Innovation at Nike
Nike was ranked the #1 most innovative company of 2013 by Fast Company. Innovation is critical to the future success and growth of Nike; they even have a Sustainable Business and Innovation department dedicated to creative development/R&D. Nike CEO Mark Parker on changing Nike for the better, "One of my fears is being this big, slow, constipated, bureaucratic company that's happy with its success [. . .] Companies fall apart when their model is so successful that it stifles thinking that challenges it." Nike has four sort of unwritten rules that guide company innovation/growth.Rule 1 - To disrupt, you must go all in.
Nike has created a new method to create shoes, called Flyknit, that can create shoes as light as 5.6 ounces. The product has gone through 195 major changes since its first design, which started with a ballerina slipper. Nike remained committed to getting the product right, and has now created a revolutionary method to manufacture shoes.
Rule 2 - Anticipate a product's evolution.
Nike's FuelBand was created after the Livestrong bracelet. Nike officials had already been working on a personal fitness tracking device, but recognized the opportunity provided by the already popular Livestrong bracelet. They combined that with a social network type fitness tracking program, and the FuelBand was born.
Rule 3 - Direct your partners.
The FuelBand required collaboration with an industrial design firm, engineering firms, digital marketing agencies, etc. and produced hundreds of different design ideas. They had to perfect the calorie tracking software and create a curved battery. Innovation requires a great idea, but then collaboration with many different partners to develop the final product.
Rule 4 - Feed company culture.
Nike has a $750 Winnebago parked in its "Innovation Kitchen." Team members meet in the RV because Phil Knight sold shoes out of an RV when Nike was just a startup. Nike understands that the history of the company lends a lot to the future, and keeps many reminders of the company's past. They have worked hard to build a certain culture at Nike, and this is important for the development of new products that fit this innovative company.
