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The Eight Essentials of Innovation in Every Business

Narendra Kumar

| Updated: Nov 08, 2017 | Category: Latest News

Business

Strategic and organizational factors are what distinct successful big-company business innovators from the rest of the field. Innovation is difficult for well-established companies. Generally, they are better executors than innovators and the reason for game-changer is creativity instead of optimizing the existing businesses.

As innovation is a complex, company-wide endeavor, it requires a set of practices and processes to structure, organize, and encourage it to change.

Companies must set and arrange the terms and conditions under which innovation is more likely to succeed within an organization. No proven formula for success has been, particularly when it comes to innovation. They need to learn how to deliver and organize themselves for innovation to contribute meaningfully to overall performance. Good leaders must test their organizations on the following strategies to determine how best to innovate.

In the digital age, the pace of change has gone into hyper speed, so companies must get these strategic, creative, execution, and organizational factors right to innovate successfully.

Aspire

A far-reaching vision can be a convincing substance, provided it’s realistic enough to stimulate action today. Do you regard innovation-led growth as critical and do you have targets that reflect this growth? It helps to combine high-level aspirations with estimates of the value that innovation generates to meet financial growth objectives. Quantifying an innovation target for growth,” and making it an explicit part of future strategic plans, helps solidify the importance of and accountability for innovation these targets need to be individually mapped to the corporate structure to ensure that everyone is properly aligned and encouraged to participate.

Establishing a quantitative innovation aspiration is not enough, however. The target value needs to be apportioned to relevant business “owners” and cascaded down to their organizations in the form of performance targets and timelines. All other fewer risks promising inaction or the belief that innovation is someone else’s job.

Choose

Fresh, creative insights are invaluable, but in our experience, many companies run into difficulty less from a scarcity of new ideas than from the struggle to determine which ideas to support and scale. At bigger companies[1], this can be particularly problematic during market discontinuities, when supporting the next wave of growth may seem too risky, at least until competitive dynamics force painful changes.

It is characteristically risky, to be sure, and getting the most from a portfolio of innovation initiatives is more about managing risk than eliminating it. Since no one knows exactly where valuable innovations will emerge, and searching everywhere is impractical, executives must create some boundary conditions for the opportunity spaces they want to explore. The procedure of classifying and bounding these spaces can run the gamut from intuitive visions of the future to carefully scrutinized strategic analyses.

Do you invest in time and risk-balanced portfolio of initiatives with sufficient resources to win? When asked for ideas, employees typically have plenty of suggestions, but which ideas are proper to scale and embrace. Leaders need to manage risk and determine the right path innovation.

Discover

It needs actionable and differentiated insights—the kind that excites customers and brings new categories and markets into being.

Do you have distinguished business, market and technology insights that translate into winning value propositions? You have to determine if you have a valuable problem to solve, a technology that enables a solution and a business model that generates money from it.

The vision discovery process, which extends beyond a company’s boundaries to include insight-generating partnerships, is the lifeblood of innovation. We won’t overstress the matter here, though, because it’s already the subject of countless articles and books.

Read our article:5 Essential Finance and Accounting Tips for Small Businesses

Evolve

There is risk attached with mobile apps to upend old-line industries, business-model innovation has become all the more urgent established companies must reinvent their businesses before technology-driven upstarts do.

Do you make new business models that provide defensible and scalable profit sources? Where some big companies are reluctant to risk change, they recognize that they must innovate their business model before it is threatened.

Accelerate

Virulent antibodies undermine innovation at many large companies. Cautious governance processes make it easy for stifling bureaucracies in marketing, legal, IT, and other functions to find reasons to halt or slow approvals. Too often, companies simply get in the way of their own attempts to innovate.

Do you beat the competition by developing and launching innovations quickly and effectively? Sometimes, larger companies are slow to enact decisions in a timely manner.  This can kill attempts to innovate.

Scale

Some ideas, such as luxury goods and many smartphone apps, are destined for niche markets. Others, like social networks, work on a global scale. Unambiguously considering the appropriate magnitude and reach of a given idea is important to ensure that the right resources and risks are involved in pursuing it

Do you launch innovations at the right scale in the relevant markets and segments? One must consider the appropriate magnitude and reach of a given idea. Scaling up over time may not be the right decision.

Extend

In the space of only a few years, companies in nearly every sector have conceded that innovation requires external collaborators. Flows of talent and knowledge increasingly transcend company and geographic boundaries

Do you win by creating and capitalizing on external networks?  Sometimes the flow and knowledge of others can provide a fresh perspective on growth and ideas.

Mobilize

Are your people motivated, rewarded and organized to innovate repeatedly? This is a critical step in the innovation process, as some employees don’t feel it is their responsibility to change the company. They all must be mobilized together to shift the way things are done.

Conclusion:

Big companies do not easily reinvent themselves as leading innovators. Too many fixed routines and cultural factors can get in the way. Those who make an attempt, innovation excellence is often built in a multiyear effort that touches most, if not all, parts of the organization

Read our article:IP Due Diligence – Everything You Need to Know

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant


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