The right dose of tensions helps to expand the bigger thinking box and take a balanced approach to manage innovation.
The dynamic innovation perspective and creative balances allow the organization to morph into living conditions and organizational capacities change to allow a better fit for the purpose. But more specifically, how to manage the following business tensions well and improve the success rate of innovation management?
The tension between standardization and customization: On one hand, digital is the age of options and customization, building a customer-centric organization is at the top business executives’ agenda in any forward-looking organization. On the other side, to achieve operational excellence and improve business efficiency, standards are a form of embodied technical knowledge accessible to all types of business that enable more effective and efficient products and processes development. Thus, managing the tension between standardization and customization is an important management exercise to both keep the business firm and delight customers. Usually, companies need standardization of internal reasoning via the capitalization of previous experiences, cost control, convenience, etc, They are also obliged by the external environment to be flexible for meeting customers’ expectation, developing the trustful relationship with suppliers, and even building the “coorpetition” association with competitors (compete in certain areas, but corporate in other areas) in the industry. A good innovation strategy must take into account these two main poles: Improve net profit through standardization with volume, and make a new profit through innovation and flexibility with customization. A strategic approach to standardization and customization could be done either at the level of developing new products or at the processes of existing products or services. To have the gain in cost optimization, you need standardization; to have the gain from the change via value perceived by customers, you need innovation. However, the "dosage" of standardization and customization in the new product is the key, meeting target costs in the product design phase (phase engineering) is the path worth following. Consider the continuum between innovation and standardization. Imagine yourself rising above that continuum, and look down upon the balance between the two. What you've just done is to raise your consciousness of that balance, and that, in and of itself, makes a world of difference.
The tension between managing innovation and risk: Digital information and knowledge flow help to unlock latent expertise, collaborate through communities with geographically-distributed teams and arise the opportunities to innovate in the broad scope and amplify innovation influence. Shaping a disruptive innovation to fit the market often requires strategies, designs, and product introductions that build towards the long-term vision. The overly rigid processes or too ‘pushy’ goals will stifle innovation. There is also a high level of risks, due to rapid marketing changes and frequent disruptions. The more dramatic and powerful the innovation is, the greater the risk would be. Thus, handling the tension between managing innovation and risk smoothly is now part of intense management practice. Being "unruly" incurs risks, you need to set the updated principles for managing innovations and mitigating risks in a structural way. The risk is part of innovation, but you can manage parts of these risks.
The tension between applying innovation theories and experimenting with the next innovation practice: The theory is designed from actual contexts, practices are governed by theory. All practice is rooted in the theory of some kind. If the innovation theory is sound, it can help the innovation practices achieve repeatability of the outcome, increase the effectiveness of innovation management and therefore, probably increase your chances of meeting your objectives on your next attempt. Collaborative innovation needs to be coupled with the theory-based approaches for the next frontier challenges. However, the best practices are sometimes outdated sooner than you think, this is particularly true for innovation best practices. The very characteristic of innovation is about figuring out the new way to do things. When every business or function does exactly the same thing, then innovation soon becomes the commodity. Therefore, do not take the innovation theories or best practices as absolute truth. The practices that are “best” today are almost always not “best” in the future. In fact, best practices should change and evolve over time. Theory can be useful, but innovation often starts out as a creative process which is a fairly intangible skill. Thus, the tension between the innovation best practice and the next practice needs to be well-managed, new innovation practices need to be continually developed and there should always be an objective to become even better.
Innovation is one of the core activities of the digital revolution and collective human progress. That’s why innovation is more important than ever whereas technology becomes more advanced. The right dose of tensions helps to expand the bigger thinking box and take a balanced approach to manage innovation. High-innovative organizations can manage those business tensions skillfully, fine-tune innovation management as a differentiated business competency and maximize business potential ultimately.
The tension between standardization and customization: On one hand, digital is the age of options and customization, building a customer-centric organization is at the top business executives’ agenda in any forward-looking organization. On the other side, to achieve operational excellence and improve business efficiency, standards are a form of embodied technical knowledge accessible to all types of business that enable more effective and efficient products and processes development. Thus, managing the tension between standardization and customization is an important management exercise to both keep the business firm and delight customers. Usually, companies need standardization of internal reasoning via the capitalization of previous experiences, cost control, convenience, etc, They are also obliged by the external environment to be flexible for meeting customers’ expectation, developing the trustful relationship with suppliers, and even building the “coorpetition” association with competitors (compete in certain areas, but corporate in other areas) in the industry. A good innovation strategy must take into account these two main poles: Improve net profit through standardization with volume, and make a new profit through innovation and flexibility with customization. A strategic approach to standardization and customization could be done either at the level of developing new products or at the processes of existing products or services. To have the gain in cost optimization, you need standardization; to have the gain from the change via value perceived by customers, you need innovation. However, the "dosage" of standardization and customization in the new product is the key, meeting target costs in the product design phase (phase engineering) is the path worth following. Consider the continuum between innovation and standardization. Imagine yourself rising above that continuum, and look down upon the balance between the two. What you've just done is to raise your consciousness of that balance, and that, in and of itself, makes a world of difference.
The tension between managing innovation and risk: Digital information and knowledge flow help to unlock latent expertise, collaborate through communities with geographically-distributed teams and arise the opportunities to innovate in the broad scope and amplify innovation influence. Shaping a disruptive innovation to fit the market often requires strategies, designs, and product introductions that build towards the long-term vision. The overly rigid processes or too ‘pushy’ goals will stifle innovation. There is also a high level of risks, due to rapid marketing changes and frequent disruptions. The more dramatic and powerful the innovation is, the greater the risk would be. Thus, handling the tension between managing innovation and risk smoothly is now part of intense management practice. Being "unruly" incurs risks, you need to set the updated principles for managing innovations and mitigating risks in a structural way. The risk is part of innovation, but you can manage parts of these risks.
Innovation is one of the core activities of the digital revolution and collective human progress. That’s why innovation is more important than ever whereas technology becomes more advanced. The right dose of tensions helps to expand the bigger thinking box and take a balanced approach to manage innovation. High-innovative organizations can manage those business tensions skillfully, fine-tune innovation management as a differentiated business competency and maximize business potential ultimately.
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