On consultaglobal Nokia’s innovation system is examined. The article begins by quoting Nokia’s former VP of Corporate Strategy, Jarkko Sairanen, as saying, “If a formula existed that could deliver successful innovations on schedule, every company could be a winner. Most managers will agree that innovation drives success, but there is no blueprint to show them how to generate it.”
Perhaps, Jarkko’s position is the voice of bravado coming from a company that enjoys a very big market share position. On the other hand, maybe this statement is voice of complacency that exposes a chink in Nokia’s armor.
Nokia’s market share in the US is now down to 10% from 28% five short years ago. Here is one market where Nokia is now playing catch-up and facing stiff challenges from competitive products like the i-phone. Will other markets soon follow?
Clearly, Nokia is doing some things right. The article mentions blending business thinking into go/no-go decisions when deciding which initiative to move forward with. The importance of building a culture where innovation is something that everyone is expected to do is stressed. Yet while everyone is expected to make innovation contributions, it would seem that no consistent way to equip people to make those contributions has been pursued.
One can’t help but wonder, if Nokia has built its current market position subject to the vagaries of accidental innovation, how much greater would there success had been if they had an understanding of sustainable innovation and put the principles of repeatable innovation practice into play?
The bottom line is that innovation recipes do exist, and many organizations are using them to cook up tremendous offerings that will deliver their customers value and in so doing build value for the company. If you aren’t among these innovation leaders, it’s time to get cooking before someone else eats your lunch.
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