Payback: Reaping the Rewards of Innovation

Innovation is one of the biggest problems facing companies today. This book does an excellent job of analyzing innovation into various types of companies and showing several examples of successful and unsuccessful companies. The authors break innovation approaches within companies into three broad categories: 1. The Integrator - Here is where a company has a core competence and they hold the developement very close to their chest. The example they use is BMW who has a core technology in engines that they protect as much as they possibly can. Afer discussing a couple of other successes they then discuss Polaroid who attempted to move from film to digital cameras but failed. 2. The Orchestrator - where a company has the broad general idea and the ability to take a product to market but doesn't have the time, expertise, or desire to do this particular design/manufacturing job. 3. The Licensor - Some companies develop technologies that they are not going to take to market themselves. Dolby is the example they use, with technology licensed to various manufacturers. They have become the standard for audio professionals. These decisions cannot be made by accountants, they take a leader. Someone has to see the potential beyone what the sheer numbers are showing.

Filled with insights and anecdotes that really delight. Innovation is one of the toughest topics out there. So many people have written about it. Andrew and Sirkin shine a bright light on what's important...getting cash back fast, focusing your portfolio and getting to daylight. Easy to read. Well organized and fun.

Everyone who wants to make money should read this book -- CEO's, CFO's,mangers, inventers, and investers. It's a real hardball look what it takes to make innovation payoff...and why so many companies with good ideas fail. Had the authors been running a political campaign, the slogan would have been "It About the Cash Stupid!" What impressed me most about Payback is that while it's filled with high caliber business insight, it's very easy to read -- not at all like many theory-laden books written by strategy consultants. There are lots of great examples, taken from companies we all know, but not necessarily ones we've read about over and over. You learn why Polaroid failed, what makes Microsoft a great innovater -- and in neither case is the answer a good idea [or lack thereof]. This is definitely the best innovation book out there -- and one that will make a real difference to your bottom line.

Lots of books on innovation purport to be useful to managers but end up spinning stories that rarely hang together. Payback really delivers! The authors have constructed a user friendly framework that links profoundly to business outcomes (cash) and articulates a number of generic strategy choices that are supported by useful examples. The managerially oriented reader can't help but come away with practical assistance and a vocabulary which can be easily shared with their team. If you are truly interested in making innovation work in your orgainzation this will end up as a "must read"