Innovation doesn’t happen in a vacuum. Despite the popular image of a solitary genius coming up with technical or artistic breakthroughs, innovation requires a conducive environment that allows it to bloom. In his book, ‘The myths of innovation’, Scott Bergun says that innovation isn’t really a light bulb moment. It isn’t epiphanies in board rooms, and everything falling in place for the organisation in a straight line. It is a combination of teams coming together, with maybe not so groundbreaking ideas that develop into so much more.
This is witnessed across cultures, organisations, history, and industries. The Renaissance spanned over two centuries in Europe, beginning in Florence and spreading its way steadily across the continent. Countless thinkers, poets, and artists developed new work, including polymaths like Leonardo da Vinci and Michelangelo. All of this was possible because many wealthy elite of the time, such as the Medici family, not only sponsored artists and scientists, but also curated, critiqued, applied, commissioned, and invited collaborations. Similarly, in South India, the 19th century was a time for many new compositions and combinations in fields like music, dance, and poetry because of the systematic patronage of royals like Serfoji II, the Wadiyar family, and Maharaja Swathi Tirunal of Travancore.
So, how do we allow for the circumstances of innovation to emerge? What are some of the companies that are considered innovative doing differently in today’s context? Let’s explore some of their foundations for innovation.
1. Collaboration as a tool for innovation
Creativity can take many forms in organisations—be it through the internal processes that you institute, new product developments, how you deal with competition, or how you choose to embrace the new developments happening in the world. A great example that illustrates all these key points is how Apple chose to innovate with collaboration and addressed all these points at once.
In the 90s, when Apple was on the verge of bankruptcy, Steve Jobs made some of the boldest decisions. They partnered with Microsoft, one of their biggest competitors. Apple not only simplified its product line, but also launched the iMac with Microsoft. This eventually developed into a line of products that don’t need naming anymore. It goes to show that when push comes to shove, nothing is off limits when it comes to innovation—not even collaborating with an unlikely partner.
2. Adapt to new developments
Sometimes, innovation can come to you in the form of new technological or cultural developments happening in the world. When the internet became a household commodity, there’s a high chance that organisations that failed to adapt were left behind. Netflix was able to adapt quickly to this change, as while they started as a DVD rental service, they soon transitioned to a subscription model with a website that offered unlimited rentals to their audience. This stands in clear contrast to Blockbuster—another DVD rental company. While they were much bigger than Netflix initially, and had tabled discussions to acquire Netflix, a lack of will to embrace developing technology, amongst other things, led to their bankruptcy.
Similarly, when AI is all the rage and is most definitely the future, those who fail or are hesitant to adapt might not be able to leverage its full potential and stay ahead of the curve. GoDaddy, the fifth largest web host and domain registry, had a rocky start. In 2024, they launched a service called Airo—an AI-powered tool that could help site owners to develop everything brand-related for their product; this includes not just the website, but their logo, design, and more with just a few prompts.
But what isn’t talked about in embracing new trends to innovate is to understand your needs as well. In GoDaddy’s case, they understood that a lot of their customer base doesn’t have a marketing team, copywriters, or webmasters to advise them on how to build a website. So, adding the element of generative AI was not just a trend move, but a need-based initiative that benefitted their customers.
3. Decentralise to get ideas from everywhere
It isn’t always the leadership team or an innovation team that needs to work on big ideas. Every person who works in a particular area, no matter what the position, becomes an expert in that field. They know what aspect needs to be improved upon and what area should be left alone.
McDonald’s embraces the idea of decentralising innovation to every facet of their system the best. From the people who supply their raw materials to their customers, they don’t hesitate taking ideas from anywhere. They created a new restaurant experience team for this very purpose, to bring together operations, supply chain, restaurant design, and many more teams together in one place to develop big ideas. Essentially, creating a cross-functional team that brings in multiple perspectives across functions for innovation.
Having all teams in one place means there are no bottlenecks when it comes to execution. It also means doing away with a traditional hierarchical system and decentralising that transfers the power of innovation to different entities in the business.
4. Diversify teams to diversify ideas
When people come from different backgrounds, cultures, and experiences, their way of looking at a problem is different from one another. A fun example is McDonald’s McAloo Tikki burger, which was developed by the company’s local R&D team—not a global team. The solution is simple, really, and represents two important facets of innovation–investing in research to understand the market, and including those who have experienced the culture of the target audience to gauge what the customers would enjoy. As a result, McDonald’s managed to create an innovative product that captured one of the biggest markets for the organisation.
This pattern is seen across industries, from technology to healthcare to hospitality, diversity and inclusion don’t just help in providing a global recognition to a company, but foster an equitable environment where employees just genuinely enjoy working. And that is the biggest element that guides innovation—a healthy and enabling workplace where people think outside the box, and don’t hesitate in presenting their ideas.
Innovation isn’t necessarily a one-time event or the work of a single genius—it’s a continuous process shaped by collaboration, adaptation, decentralisation, and diversity. The most successful organisations break traditional industry boundaries, embrace emerging trends, and foster inclusive environments where ideas can thrive. By drawing inspiration from different industries and cultures, companies can unlock new possibilities and stay ahead of the curve. Ultimately, innovation isn’t just about technology or trends—it’s about creating the right conditions for ideas to evolve, take shape, and make a lasting impact.