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10th February, 2012
Some Thoughts On Sustainable Innovation And Corporate Growth
The Corporate world today is characterized by uncertainty, intense competition and above all instability. It suffers failures, bankruptcy, greed and fraud.
Due to these challenges, every now and then new thinking emerges as a way of protecting entities from collapse. Accordingly, in the early 1980s and 1990s sustainable innovation became a topical issue in the management literature as a way of ensuring long term survival and growth of ill-performing companies.
To some writers and scholars in this area of management, sustainable innovation is considered as part of the strategy for corporate renewal and survival in the face of numerous challenges.
It is worthy to note that most of the world’s leading companies have reached where they are now because of sustainable innovation which they introduced and managed over a period of time. To them sustainable innovation is part of the overall corporate strategy for the success and growth of their organisations.
It is now common knowledge that it is sustainable innovation that drives business success and progress. Some companies that were previously doing better are now struggling on a daily basis to find their feet while others are using innovation and creativity to create wealth and progress.
What is Innovation?
It is about discovering new and different ways of creating or adding value. It is about departing from the old ways and adopting new and modern methods that would lead to the production of superior products or services at competitive cost.
Innovation is part of change management. According to the Business Week (March 3, 2010), “Everyone knows that innovation is what drives business success in the 21st Century”. Michael E. Porter says that innovation is the central issue in economic prosperity and Eric Schmidt says that “innovation is the technological precondition for growth”.
Some people also see innovation as the generation of ideas across the full value chain and translating them into actual consumer and customer satisfaction, benefits and competitive advantage. Others see innovation as the successful implementation of creative ideas within an organisation. To this group of people innovation is a means to an end.
Innovation versus Invention
Invention is discovering things that have never been known before. Innovation, however, is the discovering of new ways of creating value. Everyone cannot be an inventor, but everybody can be an innovator. At the same time all innovations cannot be inventions but all inventions are seen as innovations.
Innovation Presently
At the moment, due to competition and other factors, innovation is occurring fast and rapidly. This results from the fact that the world has turned into one global village. The nature of innovation taking place in forward looking companies is that it is no more a one-man show. It needs the support and collaboration of all and sundry - all sections, units and departments are necessary and very relevant.
The combination of expertise, technologies and different strategies and methods will definitely drive innovation.
Again, currently the nature of innovation is towards maximization of returns in the short time; because new products or services, depending on how they were introduced into the market, and the purpose for the introduction, normally attract good patronage. This, at the end of the day, translates into revenue for the organisation.
Difference between Innovation and Strategy
Strategy is never the same as innovation. Strategy is about delivering the company’s vision, goals and long term objectives.
It is about how to achieve the corporate objectives which are the basis for the company’s existence. Innovation on the other hand is about how to maximize new opportunities that abound in various forms and stages. It also looks at new markets, new products and services which have been put on the market. It is also about new operating models that can help improve on efficiency and productivity. All these must be defined in the company strategy.
To a very large extent, there is nothing like innovation strategy as innovation is a tool in the execution of strategy. Interestingly, strategy and innovation are inter-dependent.
Why the need for Innovation?
The issue in most cases is whether or not there is any need for innovation at all. To me the answer is simply yes, because society is very dynamic and so are products and services. The belief is that any company that cannot innovate is not likely to match the competition of today and would end up in liquidation or bankruptcy.
Any organisation that wants to progress must see innovation as being necessary. In the life of any corporate organisation, innovation should be a key factor because it will help in securing current and future growth and prosperity.
Innovation again is necessary because products or services will not remain the same forever. Through innovation, they will remain relevant at all times and not obsolete. It is to be noted that it is only through innovation that an organization can guarantee its long term survival, growth and prosperity.
Innovation will enable the organization to create a rig of fence around it. The desire to excel is another driver or mover of innovation. This is dependent on the ambition or desire of the company as well as its culture and values to outperform and beat other competitors.
