Monday, August 24, 2015

How to Define, Evaluate and Implement Innovation

Innovation means something new and valuable. Innovation is relative and has a context.

Innovation has different meanings depends on the industry, but the basic concept must be the same. In a nutshell, business innovations include new business models, work processes optimization, and new products/services design and delivery, a new marketing methodology, or a new organizational experiment in business practices, workplace structure or external relations. There are both breakthrough innovation and incremental innovation as well.

Innovation is to have a new perspective on things: Innovation follows basic rules, which are adapted depending on the company's situation and ambition. The definition of innovation is simple - to gain benefit by doing something different. That's subjective of course - so what's innovation to one may not be to another. Isn't it a question of perspective? Doesn't the term innovation depend on who is the customer, who gets the new benefit, the increased value (time, quality, etc...). So revolutionary changes on subsystems might be incremental improvements on the system, which again might be a subsystem to an even bigger system, design changes that dramatically change consumer appeal and on and on. There is "Innovation Fatigue," the word is being thrown around a bit more often than it should. In essence, innovation is the use of something that is new and unique, and you are able to create its business value.

Identify and groom innovation leaders and innovation practitioners (idea creator, facilitator, and implementer): Innovation practitioners are the people who identify, develop, select and implement the projects with one or two "innovation leaders," who promote the culture. Innovation is a creative process that often leverages an intensive technology to solve a real or potential problem of a society that breaks with the current standard and has technical and economic feasibility. But as we all know we don't live in an ideal world where we can pick the perfect innovation team. We've deliberately aimed our courses to be practical for any company who wants to enable the continued growth through innovation, by utilizing the experience, knowledge, competencies, and creativity within the entire workforce. You will most likely find the people who suggest the most creative ideas happen to be different from those who implement the projects. So it’s important to identify idea creators, idea facilitators, and idea implementers, and give them effective training and get the best out of the rest of the organization.

Value enhancement for the user is important to evaluate innovation: It’s about knowing that this enhancement might be a matter of perception, and increasing value might be reached by alternative ways. Ideality ( the same as the definition of value) is for assessing those possibilities and build a map of step changes on the way to one or more "disruptive concepts."

 More specifically, you can evaluate innovation in two ways:
a) In terms of company history, when you evaluate how the company produced or implemented new solutions that were totally different from its “business as usual.”
b) in terms of market evolution, that is a truly breakthrough solution, a radical or disruptive innovation in the market. When a company "think differently," and implement new ways to solve problems, and then you have innovation.

Innovation is a crucial component of your strategy. Therefore, you should always be aware of the strengths and weaknesses, opportunities and threats. Innovation means something new and valuable. Innovation is relative and has a context. The key to innovation success is just as simple - innovation is nothing without exploration and exploitation.


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