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.
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Thanks for this post. I might add that companies need to see innovation as part of a solution to any economic troubles that they may be having. Businesses may think that it’s smarter to spend their money on immediate survival, but innovation can help a business now, and give them legs to stand on in the future.
July 29th, 2009 at 12:05 am
Thanks, Paloma. For far too long the person in charge of company strategy [CEO] and the person driving company innovation [CIO] have been headed in different directions, using different metrics, even different language.
Making the CEO and CIO one person is one way to bridge the divide between the two camps.
Our CEO recently posted a provocative video on exactly this topic and offered another prediction for closing that gap and increasing success for every innovation project.
Check it out on YouTube: http://www.youtube.com/watch?v=V-RsLP5XXbE&feature=channel_page
Thanks.
July 31st, 2009 at 1:20 pm