book.chapter Imitation's true worth

Companies often shy away from acknowledging their imitative strategies, yet overlooking the power of imitation can be risky. When executed skillfully, imitation complements innovation, fostering practical advancements. To remain competitive, businesses must blend innovation with imitation. Historically, humans and other species have relied on imitation for survival, tool-making, and competition. With advancements in communication and transportation, the opportunities for imitation have surged. Globalization and technology have broadened the scope for imitators, making it more accessible, cost-effective, and swift. The speed of imitation has increased dramatically. In the 1930s, it could take about 23 years for a good idea to become widespread. Today, successful products often encounter imitators within 12-18 months. Some of the most successful companies started by imitating others. For instance, Boeing was inspired by the de Havilland Comet to create the 707, and IBM took four years to lead the market after Remington Rand introduced the first mainframe computer. Similarly, Nintendo, which imitated Atari's Pong, eventually led the market. Imitators benefit from pioneers who have already incurred product development and market creation costs. They avoid expensive research dead ends and enjoy lower marketing costs since customers are already familiar with the product. With the advantage of hindsight, imitators can also improve upon the original products, often offering better and cheaper alternatives. They understand the necessity of differentiation and often introduce multiple models with enhanced features. Imitation can be serendipitous, as in the case of Ray Kroc building the McDonald's chain after encountering the McDonald brothers' restaurant. Alternatively, it can be deliberate, such as Walt Disney's quick adoption of sound and color in animation or Dell's focus on time-to-market and direct sales without a technological edge. The most successful imitators integrate replication with innovation, a concept that can be termed "imovation." These "imovators" strategically choose where to innovate and where to achieve parity, aiming for the market sweet spot that aligns with customer expectations. The fusion of imitation and innovation occurs at the "key strategic junction," which defines the customer experience and purchase decisions. Imovators develop capability platforms that deliver superior experiences at these junctions, sometimes through innovation and sometimes through imitation, focusing on the right mix. As Lionel Nowell, former treasurer of PepsiCo, remarked, even innovation efforts can be driven by imitation. The goal is to enhance and transform imitation into an "almost innovation," ensuring a competitive edge without falling behind. Obed Shenkar emphasizes that imitation is a complex, intelligent, and creative endeavor, with capabilities that are rare and highly valuable. Businesses must develop their ability to imitate effectively, referencing appropriate models and understanding the context to engage in true imitation.