Tony Davila - The Definitive Guide to Effective Innovation

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Tony Davila
Marc Epstein
Robert Shelton
Andy Bruce
David M. Birchall
Luke Williams
Jonathan Cagan
Craig M. Vogel

Vice President, Publisher: Tim Moore

Associate Publisher and Director of Marketing: Amy Neidlinger

2013 by Pearson Education, Inc.

Publishing as FTPress Delivers

Upper Saddle River, New Jersey 07458

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

ISBN-10: 0-13-344857-6

ISBN-13: 978-0-13-344857-3

For more information, please contact us at

How to Manage It, Measure It, and Profit from It

Updated Edition

Tony Davila
Marc J. Epstein
Robert D. Shelton

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jeanne Glasser Levine
Editorial Assistant: Pamela Boland
Operations Specialist: Jodi Kemper
Marketing Manager: Megan Graue
Cover Designer: Alan Clements
Managing Editor: Kristy Hart
Project Editor: Andy Beaster
Copy Editor: Krista Hansing Editorial Services
Proofreader: Sarah Kearns
Indexer: Larry Sweazy
Compositor: Nonie Ratcliff
Manufacturing Buyer: Dan Uhrig

2013 by Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing November 2012

ISBN-10: 0-13-309258-5
ISBN-13: 978-0-13-309258-5

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Library of Congress Cataloging-in-Publication Data

Davila, Tony.
Making innovation work : how to manage it, measure it, and profit from it / Tony Davila, Marc
Epstein, Robert Shelton. -- Updated ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-13-309258-5 (hardcover : alk. paper) -- ISBN 0-13-309258-5
1. Organizational change--Management. 2. Technological innovations--Management. 3. Industrial
management. I. Epstein, Marc J. II. Shelton, Robert D. III. Title.
HD58.8.D37 2013
658.4063--dc23
2012033439

This is the book I wish I had read thirty years ago. Making Innovation Work is an important resource for leaders who are trying to improve innovation in their organizations. Its crammed with examples and practical ideas that can trigger improvements in innovation, starting tomorrow!

Lew Platt, Chairman of Boeing, former Chairman and CEO of HP, and former CEO of Kendall-Jackson Wine Estates

Davila, Epstein, and Shelton remind us that even if the end product is rocket science, the process need not be. To the contrary, tried-and-true practices of management, process, metrics, and incentives are all that it takes to let innovation happen consistently.

Andrew Beebe, President, EnergyInnovations

Making Innovation Work is a fresh approach to systematically managing innovation. It integrates the innovation management literature in a way that is insightful, creative, as well as pragmatic. Davila, Epstein, and Shelton have particularly fresh insights on learning, culture, leadership, and executing change. This book will be of great help to those managers leading innovation and change.

Michael Tushman, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration, Graduate School of Business, Harvard University, and author of Managing Strategic Innovation and Change and Winning through Innovation

This impressive book offers specific techniques for driving systematic, repeatable, and managed innovation at all levels in your company. It will help you build a balanced portfolio that integrates both incremental and radical innovationsso you can sustain growth indefinitely, instead of flaming out.

Guerrino de Luca, President and CEO, Logitech

Making Innovation Work provides an excellent roadmap to innovation: its various facets, why each facet matters, and how they can be enhancedseparately and collectivelyin any organization. It also debunks a few tenacious myths, starting with the oft-heard excuse that innovation is an inherently unpredictable and uncontrollable process. Based on their vast research and consulting expertise, Davila, Epstein, and Shelton convincingly argue that innovation performance is indeed controllable and improvable, and they provide a powerful framework to do so. If youre interested in improving your organizations innovation performance and potential, this book will tell you how. If youre not, it will tell you why you should be!