3. Growth PlatformsThis area of focus refers to the selection, prioritization and communication (both internal and external) of new growth platforms and business concepts that promise to deliver long-term, sustainable competitive advantage. It is here, most especially, that high performers begin separating themselves from the pack by making the strategic distinction between effective innovation in general and the effective commercialization of innovation. Accelerating growth through innovation requires becoming more disciplined at identifying a company's innovation "center," as it were. For some companies, such as Apple, innovation generally flows from its products and services. Other companies, such as Wal-Mart, fuel growth through operational innovations. Business model innovation has helped drive companies such as eBay and Skype. Companies must manage growth from that innovation center, rather than from the periphery. Part of that commitment to innovation involves embracing new and disruptive ideas. Another important aspect is leveraging open innovation and open sourcing methods that bring together suppliers, partners, employees and management. Companies that effectively commercialize innovation also develop more risk tolerance when scanning for opportunities outside their immediate business environment. They become more willing to cannibalize products and services when investigating new growth platforms. They become more adept at the operational requirements of their winning concepts, leveraging current partners, networks, assets and distinctive capabilities to help drive growth through innovation (see "Leading by imitation," Outlook, January 2007). Finally, these companies know how to communicate their growth and innovation strategy, both within their company and to the marketplace. Like the old story of the tree falling in a deserted forest, future value that is not communicated effectively to the marketplace doesn't make any noise.
