Today John Dvorak claimed that Sony can no longer innovate. Looking at recent history, he looks right. But I’d say he’s kneeling over the gravestone a bit early. Yes, Sony somehow missed the whole MP3 phenomenon and let Apple steal what should have been their big show. But given the half life of gee-whiz technology and entertainment, this movie is far from over.
Sony is still full of innovators. Both in devices and content. But they are hamstrung by applying old school best business practices that cut off the ideas before they get to market. The change in Sony to "professional management" when Morita retired has caused too much internal focus and inhibited taking highly innovative insights to market.
Morita was a very un-Japanese businessperson. He enjoyed innovation, and bristled at the bureaucracy and conformance that typified Japan. He couldn’t help looking for entrepreneurial new products and markets. Now, the new CEO is an America-trained businessman. America is known worldwide for its entrepreneurism and openness to new ideas. Perhaps he will turn Sony toward this American style – and a return to the days of Morita.
What would we look for? Stringer needs to disrupt the organization a bit by pointing out how their existing processes inhibit innovations working their way through the company. And he needs to loosen up the organization. Fewer number reviews in meetings and more gadget reviews might be a good start. Stringer needs to put both content and gadget folks in the same teams and see what they develop. With so many innovative folks, he needs to create White Space teams with permission to ignore the Sony business systems and create new success formulas. Give these teams permission to be different, and resources to succeed.
Look for White Space in Sony. If you see it, buy the stock. Sony is loaded with ideas – heaven help competitors if they set those ideas free!
