Innovation in Silicon Valley can be found in many areas. Innovation can be found in the culture, the product, the business model, and the research and development activities. Innovation can also be located in the geographic location of the innovator. Silicon Valley is recognized as an Innovation Platform, meaning it has a highly skilled workforce that fosters innovation, technological trends, and industry-specific insights. The Valley has the most productive economy in the Western world for many reasons including the following:
No Product Organization: Innovation starts and stops at the strategic thinking process. Companies must have a continuous innovation strategy and system if they want to stay competitive. A product organization, or process for developing a new product or technology, is absolutely critical for a company to remain viable and continue to be a market leader. No product organization means no innovation. A small product organization or process for getting products out the door, does not drive the innovation required to be successful.
Creative Technologies: In the information age, businesses must use innovative ways to present and promote their services and products. In the past, many companies were content to just sell products by traditional methods. Innovation in the digital age means having creative technologies that can be deployed in a way that gets clients excited about your services or products. Many Silicon Valley companies have created groundbreaking and lucrative business models by using these innovative technologies.
Disruptive Innovation: Just as the name implies, “disruptive” innovations come about by quickly and drastically changing the market, or the landscape, of a given technological sector. There are many disruptive innovation projects going on throughout Silicon Valley. The disruption that is being described here does not happen overnight. It is a process that takes place over a period of many years. Many tech companies in Silicon Valley have adopted disruptive innovation projects that have reduced their initial investment, but have also increased their revenue at the same time. The key is for the company to adopt a plan that makes sense for their type of business.
Continuous Innovation: This is another component of the disruptive innovation mindset. Companies must have a constant stream of new ideas and technology to stay ahead of competitors. It is critical for a company’s mindset to have a constant stream of new ideas and new technology to apply to their business model. Companies that are able to adapt to changes, and then apply those changes are rewarded with continued success. There is no better way to apply disruptive innovation to the business model than to apply it consistently.
Innovation Processes: When considering whether or not a particular company should be considered a leader in the tech industry, they must first determine what types of innovation processes are necessary for them to develop new ideas. There are many examples of what these processes look like. Many startup companies are able to identify problem solving opportunities through the process of trial and error. Additionally, these types of companies often look for opportunities in technology that they can apply to their business model and create a successful innovation process.
Disruptive Innovation: The final element of the entrepreneurial mindset is disruption. Many businesses like to think of themselves as being on a constant state of innovation. However, some companies like to think of their state of innovation as being “just getting started”. In many instances, the innovation process occurs very quickly and once completed, the company is done. Other companies like to think of their business models as being “innovative living” and continuously looking for ways to improve upon their current business models.
In conclusion, every large tech firm has undergone some type of disruption in their market structure. The key to becoming a leader in innovation is to embrace the disruptive innovation mentality. Companies like Apple, who were great at disrupting their market, have been able to build a company that was nothing more than a brand, but have been transformed into a powerhouse tech company. If you are seeking leadership in innovation then this is one area that you must address. Every large tech company in every industry will face significant innovation competition over the coming years and it is an area that every company with a strong belief in its mission should work hard to win.