Elements of Enterneering®/Organisation/Innovation
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Innovation is the reformation or renewal of products, processes or business models. The degree of innovation can range from incremental to disruptive. The ability of a company to innovate determines its market positioning and competitiveness. Innovation is not achieved through a concrete method or a defined process. A high level of innovation requires certain conditions.
WHY?
Permanent change and innovation are elementary components of the digital age. Product and market transparency have increased enormously, and customers can decide more easily and quickly among various options. Companies that want to survive in the long term under these conditions must be able to keep pace with the required innovation rates and development cycles while continuously optimising their processes and reducing costs. Companies that concentrate on established products and are hesitant in their further development, or do not do it enough, face a high competitive risk.
HOW?
PLANNING AND DEVELOPMENT HORIZON
Companies with a high level of innovation look farther into the future and have development goals and plans for the coming years. Their corporate philosophy is based on a firmly anchored foresight. The strategy embodies a healthy approach to dealing with imponderables. These companies thus create an important prerequisite for striking an appropriate balance between preservation and innovation. Other companies tend to follow the motto 'never change a running system' or often venture only into the realm of incremental improvement.
SELF-ORGANISATION AND FREEDOM
Innovation does not require a special form of creativity. However, it has been shown that in areas with a particularly high proportion of agility or self-organisation, the capacity for innovation also increases.
TRANSPARENT DECISIONS
Innovation is supported when proposals or concepts for innovations are decided within a reasonable time and with sufficient feedback on content. Honesty is just as important as reliability and appreciation. There should be a consistent evaluation standard.
PROMOTE LEARNING AND KNOWLEDGE
Innovation arises from curiosity and knowledge, and these can be promoted within the company. Knowledge management is just as important as continuing education and training.
EXPAND DIVERSITY
It has been shown that the ability to innovate develops within teams made up of diverse talents and individuals from different cultural backgrounds. This necessarily goes hand in hand with an established culture of tolerance in the company.
REWARD INNOVATION IDEAS
This is one of the more conventional approaches, but rewarding ideas and suggestions continues to have positive effects. It does not always have to be about monetary incentives. Often, even authentic personal recognition leads to a positive outcome.
ENSURE CUSTOMER PROXIMITY
Especially in B2B business, it is essential for successful innovations to be close to the customer. In many innovative companies, workshops and projects take place with customers to develop and test innovations.
DEFINE MINIMUM REQUIREMENTS
Clear requirements should be described in the company as to how proposals for innovations must at least be prepared. This promotes concentration and seriousness while reducing the number of immature ideas.
MARKET MONITORING
Companies that strive for a high level of innovation should have an appropriate form of market research and analysis in place. Many innovations arise in connection with external influences or developments. The results and information gathered through this radar must be made available to the entire organisation so that innovations can emerge within the organisation, regardless of wherefrom.
DEFINE RISK APPROACH
Innovations cost money, and the process of collecting and weighing decisions also requires effort. Many ideas must be discontinued during the preparation phase. There should be an appropriate budget and risk awareness for this effort and cost.
INSTITUTIONALISE INNOVATION MANAGEMENT
Above a certain level of complexity, creating a separate function for innovation management makes sense. Among other things, the process for transforming an innovation idea into an implementation measure should be defined here. This function is responsible for improved internal coordination and communication. It ensures the availability of supporting tools and the application of innovation methods such as design thinking and business model canvas.
CREATE INCUBATION OPPORTUNITIES
For certain ideas or topics, it has proven very useful to isolate the individuals concerned in a place that is as undisturbed and conducive to creativity as possible. This method is also called incubation. Such innovation spaces can significantly increase the performance and motivation of the participants. Meaningful incubation usually requires a certain level of maturity in the topic.
Innovation can be organised. Experience has shown that the key to fostering innovation lies not so much in the organisational structure or a specific methodology but rather, in the conscious integration of the topic in an innovation-friendly corporate culture. The creation of such a corporate culture is one of the main characteristics of the successful work of entrepreneurs on their company.