Innovate or stagnate. This is an option all businesses have, it’s all about choice. Choose to remain the same and not change, then risk a greater chance of failure, or being acquired by others. The debatable factor, is timing.
The choice dilemma for many businesses is based on a level of lowest possible risk, to remain the same and not rock the boat is often a preferred choice. Such decisions eventually lead to downfall at the hand of competition, where poor market and financial performance delivers ever diminishing returns to shareholders. On the other hand, it does not mean that if your business is innovative you will be any more successful, unless you start the process from a customer centric position.
A business commitment to innovation generally starts with an inspirational statement usually as a component of the company vision, or direction statement.
For an example of inspiration supporting innovation, look no further than NASA and the following comment.
“Today we are launching a bold and ambitious new space initiative to enable us to explore new worlds, develop more innovative technologies, foster new industries, increase our understanding of the earth, expand our presence in the solar system, and inspire the next-generation of explorers…”
NASA Administrator Charles Bolden February 1, 2010 (from NASA Fiscal year 2011 budget estimates submission document )
Can you imagine NASA not having an innovative culture? Can you imagine the progression of science and technology without the efforts and investment made by NASA?
Does innovation happen by default, or because there is a deep rooted culture that propels the mindset of all in the organisation?
Does your organisation struggle with the concept of innovation?
In my career I have spent many hours at creative sessions and conferences, where the strategic intent has been to kick start a focus on becoming an industry leading innovator. They initially commence attempting to stimulate the “creative juices” of their respective employees. Then when returning back into the day-to-day activity, the process is forgotten and it is back to business as usual. I am sure you can identify with theses situations.
On reflection, I cannot recall any of these sessions having any significant impact on the way the organisation performs, or responds to market activity, or improves its market perception as an innovative company. The investment in these processes has been considerable and the R.O.I. very questionable.
This then raises the questions: Why? Why conduct these sessions? Why do they rarely work? Why is it important to stimulate the potential creative mind? Is there a relationship between creativity and innovation? Should innovation be integral to organisation culture?
In the mind of many skeptics innovation can be a very dirty word because less than 10% of commercial innovations actually drive returns to shareholders.
For this reason many organisations struggle, and continue to produce mediocre performances as differentiation between them and the competition is minimised. Their lack of confidence in innovation is based on past experiences and learning. Often the learning experience is a result of previous program failures.
Can an innovation culture and supporting process possibly work for your business?
Where do we look to regain confidence in commercially successful innovation based strategy? Perhaps the following organisations who are rated amongst the top 50 innovators:
- Apple
- Netflix
- Amazon
- LG Electronics
(For the official Bloomberg Businessweek list created in collaboration with the Boston Consulting Group 50 most innovative companies 2010 click here )
How many of the above organisations existed 15 years ago? Why are they winners? How did they break through in crowded and competitive markets? All have innovation as a core business process.
Smart organisations view innovation as an essential element of business culture. “Its the way we operate here, and its the way we think”. Innovation is an intrinsic part of their day-to-day operations.
It is not an easy road, requiring an organisation to potentially rethink the way it operates and then make a top down leadership decision to commit, from this point the work can commence.
Market leading innovation, creates superior value propositions, increasing brand equity, improved financial performance and leadership.
Below, is an outline of the key areas of the innovation process.
At Mind Fusion we are passionate about assisting organisations deliver innovation as a core element of their business culture, and as such we have devised processes to support your business move forward. Don’t give your competitors the lead opportunity. Contact us now to explore in greater detail.