Innovation and Business Success

Innovation is one of those terms that consultants and business journalists throw around with abandon. It seems to have a magic property that starts revolutionary organizations and transforms mundane companies into market leaders.  There are countless books, seminars, web sites, and advisors holding out the promise of growth and success if companies can become innovative with their products or in their markets. 

Unfortunately, innovation will not lead to business success without focused execution, and a market ready for the new and improved product or service. 

Today, there are countless organizations developing innovative products, processes, and business models, but they languish because of poor planning, a lack of resources, and/or a market not ready, or willing to buy the product or service.   It’s scary to think how many great ideas have been squashed by the economic meltdown we have been experiencing.  The people that put on the seminars may disagree, but great ideas will not ensure commercial success.  It is people, processes, resources, and a willing market - combined with a great idea - that will bring commercial success.

I was reminded of this fact this past weekend while attending the Auburn Cord Duesenberg Festival in Auburn, Indiana.  Errett Lobban “E. L.” Cord was one of the most fascinating industrialists of the 20th century.  He founded the Cord Corporation in 1929 as a holding company for over 150 companies he controlled, including the Auburn Automobile Company, which built the Auburn, Cord and Duesenberg Automobiles.  

Cord’s greatest legacy may be for the brief two year run of the Cord 810/812 in 1936 and 1937.  Today it is considered one of the most beautiful and innovative cars ever built and those that remain are treasured around the world.  It introduced many technical innovations considered commonplace today.  Unfortunately, because of a lack of money and a time constraint to show the car at the 1935 New York Auto Show, the car was rushed into production and suffered numerous mechanical difficulties.  (Classic car restorers have fixed the flaws in most of the remaining  cars and many now run better than when they came out of the factory).  The car was wildly popular with the show-going public and the press, but in the end, a lack of execution and a leery market conspired against the success of the Cord.  Production of the amazing Cord ceased after just 2 years and only about 3,000 were produced.

The lesson: as the economy slowly recovers and businesses get back to innovating, it’s important to not get caught up in all the hype.  In the end, it’s not just innovation that leads to success – it’s great execution and a market that will pay for what you are selling.