What's the Secret to Effective Innovation?

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July 28 (Bloomberg) -- Larry Keeley, president and co-founder of Doblin Group, discusses the secret to effective innovation with Cory Johnson on "Taking Stock." (Source: Bloomberg)

About ways to innovate.

I love this, because i do our technology show on the west coast, "bloomberg west." people think innovation means a lot.

I do not even know what it means.

What does it mean?

Innovation is the creation of a viable new business concept.

Every one of those words matters.

Most people are not precise about it.

For it to be viable means it has to return the cost of capital.

The coolest thing we do for -- the cruelest thing we do for smart people is put them in a room and tell them to innovate and never teach them how.

That is the standard.

It is a good starting place.

I worked with a magazine editor who really put a lot of time into installing the tools of creativity.

Which was usually sitting around a circular table and drawing ideas, honing them over and over and over again.

Is there a difference between creativity and innovation?

Massive difference.

Here is what happened in the room where you're sitting.

The individuals that a lot of talent.

I was there, too.

We have to make certain exceptions, cory.

Most people conflate innovation and creativity.

They think they are the same thing.

They are wildly different.

The difference between people who routinely and reliably innovate and the people who occasionally get lightning to strike are the people who look at it this way, say it is all about enhancing our creativity.

The other say, no, it is about discipline.

The discipline of taking an idea and implementing it?

I am using your hand signals now.

All of those things.

How do we develop these ideas for how human beings are going to do things in their lives.

How the we overcome the -- how do we overcome the obstacles?

Have we figured out the little things like the fact that most innovations are increasingly about the elegance integration of many things, not the invention of one thing.

I want to talk about the notion of apple as an innovative company.

It is clearly not.

The management structure is didactic.

There is one guy who told everyone else what to do.

To me that is not where innovation comes from most of the time.

I suspect inside apple, things are different.

There are things apple does really, really well.

One thing steve personally did was he said no to a vast amount of instructions.

That is another form of discipline.

I was myself brought him a billion dollar idea.

I got most of the way through the second sentence before he said no.

I said, excuse me.

He said, strategy is choosing.

I say no.

I said, i do not have any trouble hearing.

I wonder if you could give me a reason why you said no?

That was something i respected him for.

The ability to say no to things that were rate ideas, but not part of what he was trying to achieve now.

Is it possible for a company that does not value innovation at its core to become innovative?

I think that is something that people in business love, the notion that they can get close to innovation.

It is quite possible today for companies to become good at innovation if they set in motion the right kind of journey.

If they think about it as the construction of confidence, not the creation of a culture.

I get a call at least once every 10 years from some ceo somewhere in the world who says, we do not have a culture of innovation.

Can you help us?

And my stock answer is, lie down and still the feeling goes away.

It is like plumbing.

If you do the right things in the right sequence, anyone can be good at innovation.

Waterpik -- what are pitfalls that people commonly encounter?

Thinking you will end at some breakthrough products.

There are so many little things you have to get right.

There are about 20 major myth that are always getting in your way.

Are there some companies that cannot be or should not be innovative?

Sure.

Innovation is not for everybody.

There are hundreds of thousands of companies.

If you and i were running a dry cleaner on the corner, the amount of innovation we need is not very much.

Most of that is about execution.

A relatively small number of companies have to be graded innovation, not necessarily everybody.

For all of us to say we all need to be innovative now is an overreach.

It is impractical, unnecessary, and a waste.

There has been criticism about the innovator's dilemma.

What is your take away from that argument?

I am sure you're up to speed on that.

It is one of my favorites.

The innovator's dilemma is an old one, the idea that if you focus on your most difficult customers, it distracts you.

That is the heart of what clay christiansen's research discovered 15 years ago.

Great research.

He is a great guy.

The important thing is for all of us to be insensibly curious about how we will be relevant to people today.

That is a universal message and

This text has been automatically generated. It may not be 100% accurate.

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