Innovation lessons from Toyota & YouTube

Michael Schrage in his HBR article Innovating the Toyota, and YouTube, Way talks about a common Innovation lesson that Toyota and Youtube hold. Now on the face of it these two are very different companies, in different industries and belong to a different generation altogether, so what is the common lesson that they have.

They both thrive on the innovation skills of their suppliers who in turn fuel their growth. Toyota enabled its partners to build scale that led to a scale for themselves, while youtube creates space for content creators and the content thus generator becomes an asset for them to grow. In both their cases, they create a loose space for their supplier or partners to innovate and benefit the whole supply chain.

I think this is a good thought, a thought that comes from thinking from an eco-system or environmental perspective rather than just around yourself. Sometimes companies tend to focus too much on their own growth and profits without realizing that it in turn depends on the growth of someone else and contributes to the growth of another set of people Рthe customers.  This chain continues in the sense the suppliers must feel the same for their suppliers and customers for their customers eventually thinking growth for everyone in the chain. Sounds philosophical but can be very practical, worth thinking about at least.

Anuradha Goyal