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Amid mounting concern over the loss of jobs to low-wage economies, one fact is clear: America's prosperity hinges on the ability of its businesses to continually introduce new products and services. But what makes for a creative economy? How can the remarkable surge of innovation that fueled the boom of the 1990s be sustained?
For an answer, Richard K. Lester and Michael J. Piore examine innovation strategies in some of the economy's most dynamic sectors. Through eye-opening case studies of new product development in fields such as cell phones, medical devices, and blue jeans, two fundamental processes emerge.
One of these processes, analysis--rational problem solving--dominates management and engineering practice. The other, interpretation, is not widely understood, or even recognized--although, as the authors make clear, it is absolutely crucial to innovation. Unlike problem solving, interpretation embraces and exploits ambiguity, the wellspring of creativity in the economy. By emphasizing interpretation, and showing how these two radically different processes can be combined, Lester and Piore's book gives managers and designers the concepts and tools to keep new products flowing.
But the authors also offer an unsettling critique of national policy. By ignoring the role of interpretation, economic policymakers are drawing the wrong lessons from the 1990s boom. The current emphasis on expanding the reach of market competition will help the analytical processes needed to implement innovation. But if unchecked it risks choking off the economy's vital interpretive spaces. Unless a more balanced policy approach is adopted, warn Lester and Piore, America's capacity to innovate--its greatest economic asset--will erode.
- Sales Rank: #519257 in Books
- Brand: Brand: Harvard University Press
- Published on: 2006-04-15
- Released on: 2006-03-20
- Original language: English
- Number of items: 1
- Dimensions: 8.25" h x .69" w x 5.00" l, .62 pounds
- Binding: Paperback
- 240 pages
Features
- Used Book in Good Condition
Review
Lester and Piore tell us that a corporate focus on core competencies will not suffice to make a brand irreplaceable and thus earn a ticket to prolonged life. Indeed great brands don't just fall from the sky, they have to be built through the carefully assembled blocks of innovation. The authors lead us to the conclusion that you have to go beyond just listening to the customer, you have to observe them and anticipate what they themselves never imagined they would want. (Patrick le Qu�ment, Chief Designer, Renault)
Innovation-The Missing Dimension does have a central focus, but it is such a broad-ranging coverage of the important subject of innovation that it actually adds many dimensions to the reader's thinking. A worthwhile experience. (Robert W. Galvin, Former CEO, Motorola)
Finally, a book that blows past the one-size-fits-all answers of politicians and business pundits. Innovation-The Missing Dimension sets the standard for understanding how to compete in a global economy. (Bob Buderi, Editor at Large, Technology Review, and author of Engines of Tomorrow)
It is pretty clear that the future of a leading-edge economy now rests on its capacity to innovate. It is not at all clear what institutions and practices particularly favor innovation. Building on a few closely observed case studies, Lester and Piore arrive at some interesting, plausible and, well, innovative ideas about the way new products and processes come into existence and sometimes flourish. Their ideas have novel and significant implications for teaching, management and governance. (Robert M. Solow, Nobel Laureate in Economics)
This book brings new insight into innovation--where it begins and how it can be introduced and managed. The authors' original and thought-provoking prescriptions reach far beyond the world of business. They explain how education must demonstrate and play a major role in innovation. (Governor Gaston Caperton, President, The College Board)
While innovation is typically seen as a single process, Lester and Piore break it into two parts: problem solving and interpretation. Companies focus constantly on the former, which tends to be a rational step-by-step process. If they talk about the latter at all, it is under the guise of 'listening to the customer,' a less well-defined discipline. Much of the book is devoted to case studies of product development in fields ranging from cellphones to medical equipment to bluejeans. (Robert Weisman Boston Globe 2004-11-05)
From 1994 to 2002, almost in parallel with the Internet-led boom in the U.S. economy, researchers at the Industrial Performance Center at MIT developed a series of case studies of technology-oriented companies. These studies allowed the authors of the current book to identify common patterns in the innovation process. What the authors found was startlingly simple: innovation was a function of two basic processes--analysis and interpretation. While there are numerous books on the topic of innovation, this volume's real value is its exposition of the two processes and the illustration of these processes through exhaustive case studies...Innovation is absolutely critical to the economic well-being of the U.S. and is the only bulwark against the migration of jobs overseas. The authors make these points tellingly, using persuasive arguments that illustrate the innovation processes in organizations. (R. Subramanian Choice 2005-03-01)
This is an interesting and stimulating book. It argues that innovation studies have so far neglected an important dimension of the innovative process, which the authors call the interpretive dimension. This refers to managers' capability of bringing together people of different backgrounds (e.g., engineers, product designers, advanced users), engage them in constructive discussions about new products, manage the confusion and ambiguity that may inevitably arise in the interactions between heterogenous agents, interpret such ambiguity, and eventually point to new technological trajectories that the innovative process should lead to...Richard Lester and Michael Piore develop this interesting argument by describing the results of three case studies on innovation and product design in rather different industries...The basic argument developed in this book is original, and it challenges the dominant perspective on innovation management and policy. (Fulvio Castellacci Journal of Economic Issues)
About the Author
Richard K. Lester is Director of the Industrial Performance Center and Professor of Nuclear Engineering at the Massachusetts Institute of Technology (MIT).
