Don’t Wait – Innovate

by: George Bounacos Wednesday, August 12th, 2009

: There are many mothers of invention. He led one. Don’t let fear be one of your others. Image via Wikipedia

Over eggs and The New York Times this morning, I read two stories that seem unrelated but can remind us all about operating on cruise control. The NYT business section (thanks for still having one, folks) writes about automakers citing ever-higher fuel economy ratings on new hybrid vehicles and an alliance between Microsoft and Nokia to install components of Microsoft Office software on Nokia’s phones.

Why so long to innovate?

The companies driving new technology and alliances in both cases were struggling. GM suddenly found religion at the Hybrid Altar and wants your next vehicle to get 230 mpg. Yes, 230. Do you remember them arguing about 23? Bankruptcy and a public bailout has a strange way of doing more than forcing your CEO out. Your entire business can change.

And even a year ago Microsoft was perfectly content to sell “student” copies of its Office cash cow for well over $100 and enterprise editions for many more hundreds. Google and SaaS (software as a service — the web of applications as Mike Grehan referred to it at Search Engine Strategies in San Jose yesterday) has everyone in Microsoft’s camp running scared. As well they should.

Both companies waited until faced with impending doom before pushing an innovation. Sometimes that is a smart bet. But my bet is that the American public is going to look around at the automakers and ask why hybrid technology could come to market so fast while folks were paying $4 for a gallon of gas. And when that awareness dawns, folks in Michigan are going to have some answering to do.

Frank Zappa led the Mothers of Invention. GM and Microsoft execs let cash concerns lead their innovation. I’m not sure that’s a wise strategy. What do you think?