How do we innovate innovation itself?
Can we speed up the innovation process?
Can we make innovation less risky and cheaper?
Can we better predict which innovations will pay off, and which ones are duds?
Now perhaps more than ever, under constant pressure of commoditization and the volatile markets of the day, innovation is essential to sustained business success. At the same time, many organizations do not believe they are very good at innovation. We would like to innovate, but we are uncertain about what to do and hesitant to make substantial changes to bring these innovations to fruition. This innovation paradox must be overcome to innovate our way out of the crisis.

Talk about innovation always sounds good. The reality is often messy and unpredictable. Yes, you need good ideas, then pick the most valuable ones and then execute them well. But in these three straightforward steps, you capture the complexity of doing business: where do you get your ideas, how do you know which ones are good and how can you change your company in such a way that it is willing, able and ready for innovation?

Technology-Inspired Meaningful Business Innovation

Any process in business today is not only supported by, but made possible through technology: marketing (as it is for the most part internet based), self-service HR, real-time inventory, financial reporting and even more mundane tasks such as project management or the creation of content: all are done today in ways that are only possible thanks to information technology. This is why we talk about ‘business technology’, where business and technology have become one. Where your business strategy IS your IT strategy and vice versa. Where changes in technology are also changes in the business environment, and where changes in business are mapped to technology.

With business technology, innovations in technology translate into meaningful business innovation. New technology spurs new business. Innovations in the technology space create new spaces in business – expanding markets, letting new revenues flow and creating new products and services.

“Never let a good crisis go to waste”

Companies have two main behaviors: they innovate to capture a market; and they drive the cost down to maintain competitive advantage. This is true in good times, when everyone is scrambling for market leadership and it is true in bad times, when everyone is focusing on ‘core strengths’.

When sales go down, we cut cost. When we see our margins evaporate, we instinctively look for ways to keep them up by reducing our overhead, renegotiating the contracts with our suppliers or stopping some investments. How can we do ‘more with less’ seems to be the only question on our minds.But what about creating totally new value that addresses an existing need in a better way or creates new needs. Now, after many years of focus on cost cutting, the emphasis is shifting to the other way out of a crisis: do something new, innovate, find a way to make more money instead of saving money.

“If you think you are in control, you’re not driving fast enough”

A common theme in large organizations is ‘If only we could innovate as fast and easy as a startup’. There is a hidden assumption built into this wish: that all startups succeed. This may not be true. For every successful startup, perhaps three or five or ten others have tried and failed. Regardless, there is no way around it: innovation does take time. There is probably a strong correlation between how profound an innovation is and how long it takes to be fully implemented. Some change can be implemented incrementally, with success along the way while others are the risky big leaps that only show results after a bigger investment and longer period of time.

“People love innovation, but they hate change”

It will always take time to overcome inherent barriers and get people on board: your clients, your employees, your management. All people involved will take their time to digest a change, experience the benefits and then start using it in earnest. The best you can hope for is that a shared sense of urgency may accelerate adoption and quiet opponents. Because only with changed behavior will the invention become true innovation, as only the actual application of an idea brings true value.

A crisis can be liberating: it aligns people in the company, it gives urgency and helps force decisions. There is no ‘wait and see’ when the survival of the company is at stake. So, never let a good crisis go to waste; use it to build the momentum for change!