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 many myths that exist related to the origination, feasibility, and scope of innovation efforts. Why are there numerous misconceptions surrounding innovation?
Innovative projects are difficult undertakings that require all employees to be on the same page. Bâton Global has extensive experience in guiding organizations through transformation projects and other innovation objectives. What are myths surrounding innovation that are slowing down progress at your organization and how can you overcome these misconceptions?
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 skill sets and titles can provide deep insight into the 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 incorporate 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 the development of new, revolutionary ideas. Although new ideas may lead to disruptive innovation, this is not the only way change is generated within organizations.
Organizations can find innovation by looking outside of their industry. It is likely that organizations within their respective industries are struggling with similar challenges, and companies 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 conversations 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.