Monday, September 10, 2018

Three Aspects of Leading Breakthrough Innovation

The path for innovation blossom can be iterative, evolutionary, revolutionary, or disruptive. 

The highly innovative organizations embed innovation into every aspect of their organization. High performers adopt spiral approaches for managing the breakthrough innovation. Breakthrough innovation brings something new to the party - something that couldn't have been possible.

Breakthrough Innovation is a radical new approach that leaves competitions behind in some way: It's a kind of out of the box thinking. Take advantage of changes in the external environment: Breakthroughs innovations are not something everyone can accomplish. You have to systematically develop the capability to execute it successfully. Digital innovation must be a multi-disciplinary effort to connect the wider dots. Enterprises have always been parts of simple or complex ecosystems. That is the fundamental nature of the marketplace and the environment within which the enterprise functions. In order to function, an enterprise has to be linked to the many and varied “touch points” between itself and the marketplace environment of which it is a part, and something you do not accomplish overnight. Cross-industrial dot connection would add nonlinear thinking and tangential thinking provide a better opportunity for leading breakthrough innovation than linear thinking. There is a consensus that the external environment is an important antecedent of spurring innovation. It is important to capture the rising trends and take advantage of changes in the external environment to spur breakthrough innovation. The “magic formula,” (if having the one): Breakthrough/Disruptive innovation = New Users + New Products/Services. Breakthrough innovation is the most important concept in innovation because it can be demonstrated the virtually all real economic growth or societal progress is driven by disruptions.

Continually revamp their business models to achieve competitive advantage: Every corporate venture comes with a business model innovation. Taking an innovation spiral approach to do business model innovation suggests a loosely structured and circular process that allows companies to connect with the various points of the spiral in different ways and at different times, ultimately reaching an innovative breakthrough. Breakthrough innovation is a radical new approach that leaves competitions behind in some way. To disrupt you must hear the whispers of customers, contexts, inner worlds and outside worlds. Breakthrough innovation is disruptive, with high return and high risks. Often disruptive innovation changes the competitive landscape, potentially making entire industries obsolete. But breakthrough innovation can also bring significant opportunities for the business to reach the next growth cycle, and deliver the high business value.

Differentiation between incremental and breakthrough innovation relates to the degree to which a particular innovation changes the competitive landscape: As things change, the old paradigm becomes incompatible with the new reality and there occurs a digital paradigm shift. Breakthrough innovation is disruptive and will change your organization in many fields. You need new technologies, new processes, new customers, new knowledge, maybe a new business model. The more ambitious, radical, and market-changing innovations are specifically enabled by complete, systems-level specifications of all the relevant valued products or services interactions currently and potentially tied to the targeted products or services. From the marketing perspective, the management needs to make inquiries - whether organizations are able to create entirely new industries or products capable of empowering an overwhelming number of those who were previously unserved and underserved, and on that basis; or expand to displace the dominant incumbents of existing industries that were only able to cost-effectively serve far smaller segment of the greater market. If shareholders valued innovation more, and then, they would value companies that devote more resources toward future innovation more than those that optimize short-term profits.

Innovation ecosystem or the methodological environment should cover the whole innovation process, from processes in managing ideas or idea handling systems to idea implementation and promotion. Becoming a consistently innovative company requires tuning both organizational structure and culture that nurture new ideas and is able to profitably execute on those ideas and manage a healthy innovation portfolio with both incremental innovation and breakthrough innovation.


Post a Comment