core capabilities for innovation - Building Your Innovation & Ecosystem Intelligence

Defining Innovation Capital

@paul4innovating — Thu, 21 Jun 2018 18:21:41 +0000

My definition of what makes up innovation capital:

“Innovation capital is the sum of all that promotes the development and changes required for achieving innovation outcomes, within one organization or its broader networked environment, for marketplace advantage”

“These are made up of the resources, processes, knowledge, and capabilities, that are constantly evolving and highly dynamic to build greater innovating capacity.”

“These build upon the capabilities of ‘sensing, seizing and transforming’ to build new capital that focuses more upon the dynamics within innovation, that provide the true value creation in successful outcomes in the final product, services or executing within business models”

We need to value both “stocks and flows” in equal attention to build innovation capital

The ‘stock’ of innovation capital can render different productive value outcomes, is a bundle of the firm’s resources/assets and holds the renewal capabilities and they possess attributes that make it a “strategic asset”

Innovation capital is made up of many different assets that are often context specific, and interconnected and this makes it hard to build without taking a broader, more holistic approach to developing your capabilities, capacities, and competencies to innovate. You ‘map’ and align these to fit your strategic goals and aspirations.

We have a pressing need to clarify a new ‘valuing model’ for building innovation capital and each organization has a unique bundle of the firm’s resources and assets. It is the ability to integrate, reconfigure, renew and recreate these resources and turn these into new, more dynamic capabilities that build on a continuous basis the innovation capital.

This is one of my most important focus points to assist and aid organizations in their understanding “what makes up their unique innovation capital” and what needs to be added to deepen and strengthen this capital stock.

Building our stock then leads to the flow that then leads to building more stock. We need both stocks and flow

Most of our capitals are learning capitals

The more we strengthen our knowledge and value our people the more we can generate new knowledge, build greater narratives, deepen discussions, make better connections and build our interactions out across growing communities. The more we discover, the more knowledge we gain and this leads up to determine a potentially better decision-making that should, in theory, give greater confidence that our invested financial capital is in ‘good hands’. Our knowledge learning, the more dynamic, the more we search, absorb, called absorptive capacity and then diffuse, the more valuable it becomes.

The power lies in the linkages we can forge, in the acquisition, in assimilation and then into the eventual transformation that allows known knowledge to become new wealth-generating innovation.

My stated value position is…

I provide different framing techniques for helping to grow this necessary innovation capital and build the stock of the capabilities and capacities to enable and increase the dynamic flow of innovation activities.

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Understanding Your Innovation Capital- Well Do You?

@paul4innovating — Thu, 14 Jun 2018 15:16:15 +0000

If someone came to you and asked the question: “tell me what makes up your financial capital?” I expect you could answer this fairly comfortably. It might need a little added help from your finance department but you could produce and show significant details that we are all ‘schooled’ to understand and generally have accepted, as under common definitions and standard practice.

Our businesses are measured constantly on their financials, we produce a constant flow of reporting documents that provide useful insight and allow for a more informed judgement by present and future investors on the health of the company.

We are ‘wedded’ to our financials and ignore the real value within our organizations of all the other critical capitals that generate and strengthen the business, yet these are the MOST valuable to leverage.

What if that same person came to you and asked instead: “what makes up the innovation capital of the company?’” could you answer this as clearly as the financial one? I would suggest most probably not. (By the way, if you feel you can then please let me know I would be more than interested).

We are focusing far too often on past performance and not future generating potential. We constrain ourselves, our growth and our potential by staying fixated on just the financials, constantly worried over the short-term results and not equally building and developing our capabilities for the future, this building capabilities and capacities begins to makes up our future organizational capital.

So what does makes up our innovation capital and why is it important to know?

Should we care, does it matter? I would argue it does, increasingly so. Within the innovation capital lies the future of the organization and holds one of the real golden keys to the sustaining performance of the company, or not.

