This chapter identifies that managers who primarily focus on increasing the speed of their innovation processes lose sight of the long-term strategic implications of their innovation decisions. Moreover, agility demands an understanding of customer demands and reliance on customer feedback. Ironically, simple customer feedback masks the underlying customer problem sets-and only a deep understanding of customer problem sets allow managers to develop innovative customer solutions that break out of standing customer need and product definitions. Hence, managers must recognize how imperative a deep linking to customers' markets and problem sets are. In linking to customer problem sets, the scope of innovation must also be redefined. Rather than working on developing new products or services or product/service platforms, companies must understand and link their internal capabilities to customer problem sets. This requires innovation at an organizational level with a strategic, systematic, and systemic focus. Companies that implement such an adaptive innovation management model will have to ensure a supportive infrastructure and culture, but can look forward to significant returns to their innovation investment.
