Friday, November 23, 2018

The Amplification of Innovation Effect

 Highly innovative organizations can balance innovation with the order, change, and stability to improve business vitality.

The definition of innovation is simple - to gain benefit by doing something different. Innovation has to result in something which leads us to a better state than where we are today. Digital innovation has a broader scope with a full-color spectrum. In the hyperconnected and interdependent digital ecosystem, innovation can happen anywhere, anytime, it expands both horizontally and vertically. How to amplify innovation effect to benefit the widest audience of the digital ecosystem though?

Setting innovation principles: Innovation follows fundamental principles or basic rules, which are adapted depending on the company's situation and ambition. Generally speaking, to scale innovation and amplify its effect, innovation management needs to establish clear and shared business goals and set good principles to follow. The core principle of the system-based innovation is the scientific methodology, leverage the design of experiment type approaches where a portfolio of options are pursued and knowing there will be pruning as new facts emerge. Further, innovation is the most desired change. You cannot do innovation management successfully without grounding in change management or following a set of change management principles and having the top management sponsorship or people-buy-in. Change Management is essential so that individuals and organizations can benefit from the value of innovation. To scale up, it’s practical to create a set of digital innovation principles which are based on collaboration and co-creation, and set common criteria to evaluate, apply, adapt and optimize ideas for maximizing their business value.

Tuning a digital fit structure to nurture innovation: Many organizations fail to capitalize on their great ideas because there was no structure in place to manage ideas. The rigorous innovation structures are supported by the right policies and programs. Keep hierarchy as low as possible, cut the politics, and encourage creativity. A defined structure is essential to managing innovation in a corporation, but there's no single structure that will work in every organization. From an organizational structural perspective, the right structure allows the right mentality and culture to bloom. Within a well-aligned structure, dedication and effort will be spent on innovation efforts rather than overcoming organizational hurdles and pushing against structural boundaries. The structure carries inherent capabilities as to what can be achieved within its frame. But a misaligned structure might reinforce a non-innovation friendly climate. Thus, the challenge for any business is to find a successful structure that helps to empower people, enforce iterative communication, and harness cross-functional collaboration. More precisely, you don't structure innovation, you apply principles of approach, vary the resource and tool mix to amplify innovation effect.

Scale up innovation practices: Due to the complexity of modern businesses, within the organizations, innovation nowadays is rarely an individual action; rather, it is a team effort, often needs to work across multiple functional silos, and even collaborate with a business ecosystem. The challenge is to understand where and how you can and should improve to get the biggest effect and scale up across the digital ecosystem. Highly innovative organizations depend more heavily on their technological knowledge transfer and market capabilities to develop and commercialize innovations. To scale up, it’s particularly important for businesses matching their vision and tailor their own need to develop a set of best or next practices to build innovation as the differentiated business competency and amplify its effect. These innovation practices might be different across organizations, the key is “context.” If the best practice you want to adopt is to be implemented in the same context, it could work.

The success of the high-innovative organization is not accidental because innovation is a high mature digital capability which needs to be built through a multitude of disciplines, structures, processes, and practices. Highly innovative organizations can balance innovation with the order, change, and stability to improve business vitality and ensure future business growth and organizational maturity. To start the next cycle of digital innovation management and amplify innovation effect, businesses just have to learn from experimenting, scale up the best practices, cultivate innovative climate, and improve the innovation management success rate.


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