Product and service innovations are the result of mutually
interacting creative and coordination tasks within a system that
has to balance technical decisions, marketplace taste, personnel
management, and stakeholder commitment. The constituent elements of
such systems are often scattered across multiple firms and across
the globe and constitute a complex system consisting of many
interacting parts.
In the spirit of the "butterfly effect," metaphorically
describing the sensitivity to initials conditions of chaotic
systems, this book builds an argument that "innovation butterflies"
can, in the short term, take up significant amounts of effort and
sap efficiencies within individual innovation projects. Such
"innovation butterflies" can be prompted by external forces such as
government legislation or unexpected spikes in the price of basic
goods (such as oil), unexpected shifts in market tastes, or from a
company manager's decisions or those of its competitors. Even the
smallest change, the smallest disruption, to this system can steer
a firm down an unpredictable and irreversibly different path in
terms of technology and market evolution.
In the long term, they can shift the balance of the entire
innovation portfolio into unplanned directions. More importantly,
we describe how innovation leaders can influence the emergent
behavior of the system for good or ill.
The first half of the book draws parallels from physics,
economics, and sociology as well as evidence from multiple
industries to describe the structural and behavioral causes of
emergent phenomena in innovation settings as well as their often
negative impacts. In the second half of the book, we turn to
distributed management of innovation under emergence. We show that
innovation butterflies, if improperly managed, most often lead to
negative outcomes. On the other hand, it is also argued that while
the complexity of the innovation system and the desire to
experiment and try new and emergent alternatives precludes precise
planning, innovation leaders can actually tame innovation
butterflies through the design and implementation of appropriate
processes, strategies, tools and leadership choices.
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