An elusive goal for many companies is the quest for innovation. It's not merely a question of buying talent. It's frequently more about establishing a corporate culture that fosters new ideas and products even at the risk of cannibalizing its current product line. In my opinion, innovation is a quality that is sorely lacking in the U.S. EMR market today, prompting the comment that Epic sells well because its the best of a bad lot. A recent article analyzing Microsoft's lack of an innovative spirit by a former executive of innovation caught my eye (see: Microsoft’s Creative Destruction). Below is an excerpt from it:
Microsoft has become a clumsy, uncompetitive innovator. Its products are lampooned, often unfairly but sometimes with good reason. Its image has never recovered from the antitrust prosecution of the 1990s. Its marketing has been inept for years....While Apple continues to gain market share in many products, Microsoft has lost share in Web browsers, high-end laptops and smartphones....It first ignored and then stumbled in personal music players until that business was locked up by Apple. Microsoft’s huge profits — $6.7 billion for the past quarter — come almost entirely from Windows and Office programs first developed decades ago. Like G.M. with its trucks and S.U.V.’s, Microsoft can’t count on these venerable products to sustain it forever. Perhaps worst of all, Microsoft is no longer considered the cool or cutting-edge place to work. There has been a steady exit of its best and brightest. What happened? Unlike other companies, Microsoft never developed a true system for innovation. Some of my former colleagues argue that it actually developed a system to thwart innovation. Despite having one of the largest and best corporate laboratories in the world, and the luxury of not one but three chief technology officers, the company routinely manages to frustrate the efforts of its visionary thinkers.
For me, innovation within an organization results from a combination of two factors. It's critical to both recruit innovators into key positions and also develop an organizational culture that embraces innovation and change even when the early consequences of change may be disruptive and look like a setback. Recall the "S-shaped curve" that governs all early deployments of new technology (see: Can an Electronic Medical Record Cause Harm to Patients?). There is almost universally an early decrease in efficiency following such deployments because of the need for training with the new technology and the disruptive effects when previous routines and processes are changed. Getting past these early change effects allows the organization to reach the rapidly-ascending part of the curve and rapidly gain efficiency until the curve flattens out and it's time to deploy new technology again.
As noted above, having innovative thinkers in the employment of an organization is only part of the equation. Recall that such individuals are also immersed within an organizational and political context as well. Some organizations do not accept change readily, do not reward risk-taking, and foster short-term thinking and the bottom-line. Some managers, or even perhaps most of them, jealously guard their own budgets, local power, and product lines. Such managers can "frustrate the efforts of its visionary thinkers" by suppressing new ideas and products that do not enhance the success of their own units. Sometimes the only way around such impediments is to nurture new technology in a "skunk-works environment" that is separately financed but protected from political attacks by other jealous managers in the company.








