EXECUTIVE FORUM

 

Innovation: The New Route to New Wealth

BY GARY HAMEL AND PETER SKARZYNSKI

Where does new wealth come from? Like a four-year-old’s curiosity about how babies are born, it’s a deceptively direct question that often disarms our capacity to answer. To be sure, we’re ready with pat responses peppered with references to return on investment, return on net assets, and economic value added, but these measures tell us more about how revenues are rearranged than about how they’re created anew. After all, we’re not talking about market share sliced loose from a competitor or revenues boosted by an acquisitions binge—but truly new wealth: revenues from new customers buying products or services that yesterday they didn’t know they needed ...

Get Innovation: Essentials from Leader to Leader now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.