There should be people with the requisite capabilities, competencies, money and resources to fund innovation. Without them it will be difficult for innovation to take place.
Ingredients for sustaining Innovation
Innovation is a process of creating value and to stimulate the survival and growth of the organization. Ideas, whatever the case may be, can come from anywhere. Ideas by themselves do not add value. It is their implementation into action that creates value. Successful companies therefore cultivate ideas that create and add value.
Innovation for a company is like oxygen for a living body. To innovate, the organisation must include everyone for the generation of ideas. In an innovative organisation, individuals are empowered to contribute their ideas and creativity. Every successful innovation process sustains itself.
Innovation will also enable the organization to take a lead by enjoying competitive advantage in all spheres of its operations and activities.
Where Should Innovation Take Place?
Organisations must know that the value delivery chain requires innovation at every link to enable it to succeed. Every aspect of the organization’s systems, structures and process needs to be innovated from time to time.
This means one will be managing the delivery of more value with decreased cost while protecting the competitive position of the company. The elements in innovation are interlinked; the people, leadership and ideas are core to either the success or failure of innovation.
Movers and Drives of Innovation
There are many factors which act as movers or drivers of innovation. Among them are the corporate strategic agenda which normally defines why it is necessary for innovations to be undertaken from time to time. A strong, dynamic and visionary leadership is one driver of innovation. The leader will by all means develop and own the strategic context for innovation.
Innovation is getting people to overcome their ego and to understand that business as usual is not the best way to correct a problem.
Helping people to broaden their horizon (think outside the box) allows one to be creative. Competition is another driver of innovation as every company wants to produce superior goods to enable them to win the competition.
Why Some Innovations Fail
In the late 1980s and 1990s, writers shifted their attention to innovations. Consequently, a lot of books were written to support that thinking. As a result, activities aimed at innovation were launched during the same period and this resulted in a situation where people were forced to think strategically.
Many companies which attempted to innovate failed simply because they did not understand what they were doing. Collection of ideas from various sectors became the order of the day. However, the innovation ideas did not have a long term focus as well as corporate direction. Accordingly, it could not succeed.
Business environments are constantly changing and the hierarchical arrangement of most traditional corporate entities cannot stand the modern day competition. Any attempt at innovation, if it is to be successful, must be a sustained one.
The organisation which is interested in innovation must provide the atmosphere for ideas to grow and be translated into products and services otherwise innovation will fail.
Any organization that wants to be successful must foster creativity by redefining the mission of the company, while communicating the mission throughout the company. Many companies fail to recognise this.
Comments about Innovation
It is said that innovation is the lifeblood of any company, simply because its growth is dependent on developing new products, technology and services for the market. Every successful organization is creative in its outlook, and creativity is the simple most important contribution employees can make towards the success of an organisation.
Any innovation that cannot add value is of no use. And for innovation to be relevant and useful, it must be sustained. In a creative organisation, what managers do is to lead and not to manage.
Any well managed and organised organisation has a degree of stability therefore it is easy to innovate. Without stability, programs aimed at innovation cannot be sustained. Organisations that are able to sustain innovations get continuous inflow of revenue and this definitely leads to progress, prosperity and growth.
Khan and Al-Asan are of the view that innovation and creativity should be the cornerstone of every modern competing organisation. In view of this, any organization that wants to survive must innovate by introducing new ideas.
In conclusion, any company that wants to be successful must be committed to having solutions instead of apportioning blame. A successful and creative organisation empowers individuals to undertake some measure of risks without punishment as we learn from our failures and mistakes.
You cannot innovate if your staffs are not well motivated to spearhead the innovation process. Again, every successful innovative program must be an integral part of the daily work as any isolation of innovation from mainstream business can produce dangerous side effects.
Organisations should not view innovation and creativity as side issues but rather as part of the companies’ core business with full support of the leaders and all those who matter. It is the only way that creativity and innovation will be relevant to organisations. Any organisation that is not innovating must understand that in no time, it is likely to fold up.
