Innovation is still getting a lot of press, most recently we read an interesting piece in Business Week. (Can’t find it on their site, so no link, sorry.) In the September 22nd issue they published some results from the 2008 BW/BCG Most Innovative Companies survey. They lumped innovation into four primary types:
- Innovative products
- Innovative processes
- Innovative customer experience
- Innovative business model
They then lumped companies into one (or more) of the types. They created a 2×2 grid with growth and market cap as their axes. What they showed was that companies they considered to have the most innovative business models out-performed the other types in both growth and market cap. While we may or may not agree with the categories they put the various companies into, we do not see that they had a bias to come to a conclusion. However, we like the conclusion since one of the key premises of Value Acceleration is that business processes are the key to sustainable competitive advantage.
Mitch & Ralph