Organizations are able to build innovation competency, analyze performance, needs, benefit per cost to increase innovation return on investment consistently.
As businesses get more cut-throat in the hyper-connected digital environment, innovation has to become a differentiated business capability of the organization, allowing the business to delight customers, create unique values, win the competition and stay ahead of the game.
Alignment of key elements such as talent, process, technology, tools, culture, etc, is critical to innovation management: Innovation often takes the cross functional collective effort to achieve its business value. Most companies fail at innovation execution because they don’t understand the linkage required to work horizontally across disciplinarily; or they haven’t built cohesive processes to improve vertical accountability. Make sure that the company has a steady flow of fresh ideas; there are established methodological platforms and processes that allow you to prioritize and implement the best ideas for achieving their business value.
People are often the weakest link in innovation management. The key issue is people & their emotions, energy and focus. It is important to align business innovation with desired corporate strategy, implementing excellent people, performance, demand, and asset management processes. Innovation has to be managed via well-aligning talented people, robust, but not rigid processes, and the multi-step approach in a more systematic way to improve the innovation success rate.
Taking initiative and applying discipline to innovation is to figure out how to manage innovation in a structural way: In reality, many companies grow on the basis of “idea creation,” but then get bogged down when trying to “commercialize” those ideas, because it requires a different mindset, skillset, toolset, and differentiated capabilities. Innovative implementation has advanced many, but if something is missing, stagnation and uncertainty will surface. Have a process in place that allows for the submission of ideas; create a disciplined, managed space for developing and testing new models, products, and business approaches.
This means there is a need for actual work to be happening to understand the basics, take a realistic approach by involving every line of people, processes, and resources to create value; set the right dose of risk appetite, improve risk intelligence, manage the execution of each innovation initiative; integrate & optimize a balanced innovation portfolio management to maximize innovation value creation in a structural way.
Innovation should eventually result in business benefits – be it tangible or intangible: Given the dynamic nature of business and the complex mix of its resources and business factors, innovation performance is mostly a mix of past and present. One of the critical goals for innovation performance management is to create new revenue and drive early success to create a positive spiral for accelerating innovation performance. It’s also crucial to build an innovative culture, produce high performance results in a consistent way.
An organization’s innovation performance could be measured in terms of its ability to convert the ideas that enter the “innovation pipeline” into the desired outcome. It’s important to clarify a well-defined set of innovation performance metrics in better measures of innovation success including customer satisfaction, process improvement, brand reputation, revenue sustainability, etc.
To develop innovation as the differentiated competency, companies must go beyond experimenting, commit to taking a systematic scenario to explore innovation in a structural way for achieving high-value business results. They are able to build innovation competency, analyze performance, needs, benefit per cost to increase innovation return on investment consistently.