Why innovation is critical to success

Seizing the Initiative Through Creative Thinking Versus Reacting to the Enemy local copyby Grothe, SAMS paper, Leadership must be committed to learning, underwrite experimentation, and create an environment that generates creative thought and innovation.

Why innovation is critical to success

Innovation defined: New, useful, real and critical to long-term success | ZDNet

Enterprise Innovation The innovation process requires considerable amounts of trust. The innovation process involves risk both for the firm running the process and employees participating in the process. Jeffrey Baumgartner outlines some practical ways to increase the level of trust, and therefore the level of innovation, in your firm.

Why innovation is critical to success

The innovation process requires considerable amounts of trust. Without it, the process is unlikely to produce much more than incremental innovation. Worse, great ideas devised by employees are likely to be taken elsewhere for implementation.

Indeed, in an innovation survey published by PriceWaterhouseCoopers in the early s, trust was identified as a key characteristic of innovative companies. It is not hard to see why.

The firm must invest resources in the process and it must be willing to implement creative ideas which have the potential to become innovations remember, an idea is not innovative until it has been successfully implemented. Creative ideas are inherently more risky than incremental improvement ideas.

Unless the firm is willing to take on this risk, its innovation investment will bring only incremental results.

Personal risks Employees also take risks by participating in the innovation process. Depending on the company, they might face ridicule, reprimand, lost promotional opportunities and dismissal. Or, they might look forward to recognition, responsibility and improved promotion prospects.

Why Innovation Matters

It goes without saying that if employees can look forward to the latter set of actions, they are more likely to participate. For this to happen, they need to trust their colleagues, management and company. The company needs to ensure that risk is minimized through trust.

Risk rears its ugly head during several parts of the innovation process. Identifying problems Although many people believe organizational innovation starts with ideas, it actually starts with identifying problems and goals.

Finding fault in well established processes is easy. Communicating it to superiors who may have a stake in that process is challenging. People who criticize corporate processes may well be branded trouble- makers, rebels or worse. Unless a firm openly invites people to question assumptions and established processes, most employees will keep criticism to themselves or, at best, share it at the coffee machine with colleagues of equal standing.

While many firms may claim that they are open to the questioning of assumptions and criticism of processes, the employee must trust the firm that it is being open and honest.

Without that trust, criticism will not be shared.

Why innovation is critical to success

Idea generation Albert Einstein is credited with saying:Everyone wants to know: What does it take to reach success in business—the kind of success that lasts? It all comes down to a solid grasp of the fundamentals of business—the same kind that are taught to MBA students in many of the world's most prestigious business schools.

Innovation is the key idea that is shaping corporate life, helping leaders conceive previously unimagined strategic options.

Take acquisitions, as an example. Communities of Practice: 3 Critical Success Factors. José Loeffen, Consultant on Innovation Knowledge management, Competence management and Communities of Practice (CoP), identifies 3 essential attention clusters to make this type of knowledge management a success.

Innovation is a journey into the unknown and there are many paths open to the innovator. Before starting it is essential to know things like: 1) What business are we in now and want to be in going.

Innovation is a journey into the unknown and there are many paths open to the innovator. Before starting it is essential to know things like: 1) What business are we in now and want to be in going.

First and foremost, each has recognised and worked hard at making innovation a critical capability within their organisations. It is understood that the ability to increase business value through innovation is a critical success driver.

Why Innovation Matters