What innovation lessons can one learn from LEGO ?

The book “Brick by Brick:How LEGO rewrote the rules of innovation and conquered the global toy industry”  by David Robertson describes the rebirth of LEGO and strategic choices made along the way. The book lists ideas such as a) linking innovation to operations (see the reference to 70% of the components of kits being common), b) thinking “inside the box” by setting constraints around innovation to increase “profitable innovation” and c) the rule “set a fixed direction but stay flexible in execution”  as all related to having disciplined innovation. Companies like Apple and Toyota also follow similar approaches. What might be the downside of “design discipline” i.e., what does management need to worry about missing out on as they instill design discipline ?  How might design discipline be leveraged to enable decentralized innovation and more ideas to flourish i.e., can design constraints result in more innovation than a design free-for-all ?

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