innovation assets and hidden intangibles - Innovation Thinking and Resources

Holding the innovations of the future back

By @paul4innovating March 7, 2015Capabilities and Capacities, Dynamic capabilities, Exploratory Walks & Needs, Impact & Scale, Mapping & Rugged Terrains, Outcomes & Expectancies, The Big Challenges

I clearly believe we do need to understand the strategic importance of the make-up of our innovation capital, yet presently nearly all our corporate boards lack any clear line of sight into this. Why?

Not understanding what makes up the capital is holding innovation back. We are actually constraining growth through this lack of understanding as it makes us all cautious of the future.

If we don’t fully understand the make-up of all our capital should we invest or divert resources to delivering on it? I think it is high time we did.

So what 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.

What makes up your innovation capital?

By @paul4innovating February 25, 2015Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, Building Innovation Capability, Fresh thinking, gaining innovation momentum, Innovation strategy, Integrated Innovation Thinking, Shifting dynamics in innovation, Tackling innovation, Uncategorized8 Comments

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, 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.

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 more on past performance and not future generating potential by staying fixated on just the financials within all that makes up our organizational capital

So what 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.

So what drives value creation?

By @paul4innovating May 9, 2014Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, Building Innovation Capability, gaining innovation momentum, innovation execution delivery, Integrated Innovation Thinking, Leading innovation, Polymers, Shifting dynamics in innovation, Tackling innovation

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?

By @paul4innovating May 8, 2014Achieving innovation engagement, Advancing innovation, amplifying the innovation signal, Building Innovation Capability, gaining innovation momentum, Integrated Innovation Thinking, Leading innovation, Shifting dynamics in innovation, Tackling innovation

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.

Where innovation value resides

By @paul4innovating December 18, 2013Achieving innovation engagement, Advancing innovation, Building Innovation Capability, Innovation strategy, Leading innovation, Shifting dynamics in innovation, Tackling innovation

Often surveys and reports catch you by surprise. I’ve been working through the Imaginatik Global Report called “The State of Global Innovation for 2013” and certain parts did exactly that. The sheer difficulties that organizations seem to have to quantify the benefits and value achieved through innovation worries me.

I had previously provided a review more on the Strategic and readiness part of the Imaginatik report, in my post “The coming age of innovation in 2014 and beyond” and less so on the other part discussed, the Process and Execution part.

It is the process and execution side that have more of the deeper issues to tackle and more importantly, the one’s that take considerable time if you are tacking culture and the environment to allow for innovation. They are far more complicated to provide answers too. I feel like pushing this along, here goes:

Visualizing the innovating future through narrative reporting

By @paul4innovating October 27, 2013Achieving innovation engagement, Advancing innovation, Building Innovation Capability, Integrated Innovation Thinking, Shifting dynamics in innovation, Tackling innovation

The push for narrative reporting

How do we capture all the activities that have the potential to generate wealth within organizations? Most remain hidden as they lie within out knowledge-based capital. This the second part of two posts (part one here) discussing our need to capture and report on ALL our assets, both the tangible and intangibles.

Knowledge-based capital today is more important to understand in its make up than often the reported financial numbers. One generates the other and investors need to see what goes into an organizations knowledge capital to provide them with continued confidence or not.

Recently the OECD provided an extensive report on “Supporting Investment in Knowledge Capital, Growth and Innovation”

I spent a fair amount of my time this last Saturday working through this document from the OECD. No, it was not because I had nothing better to do, it was simply because it ‘points’ towards one area I totally believe needs resolving, capturing knowledge and where it resides and how it works.

Then we can begin to place increased focus upon improving the capabilities and capacities we all need for innovation to do its necessary work, that of regaining our growth and vitality in many markets. The problem is we often do not know which are the most valuable or critical to focus upon.

Pushing towards a new frontier, visualizing the future.

By @paul4innovating October 26, 2013Achieving innovation engagement, Advancing innovation, Building Innovation Capability, Improve Collaboration & Communication, Leading innovation, Shifting dynamics in innovation, Tackling innovation

We all know that innovation is hard to measure as often we face a new frontier to take our ideas beyond the existing. Assessing innovation capabilities can be particularly hard as they are made up of so many intangibles.

We need to frame these capabilities in much better ways, as they mostly remain shrouded in mysteries to render it difficult to know what each business actually needs to invest in, to achieve their goals.

Knowing what and where they need to improve their innovation capabilities becomes a critical need to know point for gaining unique competitive advantages.

So much of innovation activity is left to chance and it leaves all involved as vulnerable, open to being beaten to the next ‘big’ innovation breakthrough. I would strongly argue that organizations should build their innovation capabilities in systematic ways, yet few do, let alone understand what this truly means. We simply need too.

Understanding the ‘beating heart’ of organizations

One of the biggest gaps is trying to put a finger on the pulse of what makes up innovation. So much of the capabilities are intangible, locked up in those intellectual capitals of the organizations.