Innovative organizations should be capability-driven and people-centric, lighting up the surroundings.
Many organizations which get stuck at the low level of business maturity seem to live in the darkness without a clear vision, identified unique strengths and hot spots for innovation. In the digital era, companies need to create their own strategic light, design a good strategy, build differentiated competency, increase risk intelligence and improve overall business competency.
Organizational strategy provides the light in identifying both building blocks of capacity and roadblocks of changes, setting guidance for the business to move from “as-is” to “to-be” state: All industries have more or less their own distinctive business cycles. Organizations are at a different position in the business cycle, and search for the light for unlocking business performance. All businesses need to develop strategic objectives, derive and implement effective measures. It is more about looking at your strength and core and then formulating a proactive strategy. Every strategy making process will come to the point where resources need to be committed to implementation.
How effectively the strategy plans have been articulated internally and externally, depends on the management's vision as stated through the mission statement; and the communication system effectiveness of the business. Strategy which cannot be executed is just a mirage, so execution should always be part of the good strategy. It follows that strategies always have to be flexible as the business environment undergoes a major change. Strategic light is not burning hot, but warm enough to inspire passion, create new energy for people to pursue it, produce high performance results tangibly,
Innovation is the light all businesses need to pursue now, as innovation touches broader aspects of organization to accelerate business performance: The foundation for innovation has to be grounded in the “vision.” It has to be linked to “hope” and seeking justice, discovering "truth." Besides hard innovation such as products/services/business model innovation, there are soft innovations such as culture innovation, business model innovation, process innovation to directly impact business reinvention and customer satisfaction.
One of the real challenges to innovation management is how to accelerate idea validation and streamline innovation processes. Even if you have many innovative ideas, it doesn’t guarantee innovation success due to the limited resources and possible execution gap. Innovation often evolves the full development cycle which covers the whole innovation management scenario, from processes in managing ideas or idea handling systems to idea implementation and promotion.
Risk management provides the strategic light and tactical angles to improve business management effectiveness for achieving great business results: If the business cannot manage risk effectively, then all the good work done by it so far can be tarnished, and turn out to be a costly affair, the strategic light fades away, darken the business environment. It’s critical to understand the risk appetite of business management, improve the risk attitude of staff, and embed risk management mechanisms into corporate culture. So the enterprise risk management programs would be making continuous improvement based on the feedback from the risk management process and what would be left is what is unknown.
Risk management permeates across organizations and should not be a separate function at all, making transition from risk control to risk intelligence. Identify the potential business growth opportunities, understand opportunities, roadblocks, decide which one to go after and which one they will not go after and clearly articulate forward the way value will be created. Even though all the known and potential risks would have been covered and managed, still, there would be unknown risks, hidden pitfalls on the way, creating the shadow of business changes.
Traditional organizations are often process-driven or operation-oriented, but innovative organizations should be capability-driven and people-centric, lighting up the surroundings. It's a strategic imperative to create a disciplined space for inspiring creativity, develop and test new business models, products, services, and business management approaches, take multidirectional business exploration for unlocking business potential ultimately.
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