Introduction

The concept of innovation has existed for a long time. Webster's dictionary defines innovation as the introduction of something new a new idea, method, or device. In most people's mind today, innovation, more often than not, conjures up images of the latest gizmo or some advanced "gee-whiz" technology.

One of the clarion calls in all businesses is to innovate, that is, they must develop or access the latest advance in technology, products, or processes in order to gain a competitive advantage. And yet, many companies are managing this process with only mediocre results. How can you achieve advances through innovation in a climate of mediocrity? In manufacturing companies, working to create innovative products without having your basic practices in order is problematic at best, and nearly impossible at worst. You might, by some accident or happen-stance, but innovation and the attitude and culture that goes with an innovative company must permeate the organization from the CEO to the shop floor. It's quite difficult to create an innovative environment in an organization when only one small group (e.g., research and development [R&D]) is perceived to be responsible for innovation.

In his book Gemba Kaizen,1 Masaaki Imai observes that Western companies tend to worship innovation, where innovation is focused on major changes following technological breakthroughs, the latest management fad, or new production techniques. According to Imai, this is a high-risk approach to innovation. On the other hand, he suggests that Kaizen, or...