Achieving Innovations Capability Coherence

Coherence 1Innovation often fails to align to the strategic needs. This is often not the fault of the innovator.

Many innovators are simply happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom that is not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovate does need to understand and reflect the organization’s business activities, as innovators need to grasp the value creation aspects that will deliver the necessary capital-efficient and profitable growth, and then ‘go in pursuit’ to achieve their contribution to these goals.

Even the basic questions often remain unclear, those of how are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital? Managing our innovation activities can help in all of these. Actually if you ask I expect the CFO would say “all of them” but each does have implications on understanding of the fit and eventual role of innovation’s contribution.

Deeper read or quick summary? Depends on the time we have.

researching_innovationI recently wrote a post “Finding knowledge and research to help you learn and adapt.
On reflection, I should have replaced the word “research” with “time”……time to help you learn and adapt.
Finding time is a real struggle and going that extra mile to read thought leadership views, long often drawn out reports or academic papers can be a step too far, I know but I can’t help myself, it is part of my job and certainly for me, many are really worth the read in a positive end result of new learning.
In that post mentioned above, I was recommending Deloitte and their thought leadership as a good place to visit. Now I’m not sure how many of you actually did so I thought in this blog, to pick out a couple of ‘choice pieces’ and make a posting summary of these, as ones that might be useful.
So I’ve chosen two that challenge and break ground.

Finding knowledge and research to help you learn and adapt

Learning and Knowleodge Sharing“The world has never been as complex, dynamic and uncertain as it is today and the pace of change will only increase.”
We hear this consistently, our continual problem is trying to make sense of it.
So much is coming towards us and to assimilate it and turn it into value, usable value, so we can adapt and respond to it in new ways of opportunity by adding further to the knowledge by turning this into new innovation potential.
Seeking out knowledge, and being proactive, partly helps as being consistently caught by surprise makes your world even more insecure.
To attempt to keep up to date we all need to invest increasing time in acquiring a better understanding, a deeper knowledge of all the interconnected parts. Even if we are “time-starved” we simply must try and keep moving along in this understanding.
As part of my job, advising others on all things swirling around innovation, I invest significant time in researching, learning and applying what I feel is important to others, so as to understand or at least to raise their awareness to change practices, thinking or approaches.
At times it all seems to come literally flooding in, overwhelming the senses, that I just have to wait and let it settle in my mind before I can attempt to process it and translate it into something of value to me, then eventually to my clients or readers.
 

Opening up our innovation to stay relevant

Staying RelevantOur whole understanding of innovation is changing; there are numerous shifts occurring.

We are opening up our thinking about where and with whom, to collaborate.

We are evaluating and changing our existing focus from closed (internal orientation) into one that is having a far more open stance. We are searching for more collaborative innovation (external orientation) combining external partners into more ‘collective thinking’.

The shifts taking place are offering us the promise of “extra acceleration” that is needed to improve our innovation performances from concept to market delivery. Or, we hope it is!

Collaborative innovation is also leading us to higher chances of achieving greater impact and success, as nearly all novel ideas lay are mostly outside the organization’s domain of understanding. We need to always bring the knowledge inside and build from it.

As we increasingly include the customer and their more exacting needs within our understanding, these multiple collaborations and dialogues are building this better internal understanding to align our innovation with specific opportunities, relevancy and needs.

The New Innovation Value Chain Perhaps?

TSatisfied or Nothese are simply some opening thoughts. For a long time, I have become increasingly dissatisfied with the way we have managed or even depicted the innovation value chain.

I really think we should bring it up to date.

There has been such a considerable change taking place in many of the parts of innovation management, I think we need to replace the existing fuzzy front end, the pipeline and portfolio stage followed by execution with something far more reflective of how we think and what we deploy today as tools, methods and frameworks to deliver innovation.

The ‘old approach’ just does not calibrate anymore for me with where we have been heading, or more importantly in how we are attempting to manage innovation within our organizations.

So I feel we need to determine a new innovation value chain and would like to make the first attempt

Seeking fresh winds and new directions

the_winds_of_changeAnyone who has felt the ‘full force of the wind’ will know the feeling of how hard it is to keep on your feet, to stay determined to stay upright and true, to hold the course, whatever happens.
When you feel the force of change running through the organization, you tend to have that same sensation, to resist the force with all your energy.
It is often really hard to let go, the environment was something you had become used to, you accepted and become resigned to its weaknesses and constantly exploited its possibilities or even possibly the other way round.

