I’ve
been thinking about innovation today. It’s a hot potato for some people and a “tick-in-the-box-next!”
question for others. Most of the procurements I see still have some demand for
you to illustrate and even enumerate your approach to innovation and what they
can expect for their innovation dollars. But what do we mean when se say
innovation? How does it help us and our clients?
"An important distinction is
normally made between invention and innovation. Invention is the first
occurrence of an idea for a new product or process, while innovation is the
first attempt to carry it out into practice" Fagerberg,
Jan; (2004). "Innovation: A Guide to the Literature”
This quote
outlines the academic view that innovation happens when someone uses an idea,
an invention or a discovery to change how they view the world, how their
business and processes work and how they organise their businesses and lives.
In this view innovation occurs whether or not the act of innovating succeeds in
generating value for its enthusiasts and can be summarised as the act of moving
an idea from the theoretical to the practical. I don’t like this view, whilst I
recognise the abstract worth of pure innovation and the sheer fun/excitement of
innovation for innovations sake (all change is good said Marshall McLuhan) , I
consider innovation to be about value
and as such I’d try to focus effort and planning onto the leveraging of
invention to generate value for our clients (or ourselves, or even me) in new
ways.
"Innovation is distinct from improvement
in that it permeates society and can cause reorganization. It is distinct from
problem solving and may cause problems. Thus, in this view, innovation occurs
whether it has positive or negative results” Fagerberg,
Jan; (2004). "Innovation: A Guide to the Literature”
Also I do not
take the view that improvement, problem solving and innovation are distinct
efforts. In the context of delivering benefit, I’d aim to leverage innovation
to drive improvement and solve problems (simples no?).
So if it's this easy, why does
innovation fail and why do potentially valuable new ideas fizzle out?
The answer isn’t as complex as many people
would make out, basically there is a potentially disruptive impact of
innovation driven change which you must deal with. Somehow you must develop
plans strategies to mitigate the impact of the change and to make sure you get
at the value, all of it.
In his latest
book, Running the Gauntlet (2011), Jeffrey Hayzlett states that “You think you
will have a tough time changing? You’re right… you will fail and things won’t
work. It will be messy. Change is easy to say but hard to do”
I think it helps if you
stay focused on what it is you are doing.
What is
innovation?
Innovation is the
translation of ideas and discovery into value.
But from that, why do we
innovate and why do we innovate hardest in IT? We seem to
innovate as direct function of our nature, beyond the cellular level change we
share with all life, from the moment we
started to use tools we could innovate. When we learned how to communicate we
started to innovate faster. To balance this, potentially damaging innovation is
held in check by small-c conservative forces which appear to be a function of
the amount of spare capacity in a society, i.e. innovation is risky and
dangerous in simple agrarian societies as they have so little spare capacity to
absorb failure, it's an investment function. Simply put unless it’s patently obvious to all, the innovation
will be ignored unless their is capacity and investment to support it. As we build more capacity and speed up our communications
channels we innovate more and faster.
Innovation is
investment plus communications.
Once we have the
ability to simulate the effects of innovation, i.e. “what if” then we put the
innovation cycle into overdrive. Where we are now
is driven by information technology. Information technology has been described
as the purest arena for innovation, combining huge flexibility, massive user
base, easy access to tools, knowledge and rapid means of propagation. Whilst
driving the translation of ideas into value this also creates a great deal of
“noise” as thousands of ideas clamour for attention and investment.
How do you
recognise value or an “idea whose time has come?”
Well you could
use the old hype cycle thingy from Gartner and the like if you like your
innovation second hand and second guessed by whose marketing department can
really show an analyst a good time or you could wait until things are
mainstream and just buy off the shelf, if you like your innovation cold and
like playing catch up.
I’d like to think
that we’d all be prepared to explore something more agile, something more
controlled and something more personal to our needs.
Perhaps you
already have a CTO team who are looking at this, perhaps they already have
ideas portals and ideas markets and perhaps you have a few wins under your belt
and are now hungry for more. But why did the innovations you chose succeed and
why did a few fail?
In my opinion,
innovation requires ownership and accountability to succeed yet it also needs
an environment where failure isn’t terminal and where failing innovations can
be quietly put out of their misery whilst lessons are learned from them. I
think you learn more from the failures than from your innovative successes and I
think the innovations that drive the most value aren’t the ones you set out to
test. So I’ll leave you with my final thought for the day, toodle pip!
Innovation is controlled
failure in an environment of open, fearless and honest accountability
Innovations sans le ownership can be quite costly. I don't leave links on others' blogs, can show you what I mean if we speak, though.
ReplyDeleteAs for myself, its a tough call: if you want to build something, when bootstrapping, you retain all the equity; IP securing is costly, though, and so, people often are wise to take on VC or angel money based on just a mock-up. SKYPE osakasaul if you have a chance?