Innovation Isn't Always Easy...
People talk a
lot about the need to be “innovative” in their approach, or to come up with
“innovative” ideas for their company.
What does it all actually mean?
One definition
of “innovation” is:
“The process of translating an idea or invention into a
good or service that creates value or for which customers will pay.” (BusinessDictionary.com)
That’s it. The key is in the words “idea or invention”.
Inventions come from ideas, and ideas need to be made reality. It’s making the connection between idea and
reality that’s the hard part. The dictionary
goes on to say that:
“To be called an innovation, an idea must be replicable at an economical cost and
must satisfy a specific need.
Innovation involves deliberate application of information,
imagination and initiative in
deriving greater or different value from resources…”
That bit about “replicable at an economical cost and must satisfy a specific need” is important. The
innovation must be needed at the time and at a cost that people will
pay. You take in the information available, use imagination to work something out and
then initiative to make it
reality. Just find something for which
people will pay and that can be produced affordably.
Innovation can
be:
1.
Evolutionary (lots
of small but progressive advances
in
technology or processes);
2.
Revolutionary (the
“quantum leaps” that many associate with the word “innovation”).
People look at revolutionary innovations and ask “Now why didn’t I think of that?” Most often, they could have. What they lack is the ability to convert the
idea into reality (for any number of reasons).
Moving to a corporate level, why do some companies
find it so difficult to be “innovative”?
Look at the requirements above for:
- Information
- Imagination
- Initiative
The answer lies in the “corporate life
cycle”. When a business is young, it’s
small and nimble. Decisions can be taken
quickly and people do whatever it takes to get the business. Focus is on "Why are we here?”
Information, imagination and initiative are in balance.
The business grows.
More rules come into play. Information is still available, but now
the emphasis is on efficiency (doing
things with minimal wastage). Focus shifts to how things are done. This satisfies
the “affordable” (to the business) condition, but it may stifle original
thinking (imagination) as everything
must fit into the processes, routines and conditions prescribed by those who
are (often) least in touch with end users.
Add in the requirements for business cases, testing, legal approval,
management approval and so on and you have an environment that stifles initiative.
Being innovative also means taking risk, which may not always yield the
desired results. This doesn’t please
shareholders. Boards of Directors,
markets, the press and shareholders (all of whom have 20/20 hindsight) can be
unforgiving when a risk doesn’t pay off and it can cost a CEO his/her job. Better to play it safe, or imitate what
others do?
Labels: Leadership, Risk, Strategy
posted by William Martin @ 08:28
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