Ignoring the power of choice within change is dangerous

Constructing a climate for any transformation is hard. Our cultures are deep-rooted; we resist those winds blowing into us “full-on,” well beyond being reasonable or smart enough to avoid them before they confront us. The Chinese proverb below gives us a clear choice: “to build walls or build windmills”

Restating the Value Proposition of Innovation Fitness

Innovation DNAI have been reviewing my work on innovation fitness landscapes, in the designing and understanding of the dynamic capabilities organizations constantly need to find, evolve and establish for sustaining successful innovation. Those that are more essential to manage the growing complexity in moving towards achieving successful and sustaining innovation outcomes.

I felt it was time to make a restatement.

Let me restate what I am focusing upon here, in this work and why it has a separate, dedicated website to allow me to evolve and share in this discovery and thinking through journey.

So my hypothesis, hopefully covered off in this initial explanation is made on the basis of growing research and evidence, as an investigative point for further work-to-be-done in thinking and constructing around the plotting or mapping out specific innovation landscapes that deliver the innovation capabilities needed.

This work is now at a point it needs additional help to take this out further in a testing and experimental environment and I am looking for one or more ‘willing’ organizations to be the pilot for this to validate and further improve from the learning.

The Challenge I’m trying to Solve

Knowing what are the critical factors for innovation and their dependence for sustaining innovation success are becoming a vital necessity to understand so an organization can place the appropriate resources behind them. The question is, which are critical, which naturally occur when others begin to be put into place, which seem to have limited or no real effect on changing the dynamics of innovation?

Innovators – are you thinking about Ecosystems?

Business Ecosystem Trends
Business Ecosystem Trends by Deloitte

Thinking about ecosystems certainly allows us to go out of our normal scope of internally generating new products.

It opens up a host of possibilities, that can add significantly to a new service design, new capabilities and solving more complex problems.

In opening up to managing within ecosystems, you begin to see your ability to contribute and tackle societal problems within a collaborative system.

You can see new opportunities that can allow you to enter new markets that would have been impossible as an individual organization.

You begin to see the power, scale and strength of having the collective collaborative ability to extend beyond more traditional thinking design. You go beyond the utilization of leveraging existing infrastructure, building on others’ specializations and leveraging through technology powerful new concepts to tackle increasingly complex innovation design.

The sharks that prey are arriving a lot earlier now

The Sharks are CirclingChange is all around us, it is accelerating not abating. Do you feel you are trapped, encircled and just a little concerned.

You often hear of volatile trading conditions, a more complex market and situations changing constantly and moving faster than ever. ‘Much’ seems to be closing in on us.

We do know we need to re-equip ourselves for constant disruption; we are really beginning to see a shift from the classic bell curve into more of a shark fin for adopting change.

One that is characterized by sudden, even violent success or an event, some moments of brilliant dominance, followed by a dramatic change in conditions as others have spotted the same opportunity and you hit a rapid decline, the race to the bottom of competition constantly negating one another.

Market are segmenting, the life cycle is shortening or having an even longer tail of dealing with slow decline and constant erosion of any competitive position. The sharks are arriving even earlier and in a greater need to show their dominance.

market_segments
It does seem “creative destruction” is a central force in many of our activities. Activities where innovation is continually replacing not just in products and new services but in designing radically different business models, searching to replace less adaptive competitors in the marketplace at faster rates.
Adoption is far earlier, the pace of change is quickening and from this, the competition is responding in new ways, often surrounding the new innovation with their version, built on often a really ‘fast follower’ principle to keep in step, and throttle off any different adoption, knowing what it costs to have to win this back over time if it can at all when it switches.
The life cycle is becoming even more important to manage in all of its stages, as its traditional shape I feel, is radically altering. It is coming faster and fading away quicker unless you manage its parts very specifically.

Technology leads, innovation exploitation is lagging

Technology and PeopleThere is a growing, perhaps even an overwhelming business case, for transforming the innovation management structure.

The new combination is the new connections through people and things (IoT) that we can achieve a new innovation potential.

We will obtain increasing more powerful insights that have the real potential of being turned into new innovation outcomes, through the connected businesses we are presently needing to build. This can generate new value and business propositions.

Today the virtual world of digital is moving much faster than the physical ‘enacted world,’ of turning insights into actual innovation activities, through the innovation pipeline. Our innovation systems are lagging significantly behind. We need to radically redesign them and bring them up to date, fit for managing innovation in the 21st century.

The whole discovery to final execution, is for most organizations still a very fragmented, often disconnected system. It is highly reliant on manual systems with people often disconnected from the real innovation engagement making decisions on inadequate data or insights.

We are failing to leverage all we have gained from our innovation understanding over the years. We have this ongoing inability to adapt, to connect the innovation system through the use of technology and growing value networks, so as to provide the integration, the dedicated resource and accountability to deliver successful innovation outcomes that our customers require.

Successful outcomes are certainly possible, from a well-designed innovation management system brought up to date, adaptive, flexible and responsive, if we apply the time and effort to conceive and construct it.