The generally accepted view is that Innovation boosts a company’s earnings, speeds growth, ensures an advantage over competitors, and greatly appeals to shareholders. Put another way, businesses that deliver earnings growth based on a continuous stream of new products and services and new ways of doing business capture the innovation premium.

So tell me, why are we seemingly so bad at identifying what actually makes up our innovation capital, apart from some sweeping generalized statements attached in the accompanying comments within the financial result statements?

We need to find a way to unlock this as we are constantly being pushed for new business models that create, deliver and capture value. It is in the entire make up, the value structure around the offering, and this is made up of distinct capitals that drive the new business towards success.

Do you really want to discover what makes up your innovation capital? Then why not talk to me and begin a journey that builds a far better sustaining future where growth and value creation become far more realizable.

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Understanding that innovation capital becomes your new core

@paul4innovating — Mon, 11 Jun 2018 15:22:12 +0000

Much of my focus within my work is to move organizations towards recognizing and expanding their innovation capital or stock.

The hard part for many organizations is that many of the key elements of innovation capital consist of many intangibles as well as tangibles and this needs deeper understanding and appreciation. These intangibles are in most cases non-technological and embodied in the organizational routines and thinking of the employees.

It is focusing on building the stock of this innovation capital as well as making the flow more dynamic, ever evolving, adapting and changing to the different conditions being presented to the company.

Some of the critical elements that need to be considered can be described as follows:

• Innovation strategy that relates to strategic choices a firm makes regarding its innovation
• The selection of the type of innovation that fits best the firm’s objectives and the allocation of resources to different types of innovations.
• Innovation culture that is the mixture of the innovation-related attitudes, experiences, beliefs and values of the employees
• The integrating function of environment, culture and climates that stimulates innovation activities.
• Innovation structure that are formed to make up the innovation process, its governance and supporting intent
• The approach within the organization and the way the employees engaged in the innovation and how they are grouped and measured
• Knowledge (technological and non-technological) possessed by the employees engaged in the innovation process as much of the knowledge is tacit to varying degrees.
• The stock of knowledge can be increased by internal and external learning of an organization

It is the abilities of our internal learning as ongoing provides the creation for new knowledge within the enterprise.

Stocks and flows need equal attention to build innovation capital

The ‘stock’ of innovation capital can render different productive value outcomes, is a bundle of the firm’s resources/assets and holds the renewal capabilities and they possesses attributes that make it a “strategic asset”

Innovation capital are made up of assets that are often context specific and interconnected and this makes it hard to build without a broad holistic approach

We have a pressing need to clarify a new ‘valuing model’ for building innovation capital and each organization has a unique bundle of the firms resources and assets. It is the ability to integrate, reconfigure, renew and recreate these resources and turn these into new, more dynamic capabilities.

I provide different framing techniques for helping to grow this necessary innovation capital and the capacity to enable and increase the dynamic flow of innovation activities.

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Peeling away the terrain of innovation reality

@paul4innovating — Fri, 21 Apr 2017 12:12:07 +0000

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.

We call this “mapping the terrain of where you would like to be.” Your preferred place after you have accessed the competitive situation and what needs to differentiate yourselves, by being realistic about your present operational performance and a rigorous evaluation of how you can perform.

This is asking those searching questions around whether you have the commitment, resources, and determination to make a significant change in changing your capabilities or capacities to innovate. How are you both internally coping in an era of challenging technology change conditions but equally how you are seen to be externally coping with the pressures, rigors, and changes occurring in your marketplace.

You need to arrive at your preferred place after you have accessed the competitive situation and what needs to differentiate yourselves and being realistic about your present operational performance and a rigorous evaluation of how you can perform, whether you have the commitment, resources, and determination to make a significant change. How are you internally coping but equally how you are seen to be externally coping with the pressures, rigors, and changes occurring in your marketplace.

