Wednesday, January 29, 2020

The Crucial Components of Innovation Management

Different types of innovation should be managed via tailored management processes and scientific resource allocation. 

Information is growing exponentially and technologies are changing very rapidly, innovation is no longer nice to have, but “must-have” business competency to survive for the future. Everyone in the leadership team has a gift and digital organization is very complex. The exercise of deciding just what innovation is within each organization is one of the most critical activities of an innovation effort.

Working in an innovation garden not only takes passion but also needs to work hard, cultivate a culture of creativity, and develop a systematic innovation management discipline with crucial components and improve the overall innovation management success rate.

Prioritization: Organizations have limited resources, prioritization is about managing constraints. Innovation managers need to check periodically: You can't do everything; so which business initiative will you pursue? What are your practices for the best use of resources and how to manage innovation effectively? Forward-looking organizations build a system that can "smell" the right idea at the right time and place, make it tangible, and achieve their business values.

Prioritization brings transparency and creates internal competition among new ideas. It helps to focus on the strategy of the organization, which has huge benefits in terms of execution. In practice, there is no way to create a definitive prioritized list without more business context., it’s important to build business innovation strength and capabilities by prioritizing resources and managing risks. Building a balanced innovation portfolio is a practical approach for optimizing resources and improving risk intelligence.

Process: Innovation is not serendipity, it’s a management process and discipline. Make innovation processes as visible and company-wide as possible. Innovation is a high mature digital capability that needs to be built via scientific disciplines, structures, processes, and practices. The ability to innovate consistently and achieve sustainable innovation results continually does require some degree of a “hard-wired” innovation system with multidisciplinary knowledge such as economy, technology, psychology, sociology, and law, etc.

The main barriers to innovation are silos, rigidity, inflexibility, static process, or bureaucracy, etc. Innovation processes need to be flexible and dynamic, require much more effective collaboration to minimize cost and manage risks, so the right level of guidance is important, but the overly rigid processes, inflexible structure or too “pushy” goals stifle innovation. As processes yielding results, innovation and efficiency can complement and enhance each other. Organizations can reach a high level of business innovation maturity by relying less on silo functions, more on cross-functional collaboration and continuous deliveries of innovation benefits.

Resource: The essence of innovation is about how to manage people, assets, and resources to meet the business goals for innovation. Resource management becomes an important management discipline to improve innovation effectiveness and efficiency. The resource needs to be assigned scientifically, to make sure that your company has a steady flow of fresh ideas floating in your innovation pipeline, and you need a methodological platform that allows you to do that in an efficient way. 

How resource allocation is determined should be understood by all-important business parties, and innovation management needs to break down resource bottlenecks and manage a well-rounded innovation portfolio effectively and efficiently. An effective resource allocation scenario helps to take advantage of resources effectively, optimize cost, set priority, keep process transparent, and bridge talent gaps to improve innovation management maturity.

The greater the efficiency of an organization, the greater the need is for innovation. There are many ways to differentiate and, therefore, there are many ways to pursue innovation. Different types of innovation should be managed via tailored management processes and scientific resource allocation. You need to make sure the right people are put in the right position with the right talent to manage innovation, frame the systematic innovation management effort to stay focus, set priority right, optimize processes, and allocate resources scientifically in order to improve the success rate of innovation management.


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