MCKINSEY STUDY ON INNOVATION

THE EIGHT ESSENTIALS OF INNOVATION, ACCORDING TO MCKINSEY

NESTLÉ

Nestlé founded Nescafé in 1938 as a way to deal with a surplus of Brazilian coffee. The company’s first major innovation came with the invention of instant coffee. But even with that, Nestlé wasn’t quite finished turning the coffee world on its head. In 1976, Eric Favre, a Swiss engineer and Nestlé employee came up with the idea for the Nespresso system. It was initially introduced to the Swiss market with disappointing results. However, using Nestlé’s resources to fight for the promising idea, it eventually revolutionized the market. Innovation, what else?Nestlé Nespresso brewing system. Photo: Nespresso

Change the company, change the world

Just because you’ve taken a job with a big company doesn’t mean you have to give up the vision to make the world a better place. On the contrary, in the corporate world, there are businesses that are creating value for society and can make an excellent place for a rewarding career based on positive social change.

“You don’t have to be either a do-gooder or a sellout; you can create rewarding careers for yourself by being really good at your day job, but also creating value for not only your company, but the society,” says Christopher White, an author and leader of the Center for Positive Organizations.

“You can create rewarding careers for yourself by being really good at your day job, but also creating value for not only your company, but the society”
Christopher White, Author and leader of the Center for Positive Organizations

Galdón agrees, pointing out that contributing ideas that create positive change often results in a win-win-win situation. Not only can corporations have a huge impact on society, but socially positive ideas can also drive positive change in a business and improve the company’s standing with employees and customers. Those creative individuals with the ideas usually resonate a lot with top management, while the best ideas are those that match with the philosophy, values, strengths and identity of the companies concerned, Galdón adds.

“Social intrapreneurship is absolutely critical for the world. Organizations cannot behave the same way as they did in the past. People increasingly want to work for and buy from firms who form a specific identity and are responsible, and social intrapreneurship is an opportunity for organizations to evolve into the type of business that is going to be successful in the future,” Galdón concludes.—

What to ask yourself before presenting an innovative idea?

Expert Christopher White lays out the four questions that social intrapreneurs should consider to increase the chances that their good idea will get accepted.

WHEN?

Is it the right time to push ahead? Sometimes having the right idea on the wrong day means your idea flops, and vice versa. Think about budget cycles, strategic changes and leadership changes that should inform the way you pitch.

WHY?

Or, in other words, how do you frame the case for change? Match the way you frame it to the company’s culture and values.

WHO?

Who do you need to get on board? Which high level supporters and the influence system around them do you need? Also, think of who will resist the idea, who has something to lose, and how to incorporate that impact into your pitch.

HOW?

How do you present your innovation as something that fits within the ways of operating? And how can you use the resources and skills of your company to best support your initiative?

NINTENDO

Nintendo began in 1889 making handmade Japanese playing cards. But in the 60s it began to set its sights beyond the card business. Between 1963 and 1968 Nintendo set up a “love hotel” chain, a taxi company, an instant noodle business and more. But it was in the broader toy and game industry where the company continued to prosper and by the 70s it launched the world’s first home video game console. More than 125 years later and Nintendo is still a market leader in the game industry.Left: Handmade Japanese playing cards made by Nintendo. Right: The Nintendo Switch console. Photo: Nintendo

BUSINESS ADMINISTRATION TAKEAWAYS

ESTABLISHED COMPANIES NEED INNOVATIVE AND ENTREPRENEURIAL IDEAS NOW MORE THAN EVER

INTRAPRENEURS HAVE A SUPPORTIVE AREA WHERE THEY CAN CARRY OUT THEIR IDEAS, AT RELATIVELY LOW PERSONAL RISK BUT WITH THE POTENTIAL FOR HUGE IMPACT

THE ENTREPRENEURIAL MINDSET MEANS ALWAYS LOOKING TOWARDS THE FUTURE AND CAN BE LEARNED

SINCE BUSINESSES HAVE SUCH A LARGE IMPACT ON SOCIETY, THEY CAN BE AN EXCELLENT STARTING PLACE FROM WHICH TO CREATE POSITIVE CHANGE

Further reading

This material has been prepared for general informational purposes only. Some information has been compiled by third party sources that we consider to be reliable. However, we do not guarantee and are not responsible for the accuracy of such. The views of third parties set out in this publication are not necessarily the views of IE University and they should be seen in the context of the time they were made.

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