INSEAD: Can you briefly describe your book and its main objectives?

David Midgley: It is not like most business books, in that it does not contain a single idea or focus on a single discipline or business function. My goal was to put the essentials of innovation management into one book. And by essentials I mean frameworks and tools solidly based in research and best practice, which managers can apply in their companies if not tomorrow, then soon.

The first objective of the book is to provide an integrated and practical approach to managing innovation. The second objective relates to the fact that innovation has changed over the last decade; it is now less about value from new products and more about value from new services and new business models. So I also wanted to adapt what we know to the new world of innovation.

INSEAD: What kind of audience does it appeal to?

DM: Managers and executives. It is squarely aimed at the typical manager in the typical large company. Indeed, part of my motivation for writing it is the evident thirst the managers I meet through executive education have for tools they can apply in their firms and knowledge that transcends functional silos or business school disciplines. Most want general management frameworks and the accompanying tools to implement them. This is what I try to provide in the Innovation Manual.

INSEAD: How does your book compare to other books on the market about innovation?

DM: That is a difficult question because I believe there are over 10,000 books on innovation and I can't confess to have read them all! However, there are relatively few 'manuals' for innovation and even fewer books that include tools as well as conceptual frameworks. Moreover, I believe my book is based on a sound framework for how customers adopt or reject innovations. In essence I use this framework - which I call 'creating advantage in the minds of many' - as a sounding board to identify which ideas and tools are essential to good innovation management and which are not. One thing that amazed me when I was writing the book was how many management theorists and business practitioners ignore what we know about the market acceptance of innovation. How can you manage innovation well if you don't understand what the customer does with it?

INSEAD: What are the most important skills that managers need to develop to create value for customers?

DM: I identify five key tasks the firm needs to suceed in and then dedicate a chapter to each to explore the ideas behind them and provide the necessary tools. These tasks are:

• Chartering innovation within the organisation
• Selecting, preparing and supporting the right team
• Co-creating the innovation with customers
• Changing the organisation to deliver the innovation
• Building the market for the innovation

If you can do each of the above reasonably well, then your firm is likely to be successful.

INSEAD: Is innovation more important today for a business than say ten years ago? If so, why?

DM: Yes it is, for many reasons. Global competition has increased, technological development provides more opportunities, customers are more sophisticated, shareholders expect continued growth, etc. I'm sure we can come up with a long list here! However, the basic conclusion is that all these factors mean the life span of any particular product, service or business model is shortening. Just to survive firms need to find new products, services and business models, and to grow they need to be good at sustained innovation.

INSEAD: Can you give an example of an organisation today which has a powerful innovative business model and explain why?

DM: The obvious example is Apple. However, what is interesting about Apple is not the products that people fixate on. Sure these are well-designed and made, but other firms in this industry also make good products. No, what is interesting about Apple is the move to new services such as iTunes or the App Store and new business models (such as the royalty deal with the music industry). These are real innovations, the rest is just good electronics. One can also think of B2B examples like Air Liquide in industrial gases or Otis Elevator in people movement. Their growth is coming through innovative new services and business models and not their core products.

INSEAD: Can your book help to deal with economic downturns such as the downtown we are currently experiencing?

DM: Who said 'necessity is the mother of invention?' There are lots of opportunities in downturns as well as upswings. Indeed if customers are constrained their choices will focus more on the firms that can provide the best value. So those firms that are able to constantly improve and redefine value are more likely to do well and emerge from the next couple of years in an even stronger position. Innovation is not the only solution to the challenges of the current economic situation, but is a powerful one.

INSEAD: What advice would you give to alumni who want to develop innovation in their business? What are the first steps?

DM: Set a clear direction for where you want innovation, put the right people into your innovation teams and work with customers as partners in development. That will get you more than half-way there. And for the details on how you can do all that, please read the book!

To purchase a copy of this book on Amazon, click here.