The writer is Managing Director, New Times Corporation.
Due to these challenges, every now and then new thinking emerges as a way of protecting entities from collapse. Accordingly, in the early 1980s and 1990s sustainable innovation became a topical issue in the management literature as a way of ensuring long term survival and growth of ill-performing companies.
To some writers and scholars in this area of management, sustainable innovation is considered as part of the strategy for corporate renewal and survival in the face of numerous challenges.
It is worthy to note that most of the world’s leading companies have reached where they are now because of sustainable innovation which they introduced and managed over a period of time. To them sustainable innovation is part of the overall corporate strategy for the success and growth of their organisations.
It is now common knowledge that it is sustainable innovation that drives business success and progress. Some companies that were previously doing better are now struggling on a daily basis to find their feet while others are using innovation and creativity to create wealth and progress.
What is Innovation?
It is about discovering new and different ways of creating or adding value. It is about departing from the old ways and adopting new and modern methods that would lead to the production of superior products or services at competitive cost.
Innovation is part of change management. According to the Business Week (March 3, 2010), “Everyone knows that innovation is what drives business success in the 21st Century”. Michael E. Porter says that innovation is the central issue in economic prosperity and Eric Schmidt says that “innovation is the technological precondition for growth”.
Some people also see innovation as the generation of ideas across the full value chain and translating them into actual consumer and customer satisfaction, benefits and competitive advantage. Others see innovation as the successful implementation of creative ideas within an organisation. To this group of people innovation is a means to an end.
Innovation versus Invention
Invention is discovering things that have never been known before. Innovation, however, is the discovering of new ways of creating value. Everyone cannot be an inventor, but everybody can be an innovator. At the same time all innovations cannot be inventions but all inventions are seen as innovations.
Innovation Presently
At the moment, due to competition and other factors, innovation is occurring fast and rapidly. This results from the fact that the world has turned into one global village. The nature of innovation taking place in forward looking companies is that it is no more a one-man show. It needs the support and collaboration of all and sundry - all sections, units and departments are necessary and very relevant.
The combination of expertise, technologies and different strategies and methods will definitely drive innovation.
Again, currently the nature of innovation is towards maximization of returns in the short time; because new products or services, depending on how they were introduced into the market, and the purpose for the introduction, normally attract good patronage. This, at the end of the day, translates into revenue for the organisation.
Difference between Innovation and Strategy
Strategy is never the same as innovation. Strategy is about delivering the company’s vision, goals and long term objectives.
It is about how to achieve the corporate objectives which are the basis for the company’s existence. Innovation on the other hand is about how to maximize new opportunities that abound in various forms and stages. It also looks at new markets, new products and services which have been put on the market. It is also about new operating models that can help improve on efficiency and productivity. All these must be defined in the company strategy.
To a very large extent, there is nothing like innovation strategy as innovation is a tool in the execution of strategy. Interestingly, strategy and innovation are inter-dependent.
Why the need for Innovation?
The issue in most cases is whether or not there is any need for innovation at all. To me the answer is simply yes, because society is very dynamic and so are products and services. The belief is that any company that cannot innovate is not likely to match the competition of today and would end up in liquidation or bankruptcy.
Any organisation that wants to progress must see innovation as being necessary. In the life of any corporate organisation, innovation should be a key factor because it will help in securing current and future growth and prosperity.
Innovation again is necessary because products or services will not remain the same forever. Through innovation, they will remain relevant at all times and not obsolete. It is to be noted that it is only through innovation that an organization can guarantee its long term survival, growth and prosperity.
Innovation will enable the organization to create a rig of fence around it. The desire to excel is another driver or mover of innovation. This is dependent on the ambition or desire of the company as well as its culture and values to outperform and beat other competitors.
There should be people with the requisite capabilities, competencies, money and resources to fund innovation. Without them it will be difficult for innovation to take place.
