Innovation
is the ongoing, intentional exploitation of circumstance to generate
more and greater value.



Innovation is intentional. What I am talking about here is not an
accident. It is sought after. Sure there are the great stories of how
mistakes turned into great profits, like when Will Kellogg took some
stale wheat in 1894 and tried to turn it into dough but got flakes
instead.

But, that mistake was not the innovation. The innovation took place
twelve years later when after much experimentation he decided to mass
market the flakes and started the Battle Creek Toasted Corn Flake
Company.

And it didn’t stop there. Years later when cereal had bottomed out as a
children’s food, the Kellogg Company convinced adult America that
cereal was nutritional and easy to eat, moving it from a $3.7 billion
industry in 1983 to a $5.4 billion in 1988.

These moves did not happen by accident. They came as a result of an
intense desire to succeed in the marketplace, opening up new frontiers
for the food industry.

Innovation done well is exploitation. It makes full use of
breakthroughs, deriving benefits that include enhanced productivity,
improved efficiencies, greater profits, increased market share, and
above all exceptional growth in value… and it happens on purpose.