Arriving at a clear point of view

The intent is that we have to arrive at a clear “point of view” of both the reality of where you are and where you would like to be. These have to be explicit, to achieve a conscious awareness. I believe we have to go through some very specific and recognized steps, I outline the nine stages we need to work through the process here. These stages are a mixture of discussion, investigation and structured analysis and diagnostics.

This set of reality checks needs a clear, defining pathway in how the organization will need to change, a level of clarity of how you see your innovation capacity is not at the required level. Then we identify and describe the required outcomes of ‘fitness need’ of the structured work to be undertaken through the different parts of the Innovation Fitness Landscape assessment, establishing those capabilities you are likely to need, the more innovation dynamic capabilities. It is establishing these, that drive your innovation performance towards your stated needs and goals, ones to close the gap in present capabilities and required ones.

This moving from the present to the preferred requires this journey across the mapped terrain and the nature and character of that journey needs to be clarified, on what is needed from you and all the people involved to achieve your (transformation) goals. Those growing innovation dynamic capabilities become part of the enduring strategy that informs all those involved and mobilizes all that is needed to get you into this new innovation position.

The greater innovation fitness you achieve equates to more value creation potential you can generate.

These are the search for your dynamic points for innovation. These are unique to you, they make you distinctive. They lead you to new growth, new creations, new opportunities to innovate. You evolve. You constantly look to combine in different ways to stay ‘dynamic’ and sustaining. We are setting about building your innovation capital.

If you would like to learn more, then please contact me and we can set up a clarifying conversation to talk through this specifically, related to your unique position. Contact me at paul@agilityinnovation.com

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Understanding Your Innovation Capital- Well Do You?

@paul4innovating — Fri, 24 Jul 2015 13:17:40 +0000

So what does makes up our innovation capital and why is it important to know?

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Delivering the innovation core: building capability, capacity and competency.

@paul4innovating — Thu, 14 May 2015 14:12:44 +0000

Each organization needs to understand its strategic resources to build continuously innovation, so as to sustain and grow the organization; otherwise, it will eventually die, starved of what is vital to sustaining itself.

The resources provide the lungs that give oxygen; they need to constantly be nurtured, too breathe and pump new life into the existing.

For innovation the same applies, we need to consistently build our innovative resources, they give delivery of the healthy living cells to promote and sustain us in new value potential.

The problem is we often are not very good at maintaining our resources and innovation activity. We just simply do not sustain our efforts, we tend to allow them to drift along or become lopsided from one individual team’s efforts, while the others simply ‘wallow’
Equally, organizations rarely set about designing the right conditions, working towards the innovation environment that ‘delivers’ a particular state of being, so as to allow something positive to happen, it is just expected to happen. Do we even bother to check for the real pulse of our innovation efforts?

My belief is if we do not have a constant working and reworking of these conditions we can’t honestly expect our organization to build the capacity, capability and competency we need for innovation to take hold, embed and becomes the long-term driver of the growth our organizations need and desire. We need to design a more sustaining effort

How do you develop the capacity to be exceptionally good every day? It is this constant focus on building the capabilities that matter, yet often we are not aware of those that significantly contribute, against those that are necessary to have or simply those that we need around to maintain what we have achieved.

Combining capability with capacity and competence becomes essential.

It is the combination effect of skills, organization abilities, processes and learning that combines to get things done. They individually and collectively impact performance.

Are organizations clear on what makes-up their core competencies? Do they constantly evaluate these within a consistent evolving set of changing market conditions or are they rather static, inwardly driven and not outwardly aware?

I have been working on for some time –actually it seems for ever- on a framework that separates the static needs of working innovation with the more dynamic ones that make the difference and provide the abilities to turn every-day activity into more distinctive, breakthrough, radical or disruptive innovation outcomes.

This work-in-progress I keep building upon,can be explored on a dedicated web site of www.innovationfitnessdynamics.com.

We do need to plan a capability maturing pathway so as to move our capabilities and competencies through from often a current ad-hoc state.

