Redefining the terms of competition through innovation

An excellent article from BAI Strategies:

"SYNOPSIS - Business thinker William C. Taylor says that great companies are built on original ideas, emotional connections with their customers and leaders who know how to harness the collective genius of their organizations. Successful competitors, he says, must use these strengths to differentiate themselves from the pack since such distinction is the key to long-term success, particularly in turbulent times.

Leaders everywhere remain hungry for innovation — new offerings in the marketplace, new technologies in the workplace and new techniques to create value in an economy marked by turmoil and uncertainty. But long-lasting innovation is about more than selling a hot product or unleashing a "killer app." It is about standing for important ideas that shape the course of an industry and ideas that repurpose the sense of what's possible for customers, employees and investors. The most successful organizations today don't just out-compete their rivals; they redefine the terms of competition by embracing one-of-a-kind ideas in a world filled with me-too thinking."

Article continues...

Let me summarise in a series of dot points:

• What do you stand for? Could you say it one word what differentiates you from your competitors (convenience? smarts? heritage?) Can your frontline staff do it as well?
• Break the mould in your category through simplification - its harder than it sounds
• Be the best at something, not average at everything
• Commit to long term, consistent application of that capability
• Make sure its all strategically alinged - any new shiny thing thats not on your roadmap should be ignored
• Dont confuse single minded ness towards a goal with tunnel vision - make decisions in the widest possible context to ensure you're creating difference and opportunity
• Whats more important to short AND long term - incremental wins or big game changers?
• How can you look at your business with a new perspective, with fresh eyes?
• Emotion, passion, identity creates innovation and advantage, not price, performance, features.
• Stick to your core business - a bank is NOT a technology business, a set of retail outlets, or a music/itunes business (CommBank ...) - its a money management facility thats a necessity in life rather than a desire.
• The management doesnt always have the answers

And from me -

• Avoid the workshop titled 'So, whats our ipod?'. Danger.
• Dont confuse improving your customer experiences to meet expectations with creating competitive advantage through innovation and new ideas - one is hygiene, the other is harder to measure