Michael J. Piore is David W. Skinner Professor of Economics and Management at the Massachusetts Institute of Technology. He is the author of several books, including, with Charles F. Sabel, The Second Industrial Divide.
Most helpful customer reviews
1 of 1 people found the following review helpful.
Great book on overseen factors behind innovation
By Ulas Tuerkmen
Innovative ideas need space to germinate, grow, and develop into
complete products. The nature of this space, how it can be created,
and how to steer it are the topics of this book. The authors base
their arguments on studies of companies from various industries that
were either introducing new products to markets where they had no
foothold, or trying to stay ahead of the competition by continuous
innovation. It is very interesting to see how seemingly disparate
industries such as fashion, medical imaging or home lighting face
similar issues when they have to connect different departments within
the same organization or interface with other companies for
information exchange. While Motorola has to balance the gung ho
attitude of radio operators with the more reliability-oriented approach
of telephone network operators, Levi's has to cooperate with stone
washing laundries and share techniques that differentiates them from
the other jean manufacturers.
The authors point out that the way product and manufacturing design is
formulated and studied in the literature and in companies is through
the problem-solving perspective. Design is treated as a problem to be
solved, whereby an analysis is performed to split the problem into
parts, which are then delegated to people with suitable expertise. The
specific insight of the authors is that the analytic approach is
neither accurate, in that it's not what really happens, nor
preferrable if innovation is to be a focus. It's not accurate, because
there is something preceding the analysis step. As one executive
remarks, "by the time I see the parts, I already have the
answer". That is, for a solution to be formed and split into parts,
the exact problem has to be formulated, and this is a very difficult
and specific task on itself. The analytic approach is also not
preferrable if innovation is at stake, because the ideal problem
solving approach is one of taking the shortest distance to the goal
within certain constraints. Innovation, however, requires a
speculative, open-ended process that serves as a precursor to the
analytic episode. During this process, there is radical uncertainty,
meaning that not even the possible outcomes are known, and there is a
lot of experimenting and trial-and-error involved ("You have to kiss a
lot of frogs"). According to the authors, the distinctive component of
this seemingly chaotic phase is interpretation. Interpretation is the
counterpart to analysis, and is charactized by a vague target,
open-ended conversations, and fluid borders.
If analysis is possible with the problem-solving approach, what is the
basic process that enables interpretation? The answer is the above
mentioned conversation, but not within the strict information-exchange
view in which communication is seen in the analytical perspective. If
it is to lead to new insights, and serve as a basis for innovation,
conversation has to be open-ended, include people and organizations
with different backgrounds and perspectives, and not shy away from
ambiguity. Management usually aims to remove all ambiguity from
communication within a company, but for the purposes of
interpretation, the ambiguity that is familiar to us all from our
daily use of language is actually crucial. It is the critical resource
out of which ideas emerge, because ambiguity leads to the participants
inquiring each other about their standpoints, and make new discoveries
about each other and about the object they are organizing around.