Ingredients for sustaining Innovation
Innovation is a process of creating value and to stimulate the survival and growth of the organization. Ideas, whatever the case may be, can come from anywhere. Ideas by themselves do not add value. It is their implementation into action that creates value. Successful companies therefore cultivate ideas that create and add value.
Innovation for a company is like oxygen for a living body. To innovate, the organisation must include everyone for the generation of ideas. In an innovative organisation, individuals are empowered to contribute their ideas and creativity. Every successful innovation process sustains itself.
Innovation will also enable the organization to take a lead by enjoying competitive advantage in all spheres of its operations and activities.
Where Should Innovation Take Place?
Organisations must know that the value delivery chain requires innovation at every link to enable it to succeed. Every aspect of the organization’s systems, structures and process needs to be innovated from time to time.
This means one will be managing the delivery of more value with decreased cost while protecting the competitive position of the company. The elements in innovation are interlinked; the people, leadership and ideas are core to either the success or failure of innovation.
Movers and Drives of Innovation
There are many factors which act as movers or drivers of innovation. Among them are the corporate strategic agenda which normally defines why it is necessary for innovations to be undertaken from time to time. A strong, dynamic and visionary leadership is one driver of innovation. The leader will by all means develop and own the strategic context for innovation.
Innovation is getting people to overcome their ego and to understand that business as usual is not the best way to correct a problem.
Helping people to broaden their horizon (think outside the box) allows one to be creative. Competition is another driver of innovation as every company wants to produce superior goods to enable them to win the competition.
Why Some Innovations Fail
In the late 1980s and 1990s, writers shifted their attention to innovations. Consequently, a lot of books were written to support that thinking. As a result, activities aimed at innovation were launched during the same period and this resulted in a situation where people were forced to think strategically.
Many companies which attempted to innovate failed simply because they did not understand what they were doing. Collection of ideas from various sectors became the order of the day. However, the innovation ideas did not have a long term focus as well as corporate direction. Accordingly, it could not succeed.
Business environments are constantly changing and the hierarchical arrangement of most traditional corporate entities cannot stand the modern day competition. Any attempt at innovation, if it is to be successful, must be a sustained one.
The organisation which is interested in innovation must provide the atmosphere for ideas to grow and be translated into products and services otherwise innovation will fail.
Any organization that wants to be successful must foster creativity by redefining the mission of the company, while communicating the mission throughout the company. Many companies fail to recognise this.
Comments about Innovation
It is said that innovation is the lifeblood of any company, simply because its growth is dependent on developing new products, technology and services for the market. Every successful organization is creative in its outlook, and creativity is the simple most important contribution employees can make towards the success of an organisation.
Any innovation that cannot add value is of no use. And for innovation to be relevant and useful, it must be sustained. In a creative organisation, what managers do is to lead and not to manage.
Any well managed and organised organisation has a degree of stability therefore it is easy to innovate. Without stability, programs aimed at innovation cannot be sustained. Organisations that are able to sustain innovations get continuous inflow of revenue and this definitely leads to progress, prosperity and growth.
Khan and Al-Asan are of the view that innovation and creativity should be the cornerstone of every modern competing organisation. In view of this, any organization that wants to survive must innovate by introducing new ideas.
In conclusion, any company that wants to be successful must be committed to having solutions instead of apportioning blame. A successful and creative organisation empowers individuals to undertake some measure of risks without punishment as we learn from our failures and mistakes.
You cannot innovate if your staffs are not well motivated to spearhead the innovation process. Again, every successful innovative program must be an integral part of the daily work as any isolation of innovation from mainstream business can produce dangerous side effects.
Organisations should not view innovation and creativity as side issues but rather as part of the companies’ core business with full support of the leaders and all those who matter. It is the only way that creativity and innovation will be relevant to organisations. Any organisation that is not innovating must understand that in no time, it is likely to fold up.
The writer is Managing Director, New Times Corporation.
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