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IT Management Slideshow:
Innovation: How Apple, Nike, and Procter and Gamble Jump the S-Curve

By Dennis McCafferty on 2011-04-05


Distinguishing an organization is intensely competitive and fast-paced, turning up the pressure on CIOs and other top managers to constantly innovate. In the book, Jumping the S-Curve: How to Beat the Growth Cycle, Get On Top, And Stay There (Available now/Harvard Business Review Press), authors Paul Nunes and Tim Breene present strategies to guide business and technology leaders toward a steady string of peak performances. The highlights presented here include lessons learned from Apple, Nike and Procter & Gamble. The term S-curve gained ground in the early 1960s at Stanford University, then took hold during the Dot.com era to describe the rollout of new Web-based technologies. For the purposes of their book, Nunes and Breene define the S-curve as the modern cycle of innovation in today's rapidly shifting market: Performance starts slowly as a business is launched and a company experiments to find the right formula. It then accelerates as word of appeal spreads, until it peaks and then fades with saturation. By then, companies already should be fully involved with introducing new innovation. Many of the book's product-based lessons learned are highly transferable to any CIO seeking to maximize high performance for internal or external customers. Nunes is executive director of research at Accenture's Institute for High Performance. Breene is CEO of Accenture Interactive.

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Myth: Being above average is good enough.

Reality: Being above average in today's climate will fail to provide needed differentiation.

Three building blocks to command the S-curve:

1. Commit to a big-enough idea. Then define and execute an edge-centric strategy.

Three building blocks to command the S-curve:

2. Build threshold competence before scaling to determine/build capabilities.

Three building blocks to command the S-curve:

3. Emerge as valued by achieving shared high expectations among your teams. Cultivate a hothouse of talent within those teams along the way.

Where do ideas come from?

Great tech ideas do not necessarily come from tech-focused research. They're often derived by studying demographic, geo-political, societal, economic and other global dynamics.

Listen Up

The best innovators and performers are great listeners. Procter & Gamble's “Living It” initiative results in employees literally residing in the homes of consumers for days. “Working It” deploys execs to work retail counters.

Manage It

Constant high performance and innovation requires managers to break the future into manageable chunks. Apple moves smoothly from iPod to iPhone to iPad by plotting out cycles, and then working systemically within each one, using past success and resources to fuel future market domination.

Six Must-Have Factors for Any Innovative Idea

AffordabilityUsabilityReliabilityNoveltyDesignImpact

Replication is key

Nike uses the same celebrity-driven formula whether the sport is basketball, football, cycling or soccer. Similarly, CIOs can develop their own success templates for multiple departments, geographic regions, etc.

Talent Hothouse

If you're no longer attracting or developing stars, and your proven players are unexpectedly leaving, it's a sign that overall performance has peaked and stagnation is settling in.

Future Chunks

Avoiding stagnation means thinking two or three future chunks ahead. The time for new strategies is when you're reaching the top of the S-curve, not when you're on the way down.

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