When ideas meet and information comes together, you bring innovations to market smarter and faster.
A diversity of ideas and opinions are needed to generate high quality solutions.
Innovation, the source of sustainable competitive advantage for most companies, depends upon the individual and collective expertise of employees. In the new era of systemic innovation, it is more important for an organization to be cross-functionally excellent than functionally excellent. In addition to formal planning at the business level, best-practice companies use crosscutting initiatives on major issues in order to challenge assumptions and open up the organization to new thinking.
Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing, and customer relationships. To lead these expertise development efforts, cross-functional teams, either formal or informal, need to be formed. These teams can also find new businesses in white spaces between existing business units
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1 comment:
Although, i have little to disagree with your highly profound article, I wish to add upon it a little I possess.
You talked about innovations. I was amazed to find out the pay offs of Research & Development by a some specific companies during recession period 2000-2002, the data of which I'll provide below. but before it, I wish also to mention that invention and entrepreneurship are not the same. Entrepreneurs do more than thinking about new ideas. These cross-functional do this thing: by 'forming enterprises and marshaling resources to address them' they create value and serve the communities.
Now about the R&D spending and payoffs, allow me to quote BusinessWeek.
The Rewards of Research
"The 177 companies with market values over $100 million that hiked R&D in the 2001-2002 downturn later outpaced the broader markets.
One year later, the profit increase for big R&D spenders, 51%
3 Years later, 88%
and, 5 years later, 136%"
There is a great lesson in this. Isn't rejoicing that R&D is very practical and stretching one's imagination is no more unprofitable, to satisfy lousy heads?
Humble regards!
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