innovation, IT and the global economy

ZDnet has an article about what US IT firms need to do to stay competitive.

From the article:

We all recognize it: the light bulb that appears overhead when a character in a book or cartoon comes up with a bright new idea. "I've got a great idea!" the character says before explaining an innovation.

But companies can't afford to sit around waiting for lightning bolts of inspiration. A one-time flash of creativity might grab headlines for a day or boost sales for a quarter, but long-lasting business success requires a process of innovation that is reliable and consistent.

In today's global economy, innovation is the single most powerful competitive weapon an IT organization can wield. At the same time, it is fraught with risk. One study found that for every product success, 3000 new product ideas and 125 small projects fail.

the article argues that

The only way IT companies can stay competitive is to implement a consistent, predictable innovation strategy.

and to do so, the typical corporate mindset about innovation needs to change:

Too often, however, innovation is regarded as an expense that may--or may not--pay off for the organization. As a result, many companies allocate minimal resources to innovation--resources that are vulnerable to cuts when the organization faces temporary difficulties. If, instead, you view innovation as an investment, you take a long-term view, build capabilities, and internalize best practices so you can maximize the return on your innovation investment while minimizing risk. For many companies, this is a dramatic, philosophical shift.

the article makes several other salient points including the value of cross-disciplinary efforts with regards to innovation and the need for innovation to be seen as part of everyone's job, as opposed to a select few - to integrate the spirit of innovation throughout the organization.

the prospect of global competition in all fields, including IT, is at the same time exciting and scary. collectively, we can not afford "business as usual". competition from china, india and elsewhere has pushed up the bar for american IT firms. this article challenges us to rise to the occasion and offers some solid advice on how we can do so...