Closing the Innovation Gap (Part 3)

From Closing the Innovation Gap by guest author Judy Estrin

Openness

Innovation requires an open mind and an atmosphere that encourages people to imagine, think broadly, collaborate, capture serendipity, and have the freedom to create. Curiosity needs to be coupled with the ability to critically evaluate data, accept input, and be ready to adapt to change.

Lack of imagination kills many a project. At Zilog in the late 1970s, we developed a networked computer system that was years ahead of its time, nearly the equivalent of a PC running Microsoft Word. We demonstrated one of these machines to the management of Exxon, Zilog’s main investor. Exxon, however, had also poured millions of dollars into typewriter companies developing dedicated word processors. Our group had a vision of the future, but Exxon’s management couldn’t imagine why anyone would want a general-purpose personal computer. As my former boss, Joe Kennedy, recalls, “They had already invested in these typewriters that they were calling word processors and said ‘Why do we need another one?’ If Exxon had taken the time to understand what we had, Zilog could have beaten both Microsoft and Apple to market.” Instead, Exxon passed, and many Zilog employees left to start their own companies. Silicon Valley is filled with successful new ventures launched by innovators who became entrepreneurs when their management would not consider new ideas.

Some of the most significant inventions in history — from penicillin, to Viagra, to Post-it Notes – were created because someone was open to looking beyond the original plan. Viagra was originally developed as a drug for hypertension. By paying attention to one of the compound’s unanticipated side effects, Pfizer launched a new era of drugs that treat sexual dysfunction, and created one of its best-selling products. Capturing serendipity requires flexibility and being open to surprise. Without a culture of openness, deviations from plan are often covered up, instead of coming to light early so that the company can adapt.

Openly sharing information also creates pathways for valuable feedback. Some of the most costly failures in Silicon Valley were the result of projects that had been kept under wraps for too long. Roger McNamee, managing director of the private equity firm Elevation Partners, points to the collapse of many early “pen computing” companies as the result of people “thinking they had something so incredible they couldn’t show it to anybody. As a consequence, they never got feedback saying, ‘Guys, this is stupid, you’re making a brick with a pen that doesn’t work.’”

There’s a natural tension between openness and focus in all areas of innovation, especially in development of products or programs. It’s possible to be too open, always changing direction or specifications so that nothing gets done. But too much focus can overly constrain innovators. At the beginning of a project, when looking at needs, framing questions and coming up with ideas, you want to encourage broad thinking and experimentation. Once a specific path is agreed upon, it’s time to execute and not constantly reformulate the solution or add “just one more” feature. But it’s important to open your mind again when periodically assessing and making decisions as to how to proceed. Otherwise you can end up with focused execution toward a goal that may no longer be the right one.

Microsoft, which began as a software tools company, ended up in the operating system business to meet the demands of a very large customer — IBM. “If Gates had sat down and said, ‘No, I’m focused on tools,’” says entrepreneur Marc Andreessen, the co-inventor of the Web browser, “someone else would have been Microsoft.”

This segment is part 3 in the series : Closing the Innovation Gap
1 2 3 4