Thursday, September 2, 2021


Innovation capability modeling may consider the process dimension itself, but also technology, information, people, strategy and others.

Innovation is a differentiated business capability, a managed process, or more precisely, a dynamic system of transforming novel ideas to achieve its business value. It is the firm’s ability to integrate, build, and reconfigure internal and external competencies to commercialize business ideas for achieving high value.

Innovation capability modeling is described as a part of the overall design phase which aids in innovation capability analysis and development scientifically.

Innovation capability modeling can be a driver for designing and developing innovation related capabilities, especially when done in collaboration: Due to the fact that innovating in today’s world has become increasingly complex in nature, often, organizations can no longer rely on a single individual or team to drive innovation. It is a strategic imperative to develop the organizational level innovation competency. You have to systematically develop the innovation competency for improving the organizational abilities to manage ideas and implement business value, and that is something you do not accomplish overnight. Modeling is an integral part of design for testing the practicality, effectiveness, and efficiency of innovation capability design and fine tuning innovation competency of the company.

Usually organizations have a set of incremental innovation and breakthrough innovation. Incremental design requirements most often produce incremental innovation results, and perhaps relatively limited financial returns, for that matter. Breakthrough innovation is better with greater ROI but with much greater risk. Innovation capability modeling is a means to capture and communicate design. Modeling can also be seen as an evaluation activity - simulation or analytics review, prior, during or after the design phase.

Innovation capability modeling and design are not one-shot activities, but a logical and continuous improvement cycle: You have to balance the art and science that goes back and forth between innovation capability design and modeling in order to manage the capability development cycle successfully. For incremental innovation, the common management practice tends to automatically limit each design cycle to small evolutionary/incremental design improvements. Radical innovation requires design teams to attend to the total system of all valued product interactions and related opportunities to systematically create new design features that efficiently enable new value across wide ranges of current and new product interactions. Radical/breakthrough innovations are not something everyone can accomplish. Capability design is figuring out what to do and how, being understood by peers and stakeholders. Modeling is to evaluate the practicality for getting the process in a production environment.

You design the innovation capability, then model, execute, monitor, optimize then again back to design, with the goal to enhance and accelerate an innovation management cycle. Innovation capabilities have outcomes; they collaborate with each other and are enabled by processes. Innovation capability modeling is a means to capture and communicate design, and can also be a driver for a thinking/design process. Process models allow analysts to manage large volumes of activities and run simulation events to identify areas in a process that can be changed and optimized to improve innovation success rate. After you have modeled the process, evaluated and selected a design you are going with, your intent with the design is to go forward with the implementation.

Innovation capability modeling is multidimensional, and could serve many purposes beyond forecasting: Innovation Capability Modeling means representing decision gateways, linking the sequence of relevant activities, events from end to end, and taking the theoretical design to implementation. You have to balance the art and science that goes back and forth between design and modeling in order to manage the Innovation life cycle successfully. Methodologically, innovation modeling is to help communicate about the design of a process with the variety of stakeholders by graphically articulating how a process flows, could be 'as is' or 'to be' and there are different types of models and notations you can use to increase visibility.

Compared to the other types of business initiatives, innovation has a much higher rate of failures. You simply can’t model reality properly, too many permutations, unknowns, interactions, uncertainties, non-linearity, with "singularities" etc. Innovation capability modeling may consider the process dimension itself, but also technology, information, people, strategy and others, depending on the complexity level of innovation capability. If soft factors are important to a problem, then a model should incorporate them. The results will not be very precise and you will not get a point prediction, but you are likely to have fewer errors than if you completely ignored those factors.

Using models without understanding their limitations exposes you to big surprises. A model will never be perfect, but a model can still be useful if one knows what to use it for. As the organization matures in the process area, you can start to look at more sophisticated models. Using one good methodology for process modeling is an indicator for innovation process maturity. Highly innovative organizations involve tapping the organization's ecosystem for collective perspectives and knitting all critical business elements into differentiated innovation competency


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