It takes a holistic approach to connect all important dots with multifaceted perspectives; continuously try to improve, innovate for unlocking the full organizational potential.
There is no standing still. Innovation is one of the most differentiated business capabilities to create unique value by producing great products/services to solve problems alternatively. Innovation management overall has a very low success rate. Innovation success depends on many factors such as talent, process, resource, etc. Strong governance encourages creativity and enhances innovation disciplines.
An innovation strategy would encompass a repetitive or iterative process to create: Innovation becomes a persistent, shared reality even across silos and geographies. The creative workplace is based on a triangle with vertices: people, process, methodology and technology. Nowadays, innovation is very complex but critical for firms’ survival and thriving. Innovation must be a fluid process inside any organization; therefore, it will be addressed as part of the main overall strategic plan. A good innovation strategy will include where the company plans to focus its innovation efforts, innovation not only has a broad scope but also has deep context.
Different innovation strategies can exist, being top-down, bottom-up, user-oriented, internal, outsource, etc. By building an effective innovation framework, and initiating structural innovation practices. organizations can be more effective in executing innovative ideas by relying less on silo functions, more on cross-functional collaboration and continuous improvement.
Innovation governance as a continuum is an important perspective to improve the innovation management success rate: Now the business environment becomes more dynamic, if innovation management is like the pedal to accelerate speed, innovation governance is the steering wheel to keep a straight line or take a turn at that velocity of innovation management. Sometimes governance standards can be taken too far and become their own bureaucracy. In that case, innovation would be stifled.
Governance is about enabling. The right level of guidance and process is important, but overly rigid processes or too “pushy” goals will stifle innovation. The leverage point is to frame innovation and keep focused, without adding too much complexity.
Innovation risk management would need to be flexible and applicable to a dynamic situation: Business environments are changing frequently and innovation in its basic nature is a high risk area. There are both opportunities and risks for every investment. The more disruptive or radical the innovation is, the greater the risk would be. It’s important to continue to make an objective assessment of the innovation investment portfolio. There are many out there that simply don't understand, or appreciate the benefits of risk and opportunity management to an organization, which always makes it difficult to introduce strategic risk management.
Risk management is an integral part of governance discipline. The insightful innovation management needs to check up: Are innovation portfolios diversified? What is the relative health (risk, value, strategic importance) of each of the portfolios? Usually return and risks are proportional. When people speak about an initiative generating new revenue, visibility into each investment is established to provide ongoing investment health information as well as enable understanding overall portfolio health.
We are at the intersection point of knowledge economy and creative economy; we are on the journey to build a highly-innovative society. It requires much more time, energy, passion, courage, experimentation, retreat, and reflection to get people inspired to think creatively and solve problems alternatively. The right level of governance guidance and processes is important; over governance stifles innovation, under governance decreases the success rate of innovation. It takes a holistic approach to connect all important dots with multifaceted perspectives; continuously try to improve, innovate for unlocking the full organizational potential.
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