Innovation Knowledge Understanding

 

Innovation pathways – a way to map out your strategy needs adapting.

I found time to finally sit down and listen to the discussion that occurred between Haydn Shaughnessy and Colin Nelson some time back, on the Hype webinar “How Companies Address the Disruption Challenge” and I thoroughly enjoyed it

There I was penning my notes as they discussed between them their different views on how they saw this world where disruption is becoming part of our daily lives. I took a lot of ‘takeaways’ from it and I’d encourage you to find the time to listen to it. Also, it prompted me to register and download Haydn’s White Paper written for Hype entitled “How companies address the disruption challenge”

If disruption is a new force then pathways give you options to respond

You can’t escape the reality that having the right environment for innovation means different things to different people. What we should be all able to agree upon is that the environment for innovation houses many of the conditions that connect innovation in people’s minds. The environment needs to be connected to the vision around innovation, it needs to be translated for each of us to relate too.

The environment provides the right growing conditions for your organization to foster its unique environment to prosper and grow. Deny those growing conditions and any innovation initiative is going to struggle and eventually die from the lack of the essential feeding of its roots.

We are constantly nudged towards understanding the needs of customers through the jobs to be done approach. So why do we still seem to not achieve this ‘higher purpose’ of providing solutions to customers’ needs?

Predictable growth has run its course as we live in unpredictable times; we need a better way to identify ALL those unmet needs that our customers have. That need comes from knowing the “job which needs to be done”. We need to sharpshoot to hit clear targets, we need to become a lot more explicit in our knowledge of a customer’s unmet needs, and they need to make the connection of that need with our product (or service).

We need to map the jobs and generate desired outcome statements that are specific and of real interest to the customer, not our list of multiple ideas generated based on where we are or what we think we know. We need to build the hierarchy of customer needs.

I wanted to depart from just focusing on innovation within this post. It is getting at me. I continue to read similar entreaties, it seems almost daily. Is this a symptom of a current malignancy or something that is going to be part of our future business lives?

We are extorted to disrupt our enterprises before someone else does. The constant threat of both known and unknown competitors could simply attack tomorrow. It is in our ‘complacency’ that we will be reduced down and lose our competitive advantages, even face extinction.

There is so much disruptive power being harnessed that we are all facing an exponentially more complex and challenging environment. Are you buying into this story of doom and fear?

The typical linear and often siloed mindset rapidly has to fall away when it comes to measuring and metrics within companies. The measurement of inputs, throughout and outputs needs to become far more focused on delivering speed and scale potential.

The outcome economy which is emerging has many implications within it and how we measure and value these will become increasingly important. Companies will need better data to calculate costs, evaluate their potential value, and will be modeling far more the risks, and tracking the factors required to deliver within any outcome-based value promised.

Many organizations are struggling with their metrics and ways to measure the progress and success of their business, and from this writer’s point of view, their innovation, it gets caught up in plenty of unintended consequences, to put it mildly.

Firstly, we are still locked in the old paradigm of thinking this is an industrial economy where we set about measuring inputs to innovation (R&D expenditure, capital investment) and then focused on the intermediate step of throughput and then outputs (publications, patents, end products). We also perceive innovation as an activity within just one company – viewed as linear, with considerations for services more of an afterthought (like ‘bolt-ons’). Production systems remain the driving force.

Today, the world of innovation is completely different. We need a far more open set of resources (many outside our own company) to enable innovation.

Why is it we always seem to fail back into the same traps or pitfalls? Bad habits seem to always reoccur even when we work on trying to eradicate them.

For me, innovation has eight pitfalls or sinkholes that we need to consciously try to avoid. Some are in our hands, others are clearly out of our hands and all we can do is try to influence them as best we can, for what we believe is right and appropriate.

I always show a particular interest in statements claiming to have identified a relevant driver of innovation change, to think through and see if they are as applicable to my own situation. Often they are but the underlying force sometimes needs to be seen differently to incorporate this ‘driver’ into your innovation activities and thinking.

I try to constantly work around nine drivers of innovation change.

I periodically work through each of these and see if anything has changed or the fact I am focusing on this specific driver I can see a different angle or opportunity.

Let me share my nine drivers. If you think of any more ‘generic’ drivers let me know. These are my drivers for innovation change:

I would like to discuss the effect digital will be having on our innovation activities, be these presently opened or closed. The impact of digital innovation changes the paradigm.

Organizations can stay closed in their innovation activities but will move beyond simply themselves into a connected (closed) network, so the platform becomes the enabler and those that join share common ground but are pursuing separate value propositions. These provide a level of competitive advantage but these are increasingly transitory.

We will see a new wave of open digital innovation

So why do I say that? There are four aspects where technology will trend towards open (see more on that here: http://digitalsocial.eu/) so as to exploit our connected world to extract ever diminishing competitive advantage as the world just keeps speeding up, pushing us as technology continues to run ahead of our capacities to assimilate it.

Well, are you going all digital on me?

So there we all were, getting very comfortable in our open innovation activities, learning to collaborate and co-create outside our organizations. We had worked through some of the cultural stuff; we had established the process, practice, and tools. We even had our legal teams on board, helping sort out all the conflicting positions open can mean when it comes to dividing up the IP spoils and even had our leadership tuned in, singing our praises and even (heavens forbid) getting engaged in the process.

When the world shifts, we all need too.

Then suddenly the world shifts on its axis once again, everything seems to be digital. The buzz is big data, analytics, smart mobility, and social media, with lots of talk of interconnected devices giving us the next big paradigm in innovation growth.