With the emergence of technology, innovation is getting into the layers of businesses. But is the same happening the other way round? It is surprising to observe that companies these days are relying on innovation but fail in the successful development and implementation of it. Companies all across the globe are investing approximately $1 trillion on innovation per annum, but sadly at least 10 percent of it ($100 billion) is wasted.
Most of the companies are trying to follow the path of big companies like Google, SpaceX and imitating their innovation trajectory. It has been observed over the years that imitation method hardly works in terms of innovation. It would beneficial for such enterprises to discover tools and structures which suits their agenda the best and satisfies their requirements, strategies, and approach. These companies can encompass some steps to get their innovation entity to act.
The identification of the right kind of innovation is required to achieve a variety of goals. The range of goals can be from reducing undesirable costs and adding value to the product preventing it from possible disruption via competitors and developing futuristic models. The umbrella of innovation covers a large area including – fresh products, better backend processes, employing new-age technology to build efficient platforms and enhance customer experience.
In this race, one needs to keep market status in mind too. The innovation should be market facing which involves new products, their reach to customers and potential disruption they could cause.
Another aspect to bring into consideration is the convention. To cope with the disruptive market, it is not necessary to ignore conventional approach completely, sometimes traditional compliance-centric culture can also be beneficial. In order to prevent that, some companies tend to separately start their innovative unit to make it work simultaneously.
Discovering the best source of innovation in quintessential. Considering the fact that the world is too small and you are no unique, you have to make an extra effort to produce unique. It is absolutely possible that the ideas on which you are working are already produced or in the process by some other organization around the world. Here you need to bring machination of developing sources into the picture. The company needs to understand where is that happening and how to generate a productive approach to have access to what is required by you. In such a situation, there can be two forms of sources – internal and external.
• Internal Sources: A lot of companies discover internal competitions which help they cultivate new ideas and concepts to drive innovation. The existing staff sometimes prove to be the needful resource for the company. Even in some cases, some employees can fetch funding for new companies in the market.
• External Sources: External sources can be created through various styles of partnerships such as the partnership with academia, acquiring new businesses or start-ups or collaborating with sponsors or innovators based on demographic approach.
Companies should be clear about owning an innovation or get it done by others. At times it becomes very important to own an innovation while holding a patent on an upcoming product which can also give a new stance in the market. But in some situations, this can be disadvantageous. For example, if ownership of innovation is increasing cost and comparatively adding less value to the product then it should be taken into reconsideration.
Companies can encourage other innovators and helping hands to work on the innovation while behaving as a backend support themselves. Additionally, they can also indulge in multi-company or industry-wide collaborations.
Innovation is no magic that it will happen overnight, it also requires a process to produce outcomes like other business ideas. One needs to understand that big innovative ideas don’t get implemented themselves, they need to go through a process to general potential results. It is not necessary that the process of innovation operate as per the company’s conventional workflow, it might involve certain other procedures and tools to perform effectively.
Additionally, wider business strategies are required for encompassing new ideas and their progress needs to be tracked with time. An effective business model needs to be built, incentives and compensations need to be managed properly both for innovators and users. Hence, to explore the broader capabilities of innovation, the companies are compelled to build an innovative unit beyond prevailing challenges.