Implementing an innovation strategy at a company requires a dedicated process for nurturing and commercializing
valuable ideas, much like any other production line activity; leveraging the organizational ability to deliver near-term results to invest in the research needed for perpetual results year after year.1)Govindarajan, Viyay and Desai, Jatin. Innovation Engine: Driving Execution for Breakthrough Results
The Innovation Value Chain
The key to success in corporate innovation is using the method in the right place at the right time. The goal is to build a culture that:
– Fosters the right type of innovation in the right space.
– Has specialized innovation departments/projects.
– Avoids ad hoc innovation approaches.
– Reduces risk through iteration
– Has the framework to transfer successful innovations to the company as a whole.
What Might This Look Like?
Goal: Get executives to understand that innovation is a process.
Change mindsets to understand risk in order to create future revenue.
Understand that while concepts can be found throughout the company, the refinement of these ideas into actual projects should be compartmentalized.
Encourage interactions and vetting of ideas outside the organization.
Goal: Minimize bureaucracy
Reduce operational guidelines for those involved in innovation.
Develop a process to export changes from the innovation group to the rest of the company.
Goal: Find the right personnel.
Develop a compensation plan that motivates innovation processes.
Recruit from beyond the organization.
Goal: Seed new offerings with clients.
Listen to feedback from customers about the pains they are trying to solve.
Find potential customers interested in testing innovative products.
Goal: Approach innovation as an investment rather than as a cost.
Dedicate a budget for innovation.
Structure the budget like a venture capitalist portfolio.
References [ + ]
|1.||↑||Govindarajan, Viyay and Desai, Jatin. Innovation Engine: Driving Execution for Breakthrough Results|