When it
comes to innovation, we usually face two main challenges.
- Not everyone understands well the true value of innovation. So I like to say that innovation is the art of turning ideas into business (and money) in the mid and long term.
- The hardest part of innovation is not having an idea: the hardest thing is to carry it out. The good news is that although the innovative idea fails, we always have the opportunity to learn from failures.
But let’s
start at the very beginning. The first decision to make is what kind of
innovation we want to do. This point is very important because it will
determine who should take the lead and how.
Different levels of innovation:
According
to The Innovation Policy Platform “a radical or disruptive
innovation is one that has a significant impact on a market and on the
economic activity of firms in that market, while
incremental innovation concerns an existing product, service,
process, organization or method whose performance has been significantly
enhanced or upgraded”.
Radical innovation implies risk and has to be driven from the top to bottom and to make it
work you have to exclude from the daily team and give to a separate business
unit.
Incremental innovation implies lower risk and has to be driven from the bottom to up. To get it done you need to create an internal culture in the organization.
Incremental innovation implies lower risk and has to be driven from the bottom to up. To get it done you need to create an internal culture in the organization.
When
there’s no innovation department and we expect innovation to surface among
employees of the organization (therefore incremental innovation) then some
conditions must be met. Somehow there must be a culture of innovation with the
following approach:
Jump and learn: learning by doing
Most of the
innovative ideas are already in the organization, although for many reasons
very few arise. Not everybody feels comfortable when taking risks or dealing
with uncertainty. And definitely only a few are willing to devote extra time to
these processes. Therefore, the most important thing is to find the right
people with the right attitude.
From this
point, we must devote the right time for planning and then move on to
implementation rapidly. Only by applying
the appropriate methodology, we will ensure that we learn from the failures and
we incorporate our learnings in new innovation processes.
Ownership & rewards: people first
It is
highly recommended that the team that will develop the new idea feel that owns
the process. The best scenario is one in which the team developing the idea is
also the team that starts and operates it. Betting on teamwork is a way to
significantly increase the probability of success and collective learning.
Questioning
In my post
“Questioning in business” I mentioned Yamashita’s
considerations: “Company leaders are realizing that if they’re only asking the
small questions, it’s not going to advance their agenda, their position or
their brands. In order to innovate now, they have to ask more expansive
questions”.
Devote time (quantity and quality)
If we are
truly committed to innovation, it is essential to dedicate a specific time in
our agendas. Senior management full alignment is also essential.
Training
As I said
before if we want to ensure that the innovation process works (results and / or
lessons for the future) is essential to use a rigorous methodology. And that
cannot be improvised. It is essential to have adequate training provided by the
company.
Other posts on innovation:
The challenge of innovation
Innovation prowess
The role of the leader in the innovation process
Other posts on innovation:
The challenge of innovation
Innovation prowess
The role of the leader in the innovation process