Innovation in the Top Spot

We recently wrote about the role of product innovation in brand differentiation, particularly in competing for today’s increasingly  sparse disposable dollar.  Recognizing this reality, Businessweek reports that Honda has appointed Tokanobu Ito, a veteran engineer and head of R&D, to the top spot of president and chief executive officer.

Brands like Apple and Research in Motion (makers of the Blackberry) have experienced success  by merging the business/R&D disciplines into its top posts – Steve Jobs’ involvement in Apple’s product design is well publicized, and RIM’s co-CEO and founder Mike Lazaridis is an engineer.  Both companies have seen their financial performance increase during 2009.

Honda’s appointment, as well as Apple and RIM’s business results, demonstrate how some forward-thinking companies can succeed by making innovation not only a priority, but part of their corporate culture.  By tasking those in the top spots with delivering both innovation and financial results, these companies recognize that these two notions are interdependent.  We hope to continue to see more companies taking their lead.