Don't just innovate

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We're told these days that we must all be innovators. But Oded Shenkar, a professor of management at Ohio State University's Fisher College of Business, says this is actually the Age Of Imitation. The business environment is littered with first movers who have underperformed their peers - think of White Castle, the first fast-food purveyor; and Diners Club, the first issuer of credit cards - while many imitators do so well they push the innovators out of business. On Ivey Business Journal, Prof. Shenkar outlines the methods imitators use to succeed:

Take a free ride

Having observed the market reaction to a product or service, imitators can better calibrate their offering to what is needed, and can often achieve lower costs. With the pioneering innovator paving the way - often after investing heavily in research and development and marketing - the second mover enjoys a "free ride" and also avoids potential dead ends. Prof. Shenkar cites generic drug makers, which not only leverage the investment made by the original developer but also save billions of dollars and decades of efforts by steering clear of ideas that are shown not to work.

Hit the sweet spot

The imitator can direct its efforts toward the "sweet spot" of superior returns and also delay entry into markets that have not yet reached a critical mass. He points out that imitators can have the luxury of waiting to work from a "dominant design" that has been established at someone else's expense, as happened with VCR formats years ago.

Take advantage of shortcomings

Imitators can profit from hindsight, capitalizing on the shortcoming of earlier offerings. He cites the example of Walt Disney, who was able to not only capitalize on the technical and organizational innovations of the early animation studios, but also compensate for the weaknesses of existing cartoon animation, which was known for weak stories, insipid characterization of central figures, and poor visual quality.

Be less complacent

Pioneers can be so taken with their success that they underestimate the dangers lurking in the rear-view mirror. Imitators are less likely to become complacent. "Imitators, who come from behind, tend to be humble and paranoid ... and hence are better prepared to defend against other imitators," Prof. Shenkar writes. "Imitators are attentive to game-changing technologies, whereas many pioneers stick to their original formula."

Become an 'imovator'

Imitation is not simple, he stresses. And it need not be totally distinct from innovation. Prof. Shenkar combines the two words to encourage you to become an "imovator," fusing imitation and innovation into a winning formula, each with a role to play. Approach both imitation and innovation in a strategic fashion, with creativity and imagination, and find the balance for success.