Saturday, September 10, 2022

Innovation

Innovation can be large and breakthrough, or small and incremental as long as it creates tangible value that didn't exist before. Innovation is both art and science.

Innovation is a managed process to transform novel ideas for achieving their value, and can be evaluated to drive certain business outcomes. The customer is the center of outcome-driven innovation management and they are the major focus for innovation process and accomplishment. Innovation is not serendipity, there is a strong logic underneath; an innovation ecosystem is a systematic environment with a set of "professional philosophy" in which organizations develop fresh ideas, build innovation hubs, and achieve innovation excellence.



Clarify innovation objectives/outcomes/goals: Innovation can be defined as either a breakthrough that makes a significant impact on an entire industry or the society; or an improvement in products or processes, which should be "better in terms of quality, faster in terms of its delivery capacity and cheaper in terms of cost." To increase people-centricity or keep the end in mind, it’s always important to clarify goals & objectives of innovation: What are you trying to achieve, the projective outcome? Who and what is required to make it happen. Encourage new ideas, there are no constraints. Work out estimated cost, clarify innovation objectives.

Outcome-driven innovation enables customers to participate in developing innovative solutions. For every need-driven and customer-centric innovation initiative, work closely with customers to articulate their important needs; define the most novel approach to addressing their needs, convert the ideas into the desired output or process improvement etc, make rough estimates of outcomes and overall innovation performance.

Leverage business architecture as process conductor
: Innovation is a sort of idea flow and iterative idea generation-implementation continuum. Rather than worrying about whether something is a flow or a process or a function, be focused on the capabilities needed to support business processes for producing innovation outcomes. Innovation management can use business architecture as a knowledge platform to orchestrate innovation by considering things like: Do I have to support both synchronous and asynchronous processing? Do I need a rules engine for what I do? How do I integrate innovation systems across ecosystem boundaries? Etc.

From an architecture perspective, a business innovation process is a set of activities that takes inputs and transforms them into outputs, adding value to an organization and its stakeholders. With architectural perspective and process understanding, innovation is not serendipitous, but a structural collaboration. It’s always important to strike the right balance of process and customization; more focus on outside-in: customer perception and experience or bottom-up: people knowledge and creativity. .

Innovation outcome is produced by integral processes of strategy, information technology, change, people, performance management:
As information is the most intensive puzzle piece of innovation, technology is often the disruptive force behind innovation; people are always the most critical success factor of innovation, and you can only measure what you manage. Thus, innovation processes become more dynamic, intelligent, people-centric in face of “VUCA” reality. Innovation outcome is the result of organization's innovation strategy implementation; while process output is the result of business process management.

The retrospective logic underneath innovation can be uncovered by clarifying process output and innovation outcome. The outcome is the need, the process outputs are quantifiable elements that together made the innovation outcome possible. First, you can do research on what the customers’ needs & wants of innovative products/services are even before they know themselves, then trace back to what you have in hand, leverage process management to manage known flow; process output needs to be measured for continuous improvement. The process output is more quantitative in nature while the innovation outcome can be qualitative or quantitative, providing an indication of success with tangible results.

Innovation can be large and breakthrough, or small and incremental as long as it creates tangible value that didn't exist before. Innovation is both art and science. There should be encouragement and involvement by innovation management to spread the creative spirit. And there should be a logical scenario to craft a good innovation strategy as well as the stepwise steps in implementing innovation to achieve measurable results.

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