Innovation is widely regarded as the single most important ingredient in today’s economy. But innovation as a destination isn’t enough.
Sustained innovation is a high-productivity state in which an organization to innovate in all aspects of its business, including management, divisions, operations, customers and suppliers. It requires a seamless, structured management approach that begins with board- and CEO-level leadership and connects all the way through technology investment and implementation. Above all, sustained innovation is a journey, not a destination. The enterprise doesn’t stop innovating after attaining one goal; it’s engaged in a continual process of reinvention, invention and discovery.
Sustained innovation is powered by people who come together to share ideas, compare observations and brainstorm solutions to complex problems. Enterprises with a strong focus on sustained innovation share three common principles that act as the glue binding people together in productive collaboration. They are:
1. Converged disciplines: Ideas aren’t isolated; they’re celebrated in groups that enable the entire organization to act as one entity. Of particular importance is the convergence of business and technology management to ensure that no one unit or division is missing the opportunity to capitalize on new ideas and possibilities.
2. Cross-boundary collaboration: No enterprise operates in a vacuum. Every manager, employee and contractor potentially has a piece of the puzzle to create a new breakthrough business opportunity. Suppliers, partners, distributors, and customers are an equally valuable source of information and ideas.
3. Innovative business structure: Not every organization can empower an unstructured development culture like the Lunatic Fringe who led innovation at ground-breaking tech pioneer Texas Instruments; most require structure that compels convergence of disciplines, management and operational units.
To bring these principles to life, enterprises operating with sustained innovation focus on three distinct, intimately related practices that require business/technology/management convergence to perform at a high level of organizational maturity.
Sustain Innovation Playbook
Designing and operating organizations capable of sustained innovation requires a playbook that demands a systemic process constructed around the following core steps:
• Listen broadly for ideas through vision, innovation and external networks. Listen to the customer. Listen to the front lines in your organization.
• Understand who your actual and potential customers are, what they want and need, what they will need and why those needs have not yet been met.
• Organize the innovation team to include those with a stake in the innovation, organize the innovation program and organize the resources and investments needed to address the problem.
• Create an environment and capability for innovation by giving the team the ability to fail. Create many alternative solutions by leveraging the cascaded innovation lifecycle.
• Experiment and learn from failure. Conduct many experiments in parallel, using prototyping and other iterative, feedback-driven techniques.
• Listen again to the customer to help them imagine. Use prototypes to elicit feedback. Listen to customer acceptance/buying criteria. Listen to what could go wrong, but don’t let the devil’s advocate take control.
• Design the concepts to address customer-centric values, such as cost, intuitive use, ease of change and sense of enhancement.
• Implement the final go/no-go decision. Consolidate or eliminate competing alternatives to a manageable number. Send concepts back for reinvention, retesting or redesign. Implement the second stage of the innovation lifecycle: manifestation.
Get out of the Garage
Sure, some people work better alone. But most people are more prolific as part of a team or extended community of ideas and talents that fosters some of the world’s most important inventions. Garage inventors can’t possibly compete with myriad breakthroughs born from sustained, systemic innovation. The first single chip microprocessor publicly introduced by Intel in 1971, the first car safety air bags offered in the 1973 model Chevrolet and the depression game changer drug Prozac in 1988, are all considered great innovations developed and perfected by teams, not individuals. Even Oppenheimer needed the Manhattan Project team to create the atomic bomb. The true test of sustained innovation isn’t the invention itself, but the ultimate and ongoing benefit produced by the innovation for the business.
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Discipline and innovation are not opposites, but complements. Establishing an innovation culture consumes a great deal of organizational energy in overcoming the forces of inertia and entropy. But once an idea has been successfully commercialized, respected champions emerge to drive new sources of the energy, creativity, discipline and resources that sustain and grow an enduring culture of innovation. Successful organizations manage innovation from concept to commercialization so that good ideas not only get created, but also continually find their way into the products and services portfolio