No matter the industry, innovation is a hot topic that is on the minds of many business leaders. Even though innovation is a focus of conversation in many strategy meetings, there are still innovation myths that exist regarding the articulation, feasibility, participants and size. Why are there numerous misconceptions surrounding innovation?
Bâton Global has extensive experience in guiding organizations through transformation projects and other innovation objectives. Innovation motivated projects are difficult undertakings that require all employees to be on the same page in implementing change innovation. Why then are there so many misconceptions about innovation that can cause miscommunication and a lack of understanding of key initiatives?
A misconception exists among many that innovative ideas only come from those who are higher up within a company or have a background in entrepreneurship and/or research. This is far from the truth, as employees of all skillsets and titles can provide insight in organization based on their knowledge of processes and the business model.
Organizations can encourage innovative thinking and collaboration by creating a culture that fosters engagement and commitment. Implementing strategic management systems that incorporates employee insight leads to the fostering of engagement and commitment.
Although innovation can come from transformation in products and processes, most organization wide innovation occurs through business model transformation. Organizations that focus on new strategies in creating and delivering value coupled with process or product innovation see greater rates of return than those focused on developing state of the art technology.
For example, insurtech startups are currently disrupting incumbents in an industry that traditionally only has a few major players. For the most part these organizations have created innovation through changes in elements of the business model and not just newly developed technology.
It is common to believe that innovation only occurs when organizations have access to major resources, whether that be capital or human resources. This is untrue, as organizations of all sizes have displayed industry-changing innovations.
Research-based internal analysis provides data and insight in determining where organizations are creating values for customers, and where improvements can be made. As competition in the marketplace continues to intensify, organizations must keep the customer in mind throughout strategic decision-making.
When most people think about innovation, they hold the concept that innovation is only created through new ideas that no one has developed. Although this may evoke innovation, this is not the only way change is generated within organizations.
As mentioned in Challenges in Innovating the Business Model, organization can find innovation in looking outside of their industry. It is likely that organizations within their respective industries are struggling with similar challenges, and industries in other industries may provide a solution. External analysis is needed in order to gain insight into industry and competitor analysis, along with awareness of other industries.
There is a
belief that innovation is random, and can’t be structured or scheduled. It is
true that some organizations benefit from revolutionary technology without much
planning, but most innovation occurs through business model innovation.
Business model innovation takes discipline and a strong desire to create
change. A system needs to be developed to create innovation, one where all
employees are engaged and provide insight.
Bâton Global has found that implementing enterprise-wide management systems evokes change across the whole organization. By developing a system that encourages insight and collaboration, more ideas are shared and there can be healthier conversation surrounding innovation. Management systems also provide a structure to implement and schedule steps toward innovation.
Innovation is a subject matter with numerous misconceptions. Bâton Global has guided clients through transformation projects where innovation changed fundamental ways of thinking within organizations.