Although managers might know that innovation is the only way to attain competitive advantage, they seldom know where to begin. Innovation is still a black box. Leaders don’t know where to start, how to build the necessary capabilities or even what they want to reach. The common definition of innovation being implemented ideas customers are willing to pay for doesn’t help much either. So how do start building innovation capabilities in your company?
I believe the first step to becoming more innovative is to have a common language and definition of what innovation is.
In order to develop such a common language and definition, I propose the following 3 dimensions:
- the content, i.e. different types of innovations, e.g. management innovation, strategic innovation, product and service innovation, process innovation.
- the process, i.e. specific steps on how to be innovative, develop, test and implement novel ideas
- the context, i.e. organizational characteristics and tools for enabling and fostering innovation (read more about the context here)
The company’s purpose and strategic goals should act as input which helps to focus innovation efforts.
Aligning the discussion and efforts around these dimensions will make it easier to focus on specific challenges and sharpen your thinking.
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This strikes me as more of a traditional framework for strategy formulation, not really breakthrough innovation. True innovation doesn't generally follow from vision or purpose, unless the vision is to create something disruptive and the purpose is to achieve the vision – kind of a circular path.
Virtually all breakthrough innovation occurs outside of standard business processes – that's why so few organizations ever achieve it, and even less do so on a continuous basis.
Dear Peter,
thanks a lot for your comments. You're right, the framework was inspired by strategy frameworks. The original focused on strategic innovation as an outcome but people working with the framework found it could easily be extended.
We currently use it for working with a client for example who's goal is to invent 4 new business units, i.e. our input. So we set up a process which targets at developing and realising business model innovations as an output. And you're right, this is meant to be outside of standard business processes.
Research (e.g. Birkinshaw) on management innovation has also proven that innovation starts with a problem that needs to be solved, which can also be an input.
All the best,
Marc
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