Updated: Jun 28, 2019
Originally published in LinkedIn by Krishnan Naganathan in June 2018
Innovation is essential today for organisations to stay relevant. While organisations are busy working on exploiting and optimising existing business with mostly incremental improvements/innovation, they are failing to prepare staying relevant in the medium to long term.
To stay relevant in the medium and long term, organisations need to focus on
a) Growth business - Expand existing and building new business. This is predominantly adjacent innovation that leverages existing capabilities or markets
b) Future business - Explore options, place small bets on emerging opportunities. This is predominantly through radical innovation.
It is observed that good organisations focus on existing business, growth business and future business simultaneously. Best innovators seem to spend effort and money in the ratio of 80:15:5 across the 3 areas.
The key question for every organisation: What is the destination and ambition with your innovation efforts?
More specifically, organisations need to look at
How do we stay Relevant?
What is the organisation’s strategy to remain relevant? Are you innovating for profit or growth? Are you dependant on incremental or radical innovation? How good is your understanding of end users How good are you at capitalising on leveraging market trends and understanding future needs of customers? How good are you at break through innovation using Technology?
What are we innovating?
Innovation can be of many types and organisations need to carefully select the type of innovation. How can you innovate the way you make money (business model, networks)? How can you innovate your core and enabling processes? How can you innovate the offerings (product performance, product systems and services)? How can you innovate your delivery ?
How are we innovating?
Finally, it is people who are the key to innovating. What style of leadership suits your innovation strategy? What innovation capabilities and tools does your organisation need and have? How is the innovation process managed?
Over the last decade, Innovation360 Group’s founders have studied what innovative capabilities must be in place to explore and commercialise modern opportunities. The Innovation360 framework is based on the research of Magnus Penker and is one of the comprehensive models of innovation. An assessment using the InnoSurvey® provides a systematic assessment of the organisations capabilities and provides a roadmap for developing sustainable capabilities
The InnoSurvey® uses the world’s largest database on innovation; 1000 companies in 62 countries, and provides insights into how the best companies in the world approach the challenge of staying relevant in 3 horizons; short term of 1 to 2 years, medium term of 3 to 5 years and long term of greater than 5 years.
The assessment is based on a research based 92 question survey, that takes feedback from management, employees and external stakeholders (board, suppliers & customers) regarding the organisations ability to innovate new solutions, products, process, business model etc. Alignments between strategy, leadership, culture, capabilities and competencies are explored and highlighted
The assessment also provides an innovation footprint and InnovationIQ based on 66 capabilities giving a clear view of your strengths and weaknesses as well as providing global benchmarks.
The analytics capabilities of the platform help answer important questions; Does the organisation have innovation strategy aligned with strategic focus in different horizons? Does the leadership style aligned to enable the strategy? How are capabilities aligned with focus areas in different horizons?
We are happy to help you explore how your organisation can understand it’s innovation capability.
Please reach out to Krishnan Naganathan, an experienced management consultant and Innovation Management practitioner.
Reach Out: firstname.lastname@example.org (+919791033967)
Further reading: https://innovation360.com/