Place Your Future Bets – Invest In Innovation Capital
Recognizing the value of our innovation-related assets is where the smart money should go, and then we need to invest in innovation capital. To gain growth and improve productivity is through innovation. We need to translate knowledge into new values.
When you pause and consider the make-up of Innovation Capital you realize it makes such an economic contribution and in a report from McKinsey & Co, they have set about identifying this to produce the above summary, covering 16 countries, to understand the real value of this Innovation Capital.
These numbers are big and still don’t fully capture everything associated with innovation as much remains ‘hidden’ or ‘attached’ to other activities as well.
We need to shift our thinking on what makes up Innovation Capital
Exploring Diffusion and Adoption of Innovation – Part 2
The future within our engagements will determine diffusion and adoption
It is all about letting go but also grabbing more at the same time, and then finding ‘it’.
Technology has opened up the door to both scale and fragmentation and social business is the one pushing through this open door.
We are increasingly facing the Collaborative Economy everywhere we turn. Social business is becoming the denominator of success or failure.
We are needing to confront the new questions that are emerging
New rules are emerging – you could say new theories – and where are these fitting within the corporate mindset?
Opening up the Stage-Gates to let the new innovating world in?
There is no question the Stage-Gate process has had a significant impact on the conception, development and launch of new products.
Yet there have been consistent criticisms of it, as the world of innovation has moved on. Today it is faster-paced, far more competitive and global and become less predictable.
The cries of the Stage-Gate process as being too linear, too rigid and far too planned, bordering on prescriptive have often been heard. The gates are too structured and the constant ‘creep’ of the controlling bureaucracy surrounding it in paperwork, checklists and justification has simply led to so much non-value-added work added to the moans and groans.
Surprisingly, the Stage-Gate concept was created in the 1980’s and led to Robert G Cooper’s different evolutions of this evolving and absorbing many new practices and experiences gained by different organizations across this time.
I wonder who is withering on the innovation vine?
This week I tuned into the Pipeline virtual conference for product development practitioners and gained an encouraging feeling that innovation is progressing along nicely.
Packed all within a day there was plenty of material ‘fodder’ to feed off of and learn from.
A really good conference but what quickly followed was a strong dose of that withering on the innovation vine.
I read two consulting surveys on innovation
I’ve been suddenly pulled out of my virtual bubble back into the harsh realities of where innovation really is. Just simply how innovation is struggling and that lies far more at the top of our organizations than below, those below who are simply trying to ‘get on with the job’ but with at least one hand (or even two) tied behind their backs.
I have been reading two sets of observations, one from Fahrenheit 212, the other from Innosight and my mood began to change. I’m suddenly back in reality where we have this huge gap between those ‘working’ innovation and those at the top simply not engaging with innovation or still failing to understand it or even failing to connect the dots.
Make Virtual Room In Your Innovation Pipeline
So what are you doing this Friday, June 6th 2014 to help in your innovation pipeline thinking?
Fancy joining me and up to 2,000 others that are expected for an Innovation virtual conference.
One that has been constructed around an agenda, made up of a seemingly good mix of practitioners, a key-note or two and product development experts working through the end-to-end product development process, or selected bits of it, in a one-day event.
Crossing over the crossroads of conferences
Innovation conferences are for me at least, at a crossroads. I find many jaded, struggling to justify the costs and commitment of time we need to put in to participate, often in one way dialogues.
Building an innovation framework that has real capabilities as its formula as its heart.
I’ve strongly believed when you begin to think through a framework for innovation, see my last article as an example, you also should equally need to recognize the capability framework that you will need to build into this.
Working through these as essential combinations can become the real enabler.
Here is my solution that I think is worth working through, to firstly absorb and then consider for applying to your own innovation building activity. Try it!
I have worked on a formula SCA = II + OC + EE + MLC + RNE for this. I have never published the make-up of this in the public domain before, although I had briefly outlined it in a past post here.
In that post I outlined my thinking and I do not think it needs repeating, does it? So onward…….
So what drives value creation?
I seem to be reading a lot about the concept of value creation recently.
It seems to have the same ‘heady vaulted position’ as innovation in that we all talk far more about the ‘promise’ of it. So what is behind value creation?
What drives it? What will allow us to stand out as the place to invest in?
So what is value creation?
Value creation is highly dynamic, it is going on all the time and can increase, decrease or transform in different ways when you exploit your different capitals that will change and reflect your organization’s business activities and eventual outputs.
This is when you can begin to see the value created by the use of deploying all the capitals.
Are we measuring what really matters?
Today, it is the non-financial performance, made up of mostly the intangibles within organizations, that is accounting for upwards of 80% of present investors’ valuation of our organizations so are we measuring what really matters?.
Yet do shareholders really have the knowledge to judge the real source of value creation inside our organizations? I think not but they should. Does Management actually themselves, equally I often think not?
We lack a real line of sight into the true value of our organizations.
That sheer consulting muscle hopefully delivering global momentum
Has consulting changed over the years? Certainly the business model behind them has, big time.
I really do wonder where it is all going inside the business organization.
Consulting has become a huge business dealing with our global and local organizations and governments.
Just take a peek around the board room doors, just who are all those strange faces, bulging muscles, huddled in meetings with the boss? Ready to take on the world.
Following on from my recent post on “the value of the visiting consultative fireman” this further post explores the external reliance on the consultant our organizations have become accustomed too. It got a little long, my apologies for that.