Silicon Valley Innovation, the Innovation Methodology that has made Silicon Valley an Innovation leader
Business Current State
Lack of Innovation Methodologies is holding Businesses back. Innovation is a powerful way forward and every business can do it. Toyota innovates at a rate of about one idea a month by everyone in the company and in the direction of a business goal. Silicon Valley is where they are today because it exists In a sea of open minds and innovation.
However Innovation requires a methodology and if you don’t know that methodology, you won’t be able to effectively use Innovation. Therefore by leaving Innovation behind leaves an opportunity for your competitors to march ahead of you.
Business Final State
The Toyota Production System methodology of innovation has some stringent requirements for implementation. That is to say, it is a complete program. Subsequently, the Silicon Valley methodology has a few implicit requirements and is quickly implemented. Companies that have an Innovation Pipeline are in a different category. These companies use Innovation as a competitive differentiator.
There are two powerful methods of Innovation out there. Toyota’s Continuous Improvement Program and the Silicon Valley Innovation methodology. The Silicon Valley Innovation methods are required to secure Venture Capital Funding.
Build – Measure – Learn is the Innovation Methodology and Minimum Viable Product (MVP) is the starting point for the progression to excellence. Whether your website is not generating enough dopamine to your viewers or you are rolling out a new product. Venture Capitalists will not fund a startup unless they use this Innovation methodology.
A Silicon Valley Innovation Methodology Example
Firstly a church wanted to start a school however they were low on funds. By using the concept of the Innovation methodology, MVP started with parishioners that were already home teaching. Consequently, by bringing in these students they could start collecting the state student fee. This Innovation Methodology supported the build-up funds that allowed them to start purchasing textbooks and supplies for K-8. This allowed them to decrease risk and create a logical plan. Once they had the supplies, facilities, and first instructors, they could start K-8. Next, they would either expand K-8 or maybe even start a High School. This is the power of using a tested Innovation Program utilizing the MVP concept.
Treacy and Wiersema wrote a seminal book on great companies. They found that excellent companies focused their business in one of three areas: Operational Excellence, Customer Intimacy, or Innovation. The really great companies focused on two or three areas. Southwest Airlines focuses on Operational Excellence and also on Customer Intimacy. Apple uses Innovation and they also excel in Customer Intimacy.