New Innovation Era

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.

 

There is a real need to think through the modern engagement platforms we require, both externally with our customers and other stakeholders, and also for our internal needs and this comes increasingly from technology solutions.

The effectiveness of our management to win the hearts and minds of our workforce is getting to a very serious crisis. A global Gallup State of the Global WorkPlace survey some time back suggests only 13% of employees are engaged in their jobs.

They are emotionally invested in and focused on creating value for the organization they work for on a daily basis. They are even outnumbered by those who are negative and even potentially hostile to the organization at a rate of 2:1. That really staggers me.

It seems so simple doesn’t it – “bringing final ideas to market”. So easy to say, yet it does seem so very hard to achieve. Everything we should be aiming at is ‘successful execution’, it’s the last, hard five yards of all the work that went into something, which can be finally realized and come to ‘commercial life’.

Here in Europe it is often suggested that “Europe is the cradle of creativity”, perhaps but I think the “United States is the crucible of innovation”, it forges ideas and takes them to market far better. In the US there is this powerful push to make money far more and to realize innovation, as clearly you must focus on the ‘making money part.’

Let’s admit it; our middle management needs a radical makeover, a new fitness regime to make us far more innovation fit. Most organizations do need to change their middles as they are far from that ‘fit for 21st-century purpose’ in a constantly changing, challenging, more open innovating world.

Here is a way to “flip” this around but lets first recognize the problem(s)

The general argument goes that the middle manager is so pressured to focus on the delivery of short-term results that all their efforts are centered far more on delivering ‘just’ an effective organization, one that focuses on driving out any excess or leeway, reduce the variations, constantly dampening down potential risk and uncertainty.

One of my favorite books is “Dealing with Darwin– how great companies innovate at every phase of their evolution” written by Geoffrey Moore. When you work through his other books and connected thinking of “Crossing the Chasm” and “Inside the Tornado” you really appreciate the learning stories coming out of his study of the Technology Adoption Life-Cycle.

We all need to rethink a lot as the new challenges come rushing towards us. In his work, Geoffrey Moore talks about ‘traction’ and I think this is a great word for thinking about how to gain diffusion and adoption in product, service or business models, to gain market and customer acceptance.

Marketing departments talk penetration, “message penetration, market penetration” and so often ‘force’ customers to become aware and then buy. Does this really work today? I doubt it. Also, many organizations hang on to old media ways to get their message across when the use of technology, the internet, and social engagement may seem harder but I believe is far more rewarding to engage with the customer on a more personalized basis. I regard this as 1 to 1 of many.

The future of our engagements will determine diffusion and adoption

It is all about letting go but grabbing more

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.

New rules are emerging – you could say new theories – and where are these fitting within the corporate mindset?

The shift of what our customer means to us, are we still competing with them, pushing them to accept a value proposition that forces them to begin to look elsewhere?

Are we still determined to hang onto control, in the (mistaken) belief we know what is best for our customers?

 

According to Professor Clayton Christensen and drawn from his book “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change, by Clayton M. Christensen, Scott D. Anthony, and Erik A. Roth. Harvard Business School Press, the only way to look into the future is to use theories.

“The best way to make accurate sense of the present, and the best way to look into the future, is through the lens of theory.” The theory of innovation helps to understand the forces that shape the context and influence natural decisions.

This might not be fashionable for many because as soon as you introduce “theory” into the discussion for many of my practical colleagues they want to dismiss it.