Understanding your innovation capabilities to make them more dynamic

The Nine Stages that are needed for developing an understanding of your innovation capabilities, so as to make them more dynamic and as a result to be at the top of your innovation game.

This “step process” I believe gets you to the point of understanding what innovation capabilities are a better ‘fit’ for the purpose, to deliver on your innovation needs on a consistent, repeatable and evolving basis.

Building innovation capabilities take time; they are complex, highly structured and multi-dimensional. Any structured approach to tackling innovation takes time and considerable commitment. Any learning involves sensing, seizing and then transforming.

We are searching for what makes up the present system and what needs to be part of the future to create a ‘best’ innovation capability environment that is sustainable into the longer-term. Those that can be continually ‘orchestrated’ and constantly adapted to meet the strategic need.

Recognizing the different capabilities to develop and grow

IFD Complexity WebA firm’s ordinary capabilities are the ones that enable us to perform efficiently and effectively, those essential routines and practices that often require having a high level of technical need supporting these activities.

In contrast, dynamic capabilities are those higher level competencies that determine a firm’s ability to integrate, build, and reconfigure both the resources and competencies to possibly shape, have the power to transform and then be deployed to meet rapidly changing business environments to take advantage of these changing conditions.

Recognizing the importance of Dynamic Capabilities

Dynamic capabilities are about selecting the right things to do and getting them done, while ordinary capabilities are about doing things right. The former implicates dynamic efficiency, the latter static efficiency.

Struggling with counting ALL the sums of our capital

Recognizing the different capitals

Organizations have been focused for far too long around the importance of financial capital. It determines and drives organizations destinies. We are caught in a constant focus upon our achieving a return on our (financial) capital as our measuring criteria. Organizations strive for improving their ROCE, RONA, IRR,  EVA and a host of other financial measures.

As Clayton Christensen has been arguing the agenda of organizations begins and ends with the “search for numbers”. I think there is a time for changing this, we need to search for the knowledge that makes-up eventually the numbers.

There has been a distant voice for some time putting forward the need to appreciate and value the other capitals sitting within organizations. Much of the discussions have been housed under the term “intellectual capital” which denotes the sum of knowledge made up and contributed by our human assets, our organizational structures and our relationships that are developed.

These are the ‘capitals’ that transform into economic value through organization action. It is the financial capital that simply finances this.

9 Stages for building innovation fitness

St Gottard Pass

Achieving innovation fitness is a journey- to get there we often have to manage the switchbacks as we build our capabilities and capacities to innovate.

  1. Getting Started – Understanding the Needs & Imperatives of Innovation Fitness
  • Why we must travel this critical path for Innovation.
  • The meaning of dynamic capabilities and innovation fitness landscapes
  • Merging  the theory with practical reality to produce new outcomes and positive results.
  • Focusing on resources and performance – why is this important
  • The problem is knowing what we have and what we really need

Peeling away the terrain of innovation reality

So do we have a clear understanding of where we are in our current innovation capabilities?

We have to establish a way to map our ‘terrain of reality’ in not just how we are performing but what lost opportunities have slipped through, simply because we lacked the awareness to seize on these opportunities when we first spotted them.

We have significant gaps in our innovation capabilities and competencies. Have you ever really audited them? Taken them through a structured examination?

We do need to achieve a ‘reality’ check or we stay in a state of, forgive me, ignorance. We don’t see the possibilities we only see the possible and in today’s world that is a losers mentality. We need to push ourselves but before we do, we do need to know where we are.

Through my work on building the Innovation Fitness Landscapes that are relevant to you today and then structuring the place you want to be by starting to address the questions: are we focusing on the right ones to deliver on the challenges we are facing?”, “what can we do differently?” and “how can we identify those critical ones”? and “how can these be structured to clearly move us to the new capabilities we require?”

My role here is to be the guide towards building improved innovation capabilities and capacity

My role is to help in this task by identifying the opportunity spaces on where you need to focus your efforts‐ and apply the appropriate understanding and identify what resources are needed, so my job is to help you to navigate the terrain. Here is my journey outline described as a typical story that we all need envision and go through.

Through an innovation fitness landscape plan, you can access where you are and what needs to be achieved to get you to the desired point you see as where you need to be.

Do you REALLY want to know how to innovate?

Applying a lens of discovery:

The basic questions that need to be addressed are:

“what are our dynamic capabilities that will deliver innovation impact?

More importantly: “which ones should we focus upon to improve our capabilities and competencies over the longer-term?

We recognize resources are scarce as our starting point

Yet we fail to understand the makeup of innovation. We still don’t understand the parts that contributes to the ‘dynamics’ of innovation or how they combine for the interdependency of the parts we so often need.

It is all innovation talk, not much real doing.

so-much-talking-innovationAll companies talk about innovation and its growing importance but it seems to me very few succeed in actually doing it on a repeatable scale.

So have you ever asked what inhibits innovation? What would drive innovation success? What aspects of innovation are critical to have so innovative growth can be achieved? Where should a company place its emphasis to gain both an improving impact on its performance and strengthen its innovation capabilities?

Have you ever evaluated your capabilities, competencies, and capacities to innovation in light of a changing landscape?

One where competitors have gained new ground or you have been confronted with a more disruptive product that threatens your established position or has even the potential to threaten your very existence? Your ability to respond to changing positions are often determined by knowing which capabilities and capacities you can call upon and leverage for finding new solutions that accelerate and innovate your position to respond and stay competitive.

If we take the view:

One pressing need in Innovation understanding.

building dynamic innovation capabilities 2There is a really pressing need in Innovation to tackle and resolve and that’s our capabilities to innovate.

Yet do we know which are the critical factors for sustaining innovation success? What capabilities are needed to be built? What are not so necessary and will occur more naturally due to us finding these dynamic ones? Also, what capabilities that are in place we can stop investing money into on the mistaken belief they contribute to innovation.

It is becoming increasingly vital to understand those critical innovation capabilities for  an organisation to have in place, so as to deliver on the goals and vision required to grow the business and maintain its health for it to prosper and thrive.

The dynamic points of innovation understanding

Fitness Landscape 1 Sewall WrightHave you ever studied a map in a hilly or mountainous terrain? When you are studying the terrain, you have to survey the landscape and then decide how to cross. You need to be aware of what to avoid and what will help you map out a successful pathway. You need to optimize, evaluate and determine your best options.

Determining future innovation outcomes requires a greater understanding of what capabilities are more useful to develop, those that offer a more dynamic capacity. Do you know yours?

Can you separate these from the many you have that fail to give innovation impact?

We never start from a blank innovation canvas.

None of us has a ‘blank’ innovation canvas, we have developed a present position; one that is built on a legacy of past work and from our needs built up from our innovation activity, also in the past. As these develop we make choices, we sometimes become locked into certain structures, systems and processes, so we find it often highly difficult on how we are going to change, to move from one position to a different one – traversing the landscape to achieve better solutions to meet different goals that meet the present or future needs.

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?