Identifying possible innovations and then developing them to the point of commercialization is a challenge for any size business, particularly so in larger companies.
The cause of this size related difficulty involves both the complexity of the larger organization and where the company resides on the continuum of internal innovation cooperation versus competition.
Recently our company was working with an international wood and paper products company and we observed there were ongoing conflicts regarding who owned and controlled the various innovation initiatives.
Tensions were present involving who set the priorities that determined which projects were pursued. This led to disagreements as to whether the product’s development should be done internally or outsourced.
As a consequence of these conflicts this company’s innovation results were quite lacking.
However, establishing a responsive, flexible, and agile innovation management system can have enormous paybacks.
Successful Innovation Can Pay Off Enormously
For instance, earlier this month General Motors Corporation announced it is forming a new business unit named BrightDrop, that will focus on the battery-powered delivery vehicles and equipment market.
Its first product will be an electric-powered, wheeled pallet that shuttles goods from warehouses to trucks, and from trucks to their destinations. Next, GM will introduce an electrically powered delivery van.
Pamela Fletcher, GM’s vice president of Global Innovation, stated they do not plan to get into the delivery and logistics business, but they want to work with companies in that industry, like its first customer, FedEx.
Starting in late 2018, Fletcher has been in charge of monetizing GM’s innovation technologies by using them to develop entirely new markets. She said, “We really need to leverage our electrification expertise to other industries”.
General Motors focus on innovation is paying off financially – its stock price has now risen to the highest point since the company left bankruptcy protection in 2010.
The key to residing in the land of innovation successes it that just like a person’s central nervous system enables communication and cooperation of all aspects of their body, so all of the elements of a company’s innovation effort must be connected and communicating.
This requires determining which departments need to be involved in an innovation project, coordinating their efforts, and putting in place an Innovation Management System.
Fostering Internal and External Interconnectedness
D. R. Walker’s research established the fact that to be successful with innovation, an organization needs to achieve a level of interconnectedness between itself, internal departments or functions, and its external environment.
To effectively accomplish this, the use of a comprehensive innovation management software is a must. Proper innovation management software can assist with breaking through the boundaries that divide the various departments that need to fully cooperate in the pursuit of innovation.
Innovation communication in a smaller company may just involve the Leadership, Marketing & Sales, and Production areas. However, in larger companies it may encompass 10 to 20 departments.
The goal is to achieve full integration between various internal and external ideation sources and innovation players. This includes connecting business development functions, internal R&D areas, merger and acquisition activities, internal innovation labs, external innovation development centers, innovation “foundries”, and outside innovation research resources.
Innovation Reporting
The system used to manage the stream of innovations must not only facilitate the flow of ideas through the organization but also track and report on the status of all ideas. This communication is imperative because the originator of the idea needs to know in real time what is being done with his or her submission. Tracking ideas by the submitter is crucial for rewarding the submitter, and the company can use this communication channel to provide guidance and direction to the submitter regarding future ideas.
Where to Start
An idea collection system should be put in place to collect ideas from both inside and outside the company. Ideally, a 360° approach should be used to solicit ideas from customers, employees, suppliers, sales channel, and the public. A key component of the system needs to be its ability to keep the idea submitter up to date regarding the status of his or her submission.
Thereafter, the system needs to guide the innovation project through the development process and provide communication of status information to all the parties involved in its realization.
If you could use assistance with developing innovations within your company by creating an effective innovation management system, or enhancing your current one, please contact us using the information below so we can be a resource to you in this critical area.
Fountainhead Consulting Group, Inc. is an Innovation and Business Planning firm. During the past 17, years we have shown over 1,200 companies how to achieve their goals by using our unique, comprehensive, and systematic FastTrak Innovation Program™, Innovation Academy™, and Structure of Success™ methodologies. Using the components in these methodologies, each month we examine an aspect of how to transform your business or organization into a true 21st Century enterprise.
Office: (770) 642-4220
www.FountainheadConsultingGroup.com
George.Horrigan@FountainheadConsultingGroup.com
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