{"id":8423,"date":"2020-05-26T09:01:03","date_gmt":"2020-05-26T16:01:03","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=8423"},"modified":"2020-05-26T09:01:03","modified_gmt":"2020-05-26T16:01:03","slug":"innovation-budgets-resource-constraints-and-fallacies","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2020\/05\/innovation-budgets-resource-constraints-and-fallacies","title":{"rendered":"Innovation Budgets, Resource Constraints and Fallacies"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”8424″ img_size=”full”][vc_column_text]\u201cOne of the banes of successful innovation is that companies may be so committed to innovation that they will give the innovators a lot of money to spend.\u201d \u2013 <\/span><\/i>Clayton M. Christensen<\/span><\/i><\/a>, academic and business consultant<\/span><\/i><\/p>\n

\u201cThere\u2019s nothing efficient about innovation.\u201d \u2013 <\/span><\/i>Simon Sinek<\/span><\/i><\/a>, author and motivational speaker<\/span><\/i><\/p>\n

\u201cI think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.\u201d \u2013 <\/span><\/i>Jeff Bezos<\/span><\/i><\/a>, Amazon.com founder, CEO and president<\/span><\/i><\/p>\n

Three smart modern thinkers. One thinks money gets in the way of innovation; the second thinks innovation is messy and inefficient\u2014which almost by definition means money; the third thinks keeping a tight rein on innovation budgets is the best way to achieve results. So, who is right?<\/span><\/p>\n

Surprisingly, they all are.\u00a0<\/span><\/p>\n

The Fallacy of Unlimited Budget and Resources<\/span><\/h2>\n

Christensen\u2019s concern that companies will throw money at innovation cautions against extravagant budgets that allow those charged with innovation to waste resources. Want a new piece of equipment? Go ahead. There\u2019s plenty of money. Then spend time playing with\u2014er, I mean\u2014learning how to use it. Well, if it didn\u2019t do the trick, let\u2019s buy the next big thing.\u00a0<\/span><\/p>\n

It\u2019s easy to spend time wastefully when you have money to burn and spending without discipline will not result in <\/span>innovation<\/span><\/a>.<\/span><\/p>\n

The Fallacy of \u2018Just Try It\u2019, Innovating by Trial and Error<\/span><\/h2>\n

On the other hand, Sinek\u2019s assertion that innovation is inefficient clearly supports the idea that innovation requires trial and error, going down a few dead-end roads and spending a lot of time checking out the \u201cWhat if\u2026\u201d ideas. Even Thomas Edison supported the idea that innovation required trying alternatives until you finally hit on the one that works.<\/span><\/p>\n

Time and resources equate to money, so trial and error can be an expensive route to <\/span>foster innovation in the workplace<\/span><\/a>, which may require the occasional purchase of new equipment, new materials, new software or new toys. But again, innovation without discipline is inefficient and perhaps even ineffective.<\/span><\/p>\n

The Fallacy that Constraints Inhibit Innovation<\/span><\/h2>\n

Innovation is often seen as somewhat of a free-for-all, with the need to try anything and everything and to roam the bounds of what is possible until one stumbles onto the next big thing. But what if Bezos is right, and we\u2019ve been going about it all wrong?<\/span><\/p>\n

Bezos\u2019 assertion that the best way to get out of a box is to innovate your way out, which at first seems like an <\/span>unconventional and restrictive method to innovate<\/span><\/a>, but it may be the most middle-of-the-road approach. He\u2019s not saying spend money; he\u2019s not saying don\u2019t spend money. What he is saying is to define your constraints, whatever they may be. Then innovate to overcome them.<\/span><\/p>\n

Constraints are the Roadmap for Innovation<\/span><\/h2>\n

Constraints function as the roadmap for innovation. Whether that constraint takes the form of size, shape, weight, functionality, power consumption or any other characteristic, once it has been defined, the innovator knows the trail to follow.<\/span><\/p>\n

When it comes to funding innovation resources, it\u2019s easy to justify spending or using or hiring or turning to any other resource in terms of addressing the constraint, whatever it might be. If the asked-for resource can\u2019t be justified by the value of overcoming the constraint, then the resource is not necessary. Clean and simple.<\/span><\/p>\n

Perhaps the best way to innovate is to solve a specific problem with specific resources. Kind of like the <\/span>Apollo 13 space mission<\/span><\/a> in 1970. When things went wrong two days into the mission, astronaut Jim Lovell and his crew had to ask themselves, \u201cWhat tools do we have to solve the problem?\u201d With their almost unimaginable constraints, and facing a life-or-death situation, the crew and engineers back on earth had to innovate a viable solution.\u00a0<\/span><\/p>\n

For your next innovation project, consider starting with the constraints. You may find that they become the roadmap to innovation, leading you to your next big idea and the next <\/span>industry-disrupting innovation<\/span><\/a>.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_single_image image=”8424″ img_size=”full”][vc_column_text]\u201cOne of the banes of successful innovation is that companies may be so committed to innovation that they will give the innovators a lot of money to spend.\u201d \u2013 Clayton M. Christensen, academic and business consultant \u201cThere\u2019s nothing efficient about innovation.\u201d \u2013 Simon Sinek, author and motivational speaker \u201cI think frugality drives innovation, […]<\/p>\n","protected":false},"author":56,"featured_media":8424,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,197],"tags":[1215,894,1216,245,1217,1219,924,1218],"class_list":["post-8423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-innovation-and-technology","tag-budgets","tag-clayton-christensen","tag-constraints","tag-innovation","tag-jeff-bezos","tag-resources","tag-results","tag-simon-sinek"],"yoast_head":"\nInnovation Budgets, Resource Constraints and Fallacies | QAD Blog<\/title>\n<meta name=\"description\" content=\"Clayton Christensen, Simon Sinek & Jeff Bezos have varying approaches to innovation. 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