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Earlier this month, IBM gathered hundreds of the world’s leading thinkers from across business, industry, government and academia, and brought them together for two days of discussion about innovation and the challenges facing businesses in the 21st century.
The 2006 Business Leadership Forum, the fourth such event hosted by IBM, took place in Rome, Italy. IBM Chairman and CEO Sam Palmisano welcomed leaders representing more than 50 countries, setting the tone for the event early in his opening remarks.
"The bottom line of all this is that innovation is really a 'must do' unless we want to live in an environment that's commoditized and not unique, not differentiated," Palmisano said. “And that's acceptable, but you're in a model of constantly taking out costs, fighting for scraps of pennies in a very crowded marketplace.”
Palmisano's remarks reinforced the attendees' agreement about the urgency of innovation for success in today's global economy. Over the next two days, a diverse set of speakers – from organizations including BP, Matsushita Electronics, the Agricultural Bank of China, Bharti Enterprises, and the government of Austria, among others – discussed varying approaches to and definitions of innovation and how to achieve it.
Among the key insights delivered by speakers and panelists during the conference:
 | Innovation is essential. Globalization is inevitable. Ubiquitous connectivity is breaking down physical borders and creating connections between people, economies, organizations and governments in ways that were never thought possible. |
| It's about being unique. In this age where competition for talent and brand share is critical, businesses need to cultivate their uniqueness. They need to encourage an environment that allows people to be open, to be multi-disciplined, to be collaborative, and to be global in their thought process. |
| The speed of change is much faster — and more disruptive — than seen before. The goal amidst all this change is to find value in the marketplace. Whether it's innovation for money or whether it's innovation for business, society or for governments, the binding force in the end is trying to see the problem differently, to find new value quicker than anyone else. This is what the 21st century is all about — and it’s all just beginning. |
| CEOs must pay attention to the implications of change among employees. Done incorrectly, change can create fear and uncertainty within organizations. Unless it is properly managed, too much change can be a great disaster for companies. CEOs and leaders must establish a course, a plot and/or a purpose to lead their people. Constant reorganization is futile. Instead, leaders must look at a company’s structure strategically, consider which pieces need to shift and then unfold change bit by bit. |
| Technology plays a leading role in innovation, but it isn't the only factor. What were once disruptive technologies now are commodities. Technology can be the establishing base for innovation, but people are the ones that drive it forward. Technology is really only the mechanics of the process. Real innovation is about great people generating and then implementing new ideas. |
| To innovate, CEOs don’t need to control all the resources or build within their own frameworks. Partner and collaborate, then disband and go back to doing whatever a the individuals’ strengths are. CEOs aren’t limited to using their own staff or resources. They have to identify the problem and deploy the right people against it over a period of time, partnering with other institutions to get the 'right people' if necessary. |
| Governments can help spur innovation among the private sector. Governments must be more flexible to respond to today's business needs. Entrepreneurship creates jobs, and it turns inventions into innovation. Older governments may try to defend and preserve what has been achieved in the past, but if they rely only on the strength of their past, they put advancement in peril. Governments need to open themselves to market and labor reforms to stay relevant and competitive in this global age. |
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In spite of the diverse backgrounds, experiences, and approaches of the conference’s attendees, the central theme of the 2006 IBM Business Leadership Forum was clear and unequivocal: Now is a great time to be an innovator; organizations merely need the willingness to do so, have the courage to fail, and a vision to execute against.
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