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”

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.

Our inabilities to adapt needs changing.

TransformationErosion is everywhere, it just seems inevitable, we somehow get caught up in the process of time and our organizations seem to ‘freeze’ before our eyes, then simply age.

They become fixed, rigid and locked into their established ways, not adapting to the changes occurring around them. We often give up and leave, moving on to better places and challenges.

We seemingly are reluctant to undergo any transformation, experimentation or adjustment in our organizations until it becomes a matter of survival, then its often far too late.

Then it becomes a mad scramble to transform ourselves, often with damaging consequences of deteriorating performance, battling more competition that are sensing our weakness, never capable of returning to those previous highs.

We simply  hate adapting or adjusting, certainly on a constant basis, we resist any form of ‘greater’ transformation – why?

If we can’t adapt to changing times, we simply struggle to survive, that is the growing reality operating in today’s environment. Simply put companies ‘die’ due to their inability to adapt to change and transformation projects fail because the message somehow fails to register and never gets completed to the original objectives.

According to a survey by McKinsey in 2011, 72% of our transformation programs fail to deliver on their original targets. Also one out of every two of our top organizations in the Fortune 500 will be gone, history, dust, taken over in ten years, according to the OECD.

Unless we create a strategy to transform, how can we re-imagine our innovation processes?

The innovating power of ecosystems and platforms

Ecosystem 1Our whole understanding of innovation is changing; there are numerous shifts occurring.

We are moving towards a new management of innovation where ‘greater’ collaboration is fueling new business models built on platforms, formed around ecosystems of communities with vested interest, contributing and extracting value.

Today and in the future, the value is created outside the individual company and not within. It is far more working as a constellation, drawing from an evolving network effect seeking out combined solutions from this design.

This third post of an extended series on my thoughts on “moving towards a new way of managing innovation” that explores the potential for changing the management of innovation, this looks at the significant value of platforms and ecosystems.

We need to find a new way of doing things differently around innovation and its management.

This is based on a relationship-based, networked designed concept built for collective activities. Relationships where shared value leads to a value creation that no one single organization can provide.

This requires open collaboration and an environment seeking mutual promise from individual input, contribution and extraction, delivering an integrated set of services and solutions being constructed on the platform from a sharing of knowledge, for delivering into evolving value propositions, all benefiting from, both collectively and individually

I am proposing in this series a view that innovation management needs to radically adjust and will be based on the thinking around the shift from products to solutions, from transactions to growing far more value-adding ongoing relationships, from a supplier of product services into highly valued network partnerships, exploring innovation across all options, instead of delivering on discrete elements; this requires managing the whole ecosystem of the innovation design differently through technology where platforms dominate.

Shifting Radically the Innovation Business Model

Changing the innovation business model
Shifting Radically the Innovation Business Model

I have been spending some significant time questioning the current innovation business model, from both the customer’s (clients) perspective and the innovation consultants’ one.

Now we all know not all things are equal, many companies have invested significantly in improving their innovation capabilities.

Many of these have been heavily reliant on outside help in achieving this position yet all the effort has led to limited returns for many and still a work-in-progress.

Yet far more of our business organizations are continuing to really struggle on their innovation activity for a whole host of reasons that seem never-ending, disappointing in end result and stuck in management quicksand to ever really change.

For me, the process and management of innovation really does need to be definitely questioned.

The Compelling Value of the 3H for Innovation Management

The Value of the Three Horizons of Seeing Beyond
The Value of the Three Horizons of Seeing Beyond

Following on from my suggested Common Language approach to the Three Horizons, I would like to outline here its significant value, within any innovation management thinking.

Clarifying our options requires multiple thinking horizons – seeing beyond for all possibilities by listening to the different voices

For me, the three horizons have great value to bring together and  map all the different thinking and possible innovation options over changing horizons.

You can frame innovation in alternative ways by using this approach. Innovation has multiple evolution points and working with this framework allows you to significantly improve all of your innovation contributions.

It goes well beyond the present value of ‘just’ fitting your existing innovation portfolio and directional management into a typical one-dimensional view of just working in the present.

The Three Horizons – Providing a Common Language in its Innovation Use

Forming a common view of 3H
Forming a common view of the Three Horizon for Innovation

As you may know, I have been writing significantly around the Three Horizons in relationship to innovation.

Initially drawing on the foundation within the McKinsey initial papers, updated here under their enduring ideas, and in particular based on by its original authors of the book “The Alchemy of Growth” by Mehrdad Baghai, Steve Coley, David White and Stephen ColeyThen I discovered the work of the International Futures Forum, based in Scotland, where a group of members have extended the 3H significantly, well beyond McK’s initial work from my perspective, into a broader, more robust methodology tackling complex problems.

It was this IFF work that excited me, it opened up my thinking to find better ways to deepen the innovation connections and framing that could be suggested in the use of this three horizon frame in exploring and expanding different techniques and approaches.

Connecting the innovation thinking dots