Innovation Management ? IBM Opens Lid On Its Treasure Chest

IBM, which registered 3248 patents last year, has decided that sharing technology can sometimes be more profitable than jealously guarding its property rights on patents, copyrights and trade secrets (Herald Tribune, April 11 2005).

International Business Machines have come to the above conclusion 205 years after the invention of electric light ? thus clearly illustrating that even the 19th largest company in the world (fortune.com) with a market capitalization on $141 billion (nasdaq.com) is still only learning about creativity and innovation.

Of course the issue of control is important but a quick history lesson indicates that the above should not have taken so long!

The first electric light was made in England by Davy, in 1860 Swan attempted to devise a long lasting light using carbon paper, in 1877 Brush lit up Cleveland Ohio and in 1879 Edison began work on a practical light bulb that would eventually glow for 1500 hours.

Recently, Linux ? open source software developed through collaboration on the Internet ? has grown to the extent that it is closing in on Microsoft's market share (news.com).

The above two examples indicate a number of factors about creativity and innovation that IBM should have learned a long time ago, some of which include:

a) Creativity (problem identification and idea generation) and innovation (idea selection, development and commercialisation) can take years and use huge resources ? collaboration, networks and shared tacit knowledge rapidly reduce investment and rapidly increase speed to commercialisation.

b) Radical changes result from incremental improvement.

c) Radical shifts require the input of new knowledge.

d) New knowledge and incremental improvements result from eliciting tacit knowledge from a broad knowledge base.

e) New knowledge and incremental improvements result from eliciting ideas from a number of sources, a number of diverse sources and a number of novel sources ? by utilising networks.

f) New knowledge and incremental improvements result from eliciting ideas from a number of sources, a number of diverse sources and a number of novel sources ? through collaboration.

In conclusion, the probability of producing world changing innovation in-house is low. The knowledge pool is simply too shallow. And that can be said without considering motivation, group structures etc etc etc.

This topic is covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email address at this site.

Kal Bishop, MBA

**********************************

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

---

Have You Always Thought That The Best Ideas Come From Research Or Management? Think Again

Many entrepreneurs and chief executive officers are unaware that there... Read More

Six Sigma Training 101 ? Better Management Basics

What is Six Sigma?Six Sigma is a quality management program... Read More

Dealing with Difficult People

You know, this would be a great business if it... Read More

Lone Rangers Suffer without Tonto

A lone ranger is someone who prefers working in solitude... Read More

Five Essential Hiring Practices

Recruiting and hiring are often done in haste, leaving the... Read More

Hire People For What They Do Best

I recently flew from Seattle to Atlanta, I realized, just... Read More

Five Tips for Analyzing an Income Statement

In today's article, we'll be looking at the income statement,... Read More

What to do When You receive a Bad Check

As a small business operator, personal checks may be one... Read More

The Three-category Approach to Performance Management: Effort, Ability, or Environment

Performance Management is the act of managing personal or organizational... Read More

Communicating with Case Studies

A few weeks ago, a couple of colleagues and I... Read More

Service Level Agreement (SLA) Boot Camp

Service Level Agreements, or "SLA's" are tricky but useful mechanisms... Read More

Internal Prisons: The Thief of Productivity and Quality in our Workforce

As a professional speaker, one of my biggest challenges is... Read More

Inventory Management 101

Inventory management may seem complicated to some, but if one... Read More

Leadership: Stoking The Success Train

Everyone wants to succeed yet everyone has a different perception... Read More

Managing People - Why Is It So Difficult?

Managing, supervising, being a team leader is the hardest job... Read More

Five Ways to Turn Resistance into Opportunity

Resistance. It isn't something people cherish or enjoy encountering. We... Read More

Getting Your Employees Attention Back to Work

It is 9:00 am on a Monday morning. Do you... Read More

How to Help Your Company Become a World Class Company

Most people think real change in an organization occurs as... Read More

Selecting a Business Broker or Intermediary to Help You Sell Your Business

As crazy as it seems, some people spend more time... Read More

Giving a Good Appraisal Interview

Although this performance discussion is an opportunity for you to... Read More

Taking on Six Sigma Programs - Guidelines for In-House and Outsourcing Decisions

Based on a wild guess by a close associate of... Read More

Allan Kempert Discovers That Truly All You Gotta Do Is Ask

A year or so ago, I met Allan Kempert. Allan... Read More

Gossip And Rumors And Hearsay, Oh Why?

In the Wizard of Oz, it was "Lions and tigers... Read More

Re-Discovery Procedures for Building Effective Management Systems: Phase V

Now we turn the corner to our final phase: Re-Discovery.Last... Read More

A Comprehensive Sarbanes Oxley Act Summary

Individual and corporate security stand in the center of the... Read More

Learning To Let Go

If you have the entrepreneurial spirit (which clearly you have!),... Read More

Business Innovation ? Organizational Culture

Creativity can be defined as problem identification and idea generation... Read More

Successful Managing Through Delegation

Managers should avoid the tendency to constantly delegate to the... Read More

Creativity Management and Behaviour

What behaviour maximises the chances of thinking of great ideas?... Read More

Instantly Uncover Your Corporate Culture

Best Definition of "Corporate Culture"If you ask 10 people to... Read More

Building Trust in Your Business Relationships - 10 Steps

There are some simple things you can do with your... Read More

Creativity and Innovation - Large Firms Versus Small Firms

There is a pervasive assumption that small firms are more... Read More

Management & Leadership - Doing it right in the 21st Century

The Old Way ? Command and ControlAlthough workplaces and management... Read More