Friday, February 5, 2021

Innovating & Intrapreneurship

It’s about discovering the new path for business growth and balancing innovation with other organizational priorities.

With frequent disruptions and high velocity, the world of business has never been more complex, as companies compete or collaborate as partners across ever-changing value chains to serve disparate and dynamic market segments. Across the industrial sectors, many legacy businesses come with a legacy mindset, the old way to do things, lack the important elements to spark vision, passion, and progression. The differentiation between high performers and average ones is innovation. Success comes to those who can bring the value that they create to the attention of their stakeholders by adopting more radically innovative approaches.

They embed innovation into every aspect of their organization: A corporation needs the processes and culture to sustain cross-boundary engagement to spark creativity and discover external ideas; most importantly, nurture a culture of innovation. Planning in some steps is ok, but chaos to some extent is necessary. If you don't cultivate an atmosphere that fosters creativity and tolerates some risks, then you will stagnate. Digital leaders and professionals need to learn how to swim in the information sea effortlessly. The thing to do is to drop the fear and grab the rope and swing out over the water and let go.

High performers adopt a spiral approach to business model innovation, suggesting a loosely structured, 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. They roll out economic transparency, eventually branded with committed engaged owners, try several pilot initiatives, test the new concept, continue to refine the process from what they learned, and move ahead. High performers embed innovation into every aspect of their organization, establish innovation hubs, welcome feedback, inspire and stimulate new thinking and shape an innovative culture to appreciate ideas and rapidly integrate them into innovation.

Take advantage of changes in the external environment, continually revamp their business models to achieve competitive advantage: The digital business world nowadays is so information-oriented and change-intensive, to rejuvenate innovation, practice intrapreneurship and reinvent business models by foreseeing and applying emerging trends - that’s where you win the competitive advantage. The heart of intrapreneurship is about changes, creating a new venture from within established organizations to leverage the startup culture for catalyzing innovation, improving the organizational growth and profitability. It presents a possibly even greater challenge and reward by pioneering the development of new products, processes, and services through enriching its competitiveness and developing business competency and strength.

It’s about discovering the new path for business growth and balancing innovation with other organizational priorities. Emerging digital technologies are creative disruptors and abundance of information provides the very clue for the business growth opportunity. It’s critical to drive new business revenue growth, and shape the digital landscape to make sure there’s a steady flow of ideas flowing in the pipeline, improve risk intelligence, and manage innovation in a structural way. It’s a healthy management discipline to gain a comprehensive value stream view, leverage value models to make wise investments and manage multidimensional business value effectively.

Find the right balance, “run, grow and transform” accordingly: Opportunities and risks coexist at today’s “VUCA” new normal. It is the “hybrid truth” companies across the vertical sectors need to handle wisely - smell and grasp growth opportunities, but also identify critical business issues and predict and prevent potential risks timely. You have to strike the right balance between chaos and order; creating the right mix of automation and creativity, “keeping the lights on" and enforcing agility, stability and change. More organizations will make a bold step, reengineer or redesign the old fashioned management control, and focus on “nurturing innovation” in a structural way. The best-performing companies understand what drives cost but more importantly, eliminate waste, and understand how that spending creates value.

The emergence of potential opportunities for exploiting digitization is likely to follow a nonlinear pattern or exponential speed. It brings both opportunities for business growth and risks as pitfalls. High performance companies pursue the “hybrid truth”- stability and dynamism by managing two separate but coherent delivery modes: One focuses on supporting; and the other drives transformative changes boldly. The value of digital management could be in better decision-making, reputation-building, resilience enforcement, and risk intelligence for achieving higher than expected business results.

Digital businesses are hyper-connected and over-complex, and continually evolve an ever-expanded ecosystem. Thus, it’s important to understand that dynamic business development is multifaceted and gain an impartial perspective by exploring the multitude of management disciplines, willing to listen to diverse viewpoints, zooming out for capturing the bigger picture and seeking new knowledge in order to achieve high performance business results.


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