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Business / Industries

Taking innovation to the next level

By Hal Gregersen and Curtis T. Lefrandt (China Daily) Updated: 2014-01-21 07:13

What we found is that disruptive innovators frequently practice five fundamental "discovery skills" that distinguish innovators from non-innovators. Innovators ask uncomfortable questions that challenge the status quo. They observe the world like anthropologists to uncover novel approaches to doing things.

They network with people who don't think like them to access drastically different perspectives other than their own. They experiment relentlessly to pilot new ideas and often live outside their comfort zone. Collectively, these behaviors trigger new associations, which help them connect seemingly disparate ideas into highly disruptive and valuable innovations.

Take Henan Shuanghui, the third most innovative company in Asia according to our rankings, and China's largest producer of pork and other meat. The company made a splash globally last May when it picked up ham king Smithfield Foods Inc from the US for $4.7 billion.

Shuanghui has shown that it has a strong culture of observing, networking and experimenting. For example, studying the Oscar Mayer marketing playbook and networking with top-notch Western marketing companies gave the company the idea to invest $1.6 million in co-producing Shuanghui Forest, a 200-episode TV cartoon series featuring 10 characters modeled after its signature hot dogs.

Through robust experimentation, Shuanghui has also developed a cutting-edge quality control system that tracks the condition of 15 million hogs in factories across China. Leveraging these key discovery skills, Henan Shuanghui has maintained a long-term growth-rate of 97 percent and generated more than $ 6 billion in just the last 12 months.

Chinese policy makers, economic leaders and legislators can foster similar success stories in other companies by enabling the development and celebration of these critical skills in educational and professional settings.

An even more innovative China has much to offer its people and the world. Leaders and bold new moves by companies such as Henan Shuanghui offer a glimpse into what the next three decades of prosperity could look like if China marries its massive investment in patents, processes and research and development with the proven skills and philosophies of successful innovators.

Hal Gregersen is the Abu Dhabi Commercial Bank Chaired professor of innovation and leadership at INSEAD. Curtis Lefrandt is principal and vice-president of product and training at The Innovator's DNA.

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