Innovation includes a mixture of insight and creativity, as well as a disciplined process that consistently promotes progress. It should be rooted in experimentation, then be adaptive and evolve over time as the external environment and internal needs change. Your strategy comprises choices on where and how to create growth and value. This is supported by a set of processes, tools and capabilities for research and product development (Source: BCG).
Matco Tools, a $450M subsidiary of Danaher, sold outdated toolboxes to auto mechanics. With the auto shop changing, their dated product was not selling. So, they redesigned and reintroduced a new toolbox that enables auto shop technology: laptops, charging systems, and organizing tools for productivity. President Tim Gilmore said, “How do you cannibalize yourself so that you’re out in front with the innovation?” (Source: Chief Executive)
Hasbro makes $4.4B in toys, everything from Monopoly board games to Star Wars paraphernalia. There is a constant flow of new items replacing old, with 75% of its products new each year! CEO Brian Goldner says, “I am re-inventing and re-imagining our brands all the time!” (Source: Chief Executive)
Apple’s iPod revenue was $5 billion. Steve Jobs cannibalized this by putting the whole MP3 player into the smart phone. Apple Music is its own entity today with that decision.
Are you willing to cannibalize existing products for innovative new ones?
