From an 1998 interview with Michael Dell:

“… That means we have to stay on top of our customers’ needs, and we have to monitor and understand the innovations in the material science world- everything from semiconductors to polymers to liquid crystal displays. You need to track anything having to do with the flow of electrons, and you need to keep asking how these marvelous developments might be useful to customers.

The customer doesn’t come to you and say, “Boy, I really like lithium ion batteries. I can’t wait to get my hands on some lithium ion.”

The customer says, “I want a notebook computer that lasts the whole day. I don’t want it to run out when I’m on the plane.”"

Reminds me of a quote from Henry Ford: “If I asked my customers what they wanted, they would have said, “Really fast horses!”"

 

Is in-house innovation at companies so critical as we are made to believe?

My take is that it is not. Because we confuse change with innovation, we think that the one is the other. Companies should be nimble-footed, so that they can absorb innovations* that are not theirs and move forward. In my opinion, rapid and ruthless execution of a beneficial innovation is more important than the innovation itself.

* The argument does not extend to industries driven by patents and regulations.

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