored consensus-building processes, create waste and dampen motivation. Think like engineers and customers. Here are the ones that struck us most: Lace audacity with grit.