We need to turn these into a more formalized and predictive, planned out state, which brings a more integrated approach so as to extract any synergies but allows for a decent level of autonomy to grow individuals, yet build teams that constantly ‘form’ and reform to tackle the challenges the innovation opportunity presents to bring those to successful fruition in better ways.

Organizations seem not to learn from common mistakes
The amount of inconsistency in innovation (fits and starts) ,the turning off and on holds the building of our capabilities and competencies to innovate continuously back.

We do need to have a consistent, well-thought through plan for innovation development within organizations that is a resource development plan that has its distinct budgets, plans and dedicated group that is accountable to deliver on these plans, updated like all others within the normal planning cycles of the organization.

Innovation needs to be central within the new business core

When are we going to recognize that innovation should be a real core of our organization’s makeup? I wrote a three part series about “moving innovation into our core” (here, here and here)

I concluded with the emphasis on technology within all our organizations that we are in need of a radical newly designed Enterprise-wide innovation process. One that is embracing and adapting constantly to all we have been learning about how innovation works and what technology, digital, networks, relationships and social streaming brings that all need to be fully integrated within this redesign.

Innovation requires increasing agility, flexibility and allowing creativity to flourish on a constant, evolving basis. Today, innovation often stays outside the mainstream system and operational structures, often to it’s and the organizations detriment. as it is seen as something that does not fit the ‘norm’. This is today’s innovation problem

Innovation needs to be fluid, open, responsive; sometimes reliant on the instinct, hunch or powerful insight that is never ‘predictable’ but suddenly emerges from a collision of events, or random thoughts that lead to a new insight, a game changing one. It is really hard to turn this ‘randomness’ or serendipity into a system but certainly not impossible.

How are we going to design our innovation capabilities, competencies or capacity unless we fully recognize the dramatic changes in business that are now underway and what this needs to be addressed, to allow for a more responsive, fluid, agile and adaptive culture, to flourish and respond so as to generate the better innovation of the future we need.

Recognizing differences
There are real differences when it comes to building innovation understanding and equipping your organization to perform at improved levels. There are different traits, actions and activities to think through.

Here are some of the needs:

* We need to build far more serendipity into what we do, also random connections, as well as purposeful discovery, by seeking out increasing connections and engaging in networks of learning and mutual exchange.

Places where we are turning curiosity into reality and building our innovative mental abilities for growth, development and accomplishment, opening up and being receptive and then translating this into new innovation.

* We need to embed into our new innovation core new routines and thinking. It is determining the changes needed by those new combinations of fusion by seeking out the chemistry from all the connections and exchanges, pushing for creative collisions, positive tensions and dynamics to engage fully in innovation, so the culture, climate and environment are vibrant, challenging and exciting.

* We need to constantly seeking the new space from knowledge exploitation and exploration, redefining the organization edges, enlarging and enhancing our understanding, pushing constantly out, constantly evaluating, discovering and aligning growth options and then seeking out those outcomes that potentially offer the right return on innovation

* We need to place learning into the centre, to allow our capability building, new competencies to grow and evolve. We focus on the constant need to provide the mechanisms so as to improved performance and capacities by focusing on both our mental and physical abilities to our position and function to explore and exploit. Each contributes to our ability to receive, hold and absorb new knowledge. We measure these by the increased volume and quality outcomes

* We need new structures, attitudes, investment and motivation to change, to focus on innovation building that needs instilling and coming from the top, not just as a commitment that must happen but integrated and aligned into the strategic thinking and planning, worked through a clear pathway of change to achieve a different, core innovation capability..

* We need to determine the abilities to deliver in effective, focused, efficient and aligned ways. Knowing what is important, seeking out the actions to support and deliver the part needed to achieve the desired goals. Adjusting as we go, as we learn, ramping up what is working, dampening down what is clearly not.

