INNOVATION IS FUNDAMENTAL: It is a DERISKING PROCESS that converts a pool of INTERESTING IDEAS into PROFITABLE CASHFLOW.

When your leadership team internalizes this essential fact, they will inevitably commit to innovation as a continuous process, one that has to be managed and invested in like any other, such as supply chain, quality, sales, etc. Rather than treating it like some sort of cute, fun thing to try when revenue is up for the quarter and they have cash to throw around.

Anything other than derisking ideas to drive towards profitability is NOT innovation. You might be doing stuff to puff up your brand, or to puff up your revenue, or to puff up your career, but if it doesn’t generate new profit, it is not innovation. SHOW ME THE CASHFLOW!

One more time:
INNOVATION IS SIMPLE: It is the de-risking process from idea to cash flow.

The word innovation is loaded with fluff and buzz that it has become meaningless. But you must realize that taking ideas to all the way to profitable revenue is a core process demanded of any sustainable and viable ongoing business.

That’s why so many companies suffer from weak product management and still think they’re doing innovation. They’re just doing sustaining product development that’s adding revenue (or better phrased as barely holding on to revenue) but is not increasing profitable cash flow. That’s a whole lot of work and fury without contributing any effective results to the bottom line.