The rest of the book is dedicated to understanding the analysis vs
interpretation divide, how companies can create and sustain
conversations to alternate between these, and case studies of
successful and collapsed conversations. The authors compare the role
of the manager in a company that wants to sustain conversions to the
host of a cocktail party, who has to supply the right participants and
environment for conversations, make sure that the conversation does
not get bogged down in bargaining, and rekindle it when it threatens
to die off. One interesting connection made by the authors is how
conversations in the early phase are threatened by the existing
customers of a company, reminiscient of the innovator's dilemma. The
end result of a conversation is not, as a simple extrapolation would
make one believe, a product or a problem to solve; it is a language
community. One of the most interesting and surprising aspects of this
book is the affinity to the developments that were then current in
Cognitive Science (especially Cognitive Linguistics) evidenced by this
characterization. The authors compare the people who develop a common
language after taking part in a conversation for a prolonged period of
time with communities that develop a language of their own, going from
a pidgin to a creole, and characterize them as a language community.
The most relevant property of such a community is that they have
created a space where ambiguity can be recognized as such, but does
not have to be feared. It is rather recognized as a possibility for
interpretation. They further reference the category theory of Lakoff,
who argued against strict category membership, and inherent vagueness
in the linguistic usage of category terms.
The book goes deeper into the relationship of companies to two other
settings that are accepted to be interpretive communities. The first
of these is industrial districts, such as Silicon Valley or the Veneto
region of Italy, famous for its clothing manufacturers, out of which
Benetton emerged as the leader. Although these districts provide the
interpretive communities for whole industries through the knowdledge
and labor that flows between the smaller companies, they are under
pressure from the leaders who make use of these resources, but
contribute little in return. There is a similar relationship between
universities and the industry, especially in the US. Universities are
singular in how they combine analytic and interpretive communities.
They offer the chance for intense occupation with very specific
problems, but also a public arena for chance encounters, open
discussions, and intense social interactions. In this sense, they are
one of the most important locusts for interpretive communities.
Recently, universities have come under financial pressure, thus
reaching for more industry collaboration, and companies are eager to
offload their research to universities. There is a very clear conflict
in the fundamental driving forces of these two spheres, however:
Universities function under the principles of openness and peer
recognition, whereas businesses follow financial incentives. The
authors discuss the various facets of this conflict on concrete cases,
but refrain from proposing simplistic solutions.
Of particular significance for me was the connection the authors made
to the software development context. I think the authors have
recognized the idiosyncracies of software development, and the
exceptional relevancy they present for the book, rather well. Software
is even more difficult to break apart analytically and reassamble than
manufacturing. The pieces interact with one another in unpredictable
ways due to the inherent complexity and brittleness of software
components. Furthermore, one cannot just throw people at a problem
(the notorious 'mythical man-month'), because if they don't belong to
the same "language community", i.e. don't have the same way of
conceptualizing computational problems, the results of their work will
be incompatible. In this respect, as the authors state, "Software is
emblematic because it defies the model of the division of labor that
lies at the heart of mass production and the analytical approach to
product design". The solutions software developers have found to these
challenges are also vindications of the importance the authors
attribute to interpretive communities. Before they were mentioned in
the book, it was obvious to me that the online-first communities that
form around various open source software technologies (languages,
operating systems, programs) are a great example of interpretive
communities. As the authors point out, these communities lead intense
online discussions on how to write software, and the importance of
perfecting the craft of programming. The second software process that
goes in the direction of interpretive communities are agile
approaches. These have arisen as a counter-argument to the analytic,
component-oriented software development methodologies, and have always
argued for independent, self-organizing teams that work on increments
to systems that are always in a running, complete state, even if
diminished in terms of features. Agile approaches furthermore
encourage focusing on communication and cooperation, rather than
documentation and strict processes.
This book is a fresh alternative to all the process-oriented books
that teach well-defined methods that are promised to make your
organization successful, but end up creating another shell. I hope it
moves at least a few managers to provoking conversations among their
workers, and taking the end results seriously.
0 of 1 people found the following review helpful.
Five Stars
By Amazon Customer
Great book- relevant to any contemporary business.
0 of 2 people found the following review helpful.
Three Stars
By Kitty Like
Interesting book for school
See all 5 customer reviews...
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