* We need to build innovation by working it continuously, on making our environment into this more evolving and dynamic one, where the climate and culture of innovation thrive and grows from this constant feeding and attention.

In summary
The more we focus specifically on what makes up our innovation competencies, capabilities and capacities, delivering the dynamic ones that give innovation impact, the more we are able to comprehend what is important, produce added value and transform from what we have known into what we can see differently, opens us up more into the world of innovation possibilities..

It is developing the skill, knowledge and ability (or capability, capacity and competence) for innovation to deliver on its promise to sustain, grow and provide new value-adding outcomes that take the organization forward and it can no longer be haphazard but systematic and purposeful.

The post Delivering the innovation core: building capability, capacity and competency. first appeared on Building Your Innovation & Ecosystem Intelligence.

Building bridges between stocks and flows

@paul4innovating — Wed, 04 Feb 2015 08:47:08 +0000

I really enjoyed this thinking about stocks and flows that are necessary.

Let me share the part that works really well for me. This relates to approaching social media but it equally applies to building innovation capital, it is recognizing and then building the stock and the flows around innovation.

Robin Sloan does a brilliant job of explaining this:

“One of the biggest takeaways was the concept of stock and flow. Do you know about this? Couldn’t be simpler, and really, it’s not even that much of an a-ha.

There are two kinds of quantities in the world. Stock is a static value: money in the bank, or trees in the forest. Flow is a rate of change: fifteen dollars an hour, or three thousand toothpicks a day. Easy – too easy.

But I actually think stock and flow is the master metaphor for media today. Here’s what I mean:

• Flow is the feed. It’s the posts and the tweets. It’s the stream of daily and sub-daily updates that remind people that you exist.
• Stock is the durable stuff. It’s the content you produce that’s as interesting in two months (or two years) as it is today. It’s what people discover via search. It’s what spreads slowly but surely, building fans over time.

I feel like flow is ascendant these days, for obvious reasons—but we neglect stock at our own peril.
I mean that both in terms of the health of an audience and, like, the health of a soul. Flow is a treadmill, and you can’t spend all of your time running on the treadmill. Well, you can. But then one day you’ll get off and look around and go: Oh man. I’ve got nothing here.

But I’m not saying you should ignore flow! No: this is no time to hole up and work in isolation, emerging after long months or years with your perfectly-polished opus. Everybody will go: huh? Who are you? And even if they don’t—even if your exquisitely-carved marble statue of Boba Fett is the talk of the tumblrs for two whole days—if you don’t have flow to plug your new fans into, you’re suffering a huge (here it is!) opportunity cost. You’ll have to find them all again next time you emerge from your cave.

You can tell that I want you to stop and think about stock here. I feel like we all got really good at flow, really fast. But flow is ephemeral. Stock sticks around. Stock is capital. Stock is protein. And the real magic trick in 2010 is to put them both together. To keep the ball bouncing with your flow—to maintain that open channel of communication—while you work on some kick-ass stock in the background. Sacrifice neither. It’s the hybrid strategy.

Anyway: this is not a huge insight, I know. Mostly I just wanted to share the lingo, because it’s been echoing in my head since my first microeconomics course. Today, whenever I put my hands on the keyboard, I’m asking myself: Is this stock? Is this flow? How’s my mix? Do I have enough of both?”

Source: Robin Sloan http://snarkmarket.com/2010/4890

He also added “You’re totally right about the interplay; when everything’s working together, stock leads to flow leads to stock”. “Building bridges between stock and flow”

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Defining Innovation Capital

@paul4innovating — Tue, 03 Feb 2015 14:44:49 +0000

My definition of what makes up innovation capital:

“These are made up of the resources, processes, knowledge and capabilities, that are constantly evolving and highly dynamic to build greater innovating capacity.”

