Commentary by Tom Fraser on a question posted on LinkedIn by another member

Response Date: 05 September 2013

Question: Prof. Andy Andrews, director of the Blue Ocean Strategy Institute states that South African business isn’t innovative enough to move from average to excellent. Do you agree or disagree? Tell us why…

Posted By: Prof. Andy Andrews, director of the Blue Ocean Strategy Institute

COMMENT

Tom Fraser commented: 05 September 2013

Having read member responses to the above question, for me one of the most misused words in

boardrooms is Innovation. How often do we hear statements such as; "We are an innovative

company', or; "We are great at innovation", or, innovation may be a word used in a brand's pay-off

line etc.

Innovation is also a word that I have in a way come to detest over the years. This may or could

sound like a harsh comment but why do I make this comment?

Sometimes the word “Innovation” is used to such an extent by leadership and management in

organisations where innovation is not actually happening, that those leadership and management

teams start believing that they are innovating in their competitive environments, when in reality,

they are not. This tends to lull them into a false sense of security that they are innovative and that

because of this, that they have competitive edge to perform and grow in the harsh competitive

environment, while they are actually not keeping up with or leading their competitors.

So what does innovation really mean? Let’s briefly look at a question that I have often posed to

audiences at conferences and in the lecture room;

S.A. Institute of Directors Discussion Group

"If you believe that you are part of an innovative company, put your hand up.” Many hands go up

every time, but when I ask the “real’ question, most of the hands instantly go down. It is quite

amazing and has been no different for many years when talking to audiences or business leaders.

So here in my view is the real question":

"What is it about your innovation driven and differentiated company / brands / product/services /

offering / reputation and that which you are doing on the innovation front to DIFFERENTIATE

you/your brands, that causes existing and very importantly, POTENTIAL customers, to stand

queuing at your sales/business development door, and not at the doors of your competitors?"

When I ask this, all hands go down and have for many years!!!!

Why?

Is the horrible truth and reality for most who read this, that your existing and POTENTIAL

customers ARE NOT queuing at your door (this is why all the hands go down!). The real truth is

that in most industries and marketing environments including Business 2 Business, Fast Moving

Consumer Goods etc, is that the technologies, products and services offered amongst competitors

are actually more or less the same!!!

If this is true for you and your business, then what does innovation actually mean to your

business/brand and to your future, if your aim is to be truly innovative for real competitive edge that

will result in clients and POTENTIAL clients queuing at your door?" [Innovation is a key driver of

Differentiation - Ultimately driving sustainable growth, earnings and returns.

In summary, 'What does Innovation truly mean to you and your unique organisation and brands

within its competitive environment?"

I would also pose the question "So what are doing about it in your organisation?"

I look forward to reading other's views on this are.

Tom

Johannesburg 05 September 2014