Innovation is defined as the process of turning ideas into solutions through certain methods referred to as the innovation process. Innovation is important in any organization. Organizations that get comfortable with the norm or their usual ways of doing things and avoid changes get left behind and eventually fail. This is how powerful innovation is. It is a deciding factor for an organization’s success or failure.
The business side of innovation is important as well. From a business perspective, innovation is what fuels the organization. No organization is safe from failure that is why organizations need to be able to adapt to changes. Organizations need to constantly innovate and think long-term. To understand how the innovation process works in the business perspective, there are five concepts to remember:
Challenge: This phase is where you plan the innovation project, involve stakeholders, and frame and communicate the innovation challenge.
Ideate: This simply means generating ideas.
Converge: This is where you take a wide range of ideas and eliminate or combine them into a compelling design.
Prototype: This is where an early sample or model of a product or services is created to be replicated or learned from.
Test: This is the phase where you try out the workability and efficacy of your prototype.
Business Innovation Objectives
The objectives of business innovation are simple yet powerful. These are to create, deliver, and capture a product or a service’s value.
Create Value. Feasibility is one objective of business innovation. The important questions to ask are what the product or service does, how is it made, and how do you build it.
Deliver Value. Interest should also be considered. Who is the intended market of the product or service? How do you get them and catch their attention? How is the sale completed?
Capture Value. Profitability, repeatability, and scalability of a product or service should not be ignored.
The people are an organization’s most valuable asset. Organizations that truly value people create settings for these people and the organization to succeed more often than fail. Here are some of the benefits of engaging people in every step of the process:
- People become more confident about what they are doing and act in the best interests of the organization
- There’s a higher level of productivity
- Doubles the success rate of an organization
- People see the connection between their tasks and the larger goals of the organization
- People lookout for the needs of others, the whole organization. They are generally more engaged
- Improves the quality of work and health of people
There are two types of creativity namely artistic and conceptual creativity. One thinks differently while the other deliberately. Ideas are valued relevant to the human condition in artistic creativity, while the other relies on the ideas’ relevance to the situation. Artistic creativity aims to inspire, while conceptual creativity aims to affect people. In an organization, there are a lot of ways to encourage creativity. Using the two types as your guides will help you understand what to do and how to encourage your people with successful responses. Being open to your people, giving positive feedbacks and reinforcements, encouraging diversity, providing the tools your people need, and avoiding punishing your people when they make a mistake are just some of the ways to foster creativity in your organization.
For the organization to succeed, they need to have a structured and business-centered prioritization process. What happens after generating tons of ideas? The answer is you screen those ideas and choose what to prioritize based on what your organization’s needs and objectives. You have to have criteria that would measure the level of an idea’s importance. You have to be able to answer the following questions to determine what ideas to prioritize:
- What is the value of the idea? How valuable is it? What is the return of investment figure? Are there any tangible benefits from the idea?
- Is the idea suitable with the organization’s strategy and current situation?
- Will stakeholders support and accept the idea?
- Is the idea feasible? Are there enough resources and time for it?
- Will the idea benefit the organization and work plausible both in short and long term?
Creating Value through Innovation
Increasing business value through innovation is important for the organization’s success. These frameworks address the challenges faced by organizations and examine the complexity of such challenges which consequently result to created ideation values. Innovation performance frameworks such as the following help organizations create values through innovation:
- Product innovation strategy
- Portfolio management
- Idea-to-launch process
- Climate and culture