“These build upon the capabilities of ‘sensing, seizing and transforming’ to build new capital that focus more upon the dynamics within innovation, that provide the true value creation in successful outcomes in final product, services or executing within business models”

We need to value both “stocks and flows” in equal attention to build innovation capital

The ‘stock’ of innovation capital can render different productive value outcomes, is a bundle of the firm’s resources/assets and holds the renewal capabilities and they possesses attributes that make it a “strategic asset”

Innovation capital is made up of many different assets that are often context specific and interconnected and this makes it hard to build without taking a broader, more holistic approach to developing your capabilities, capacities and competencies to innovate. You ‘map’ and align these to fit your strategic goals and aspirations.

We have a pressing need to clarify a new ‘valuing model’ for building innovation capital and each organization has a unique bundle of the firms resources and assets. It is the ability to integrate, reconfigure, renew and recreate these resources and turn these into new, more dynamic capabilities that builds on a continuous basis the innovation capital.

Building our stock then leads to the flow that then leads to building more stock. We need both stocks and flow

Most of our capitals are learning capitals

The power lies in the linkages we can forge, in acquisition, in assimilation and then into eventual transformation that allows known knowledge to become new wealth-generating innovation.

My stated value position is…

The post Defining Innovation Capital first appeared on Building Your Innovation & Ecosystem Intelligence.

Understanding that innovation capital becomes your new core

@paul4innovating — Fri, 30 Jan 2015 16:24:57 +0000

Much of my focus within my work is to move organizations towards recognizing and expanding their innovation capital or stock.

Some of the critical elements that need to be considered can be described as follows:

It is the abilities of our internal learning as ongoing provides the creation for new knowledge within the enterprise.

Stocks and flows need equal attention to build innovation capital

Innovation capital are made up of assets that are often context specific and interconnected and this makes it hard to build without a broad holistic approach

I provide different framing techniques for helping to grow this necessary innovation capital and the capacity to enable and increase the dynamic flow of innovation activities.

The post Understanding that innovation capital becomes your new core first appeared on Building Your Innovation & Ecosystem Intelligence.

Knowing your innovation core

@paul4innovating — Sun, 13 Oct 2013 09:45:17 +0000

I think we all recognize that innovation is made up of both tangible and intangible assets. It is the marriage of these two that makes innovation a unique capability to manage in well-structured ways. It is the people engaged in innovation activity that make it work. Everything else, the process, structures, technologies and management systems are just the contributing enablers.

Appreciating what makes up the Core

The important point though is successful innovation has core elements and processes regardless of industry, form, or type of innovation, we are pursuing. Much of the difference though is in its varying degree’s based on these core elements.

Our search must be to find those core elements that make up the dynamic capabilities within our innovation activities to leverage and strengthen them. We need to build an organizations ability to innovation continuously, making it a sustaining competence.

We, in our organizations strive to achieve distinct competitive advantage, and innovation is one of those real contribution points this can do this. Achieving competitive advantage is increasingly transient.The need is to make the innovation capabilities and capacities a distinctive, not easy to copy, unique set that continues to be challenged and refreshed to meet the constant changing conditions we find in today’s market .

These capabilities and capacities are shaped by the context and content of innovation and this constantly change by the shifts taking place within the organizations position (market, price, competitive stance) and its choice of evolutionary paths it has decided to take or needs to take.

Innovation needs to be a constant evolutionary path, nothing stands still, it is constantly changing.

Innovation and all its ‘make-up’ is dynamic, it requires this constant evolving. This is an area of serious under-development at present, when you compare this with the continued focus on investing in physical assets or the consistent building of many other skills required within organizations. Yet innovation, the source of fresh growth remains significantly under-invested in, within the majority of organizations. This needs changing.

We need to know what makes up our innovation competencies, capabilities and capacities that give us today’s performance and then we need to decide and focus upon those that will give us a different, more dynamic performance for our future. We can’t stand still, we must look to evolve but lets do this in thoughtful, systematic ways, not in those knee-jerking ways so often seen. We need to know all of what makes up our core.

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