Perspective # 2 :Product Innovation is not the only innovation

Product Innovation is not the only innovation: When we think of innovation, many think of product innovation – like iPod, Moto Razr or Google.

The fact is, you can innovate anywhere – in business models, in customer service, in processes, in strategy, in execution and the list goes on.

Yes, there is more visibility in product innovation. The semiconductor industry is a classic example. Last year the world produced more transistors (and at lower cost) than grains of rice. Yes - the Moore’s law is going strong even after 40 long years!

Though service innovation or business model innovation or reinventing business processes is unglamorous and does not have the visibility and high street resonance of a new product discovery, but it certainly counts.

A. G. Lafley, CEO of Procter & Gamble who are reinventing themselves with innovation and aiming towards the goal of attaining 50% of the revenues from new products, said to his teams. ”I want innovation across the spectrum — in how we market, manufacture and distribute.”

IBM CEO Samuel J. Palmisano, also makes this point, “The way you will thrive in this environment is by innovating -- innovating in technologies, innovating in strategies, innovating in business models.” This is the message every CEO needs to convey.