Failure is the mother of innovation, says Baba Shiv, a professor at Stanford Graduate School of Business whose research focuses on innovation in the workplace. Only through a large amount of repetition of experimentation and failure, meaningful innovation can be discovered. When a failure results, it also provides valuable information concluded from the error. Since there are hundreds or even more pathways leading to an appropriate solution, more trails and errors being analyzed can create greater possibilities of successful innovation.
Linking to the class of Entrepreneurship and innovation we had, innovation is a key factor and step during the process of entrepreneurship; no matter founder of start-up, joining early stage company, or intra-preneur, innovation is with no doubt necessary for developing of system or organization, acquiring customers, competing in the outer market, as well as obtaining sustainable growth and performance. Therefore, corporate leaders ought to be willing to see failures while targeting and getting closer to innovation, especially during the early stage, and treat failures as something normal and necessary rather be afraid of them and tend to avoid any. Again, it is all because that failure is the mother of innovation. An optimistic attitude is important to overcome the fear of failure. As Shiv categorized, there are two types of mindset: one is that perceives failures as exciting because of the opportunities it presents; the other is that the challenge is to keep experimenting and learning until getting what indeed works. No matter which mindset is chosen, being willing to make use of lessons learned from failure in succeeding operation of the firm is required for thriving entrepreneurship.
When supporting one’s opinion, data is always the most persuasive proof. Meanwhile, proper experiments are the unavoidable way to get reasonable and reliable data. Shiv suggests that products or services are being tested on average customers instead of knowledgeable customers or early adopters. Also, a greater weight should be given of subordinates rather than leaders because they give more useful information but not instincts. A cultural of innovation of encouraged at all levels. The more appropriate the experimentation, the data-collecting step, is done, the deeper opinions and the further boarder improvements can be supported.
How much risk should be taken? It has to be do with the current performance of the company. Public companies that are facing growing short-term pressure from stock prices and unpaid dividends better focus on small innovations while huge companies with high reputation, on the other hand, can take higher risk and reward.
I found this blog interesting and useful because it is related to class content and further explains what should and should not do about innovation and entrepreneurship.
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embedded link from an external blog:
https://www.gsb.stanford.edu/insights/baba-shiv-failure-mother-innovation
reference list:
- @stanfordbiz. “Baba Shiv: Failure Is the Mother of Innovation.” Stanford Graduate School of Business. N.p., n.d. Web. 12 Nov. 2016. <https://www.gsb.stanford.edu/insights/baba-shiv-failure-mother-innovation>
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Administrator. “Fuel Innovation Will Inspiring Corporate Entrepreneurship.” The Parables of Business. N.p., 15 July 2015. Web. 13 Nov. 2016. <http://www.theparablesofbusiness.com/inspiring-corporate-entrepreneurship-to-fuel-innovation>
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Bergen, Mark. “Google Creating Alphabet Inc Is an Experiment That Misses One Key Goal — Keeping Its Executives.” Financial Post. N.p., 26 Oct. 2016. Web. 13 Nov. 2016. <http://business.financialpost.com/fp-tech-desk/google-creating-alphabet-inc-is-an-experiment-that-misses-one-key-goal-keeping-its-executives?__lsa=15c4-fe71>