Building Innovation Capability | Navigating the Next Evolution of Ecosystems

Tuning out, a need for simplification and better value

April 27, 2022March 11, 2015 by @paul4innovating

I have been totally struck by the overwhelming number of webinars being offered to me on a daily basis, all related to innovation and all free.

Am I the only one getting overwhelmed in choice, underwhelmed in content value?

This is a bit of a long rant, so turn away now those who love all the free choices you currently have, don’t waste your time reading on.

Those a little more curious, as my friend Michael Fruhling always says in his useful blog “then read on, dear friends….”

What do you get of real value when it is offered free?

Our longer term winner is clearly open digital innovation

April 27, 2022March 5, 2015 by @paul4innovating

In my last post I was discussing the effect digital would be having on our innovation activities, be these presently opened or closed.

The impact of digital innovation changes the innovation paradigm significantly.

Organizations can stay digitally closed in their innovation activities, moving beyond simply developing innovation solutions themselves into a connected (closed) network, where the platform becomes the enabling force and those that join share common ground or purpose but are pursuing separate value propositions that required this ‘extended’ collaboration to achieve this position.

These ‘closed systems’ can give a level of competitive advantage but these are increasingly transitory depending on the complexity and uniqueness of the eventual value proposition. Collaborative platforms are clearly the way to go to open-up innovation that allows more radical and complex solutions to be provided.

We will see a new wave of open digital innovation

What makes up your innovation capital?

April 27, 2022February 25, 2015 by @paul4innovating

If someone came to you and asked the question: “tell me what makes up your financial capital?”

I expect you could answer this fairly comfortably.

It might need a little added help from your finance department but you could produce and show significant details that we are all ‘schooled’ to understand and generally have accepted, under common definitions and standard practice.

Our businesses are measured constantly on their financials, we produce a constant flow of reporting documents that provide useful insight and allow for a more informed judgement by present and future investors on the health of the company. We are ‘wedded’ to our financials and ignore the real value within our organizations of all the other critical capitals that generate and strengthen the business.

What if that same person came to you and asked instead: “what makes up the innovation capital of the company?’” could you answer this as clearly as the financial one – I would suggest most probably not. (By the way, if you feel you can then please let me know I would be more than interested).

We are focusing more on past performance and not future generating potential by staying fixated on just the financials within all that makes up our organizational capital

So what makes up our innovation capital and why is it important to know?
Should we care, does it matter? I would argue it does, increasingly so. Within the innovation capital lies the future of the organization and holds one of the real golden keys to the sustaining performance of the company, or not.

Building Innovation Capability Through Three Interlocking Platforms

April 27, 2022February 20, 2015 by @paul4innovating

A little while back I was reading somewhere an academic paper and it triggered a thought on interlocking platforms for innovation, so I set about capturing it for this post, and then it somehow got filed away.

So this is the reworked opening thought to record the idea to ‘capture’ it, so I can reflect later on, on how I should build on this further. I show a number of hyperlinks to help in pulling this together…..well for me anyway!

So this is a work-in-progress and should be taken as a thinking out loud at this stage.

Linking capability through interlocking platforms
We are in need of a different “sustaining” capacity build around innovation as its continuous core, constantly evolving, adapting, learning and adjusting, in perpetual motion.

How? Innovation has many ‘touch points, a myriad of dimensions that need to be aligned and integrated. How can we achieve this more holistic view, so innovation management can make a significant advancement on where we are today?

Making the business case for innovation to change is not easy but essential

The Four Lenses of Innovation by Rowan Gibson

April 27, 2022February 17, 2015 by @paul4innovating

Every now and then, a book comes along that completely surprises me in terms of my own reactions to it.

They always force me to unglue some of my preconceived ideas thankfully, and then I can stick them back together again into a whole new pattern.

To be honest, I still have not fully figured out why I keep pondering over Rowan Gibson’s “The Four Lenses of Innovation: a power tool for creative thinking”, which will be published in early March, and why it is forcing me to reconcile different thoughts in my mind.

Rowan Gibson’s previous book was “Innovation to the Core- a blueprint for transforming the way your company innovates”, which he co-authored with Peter Skarzynski. It has been one of my favourites since it came out in 2008.

I often dip into this book and refer to some of its thinking and frames that have emerged following its publication. One of those frames was the “The Four Lenses of Innovation”, outlined in Chapter Three, which became the basis for Rowan’s new book.

One really big issue is aligning strategy and innovation, right?

December 4, 2021February 8, 2015 by @paul4innovating

Achieving innovation alignment always needs clear framing.

I would argue most problems or disappointment with our innovation efforts can be attributed to a lack of alignment to the organizations strategy and/or its poor governance with our end results.

Here I am suggesting a way to overcome this constant frustration.
Poor strategic alignment can be overcome by working through a comprehensive approach to addressing all areas that impact innovation. One such framework I believe can help, as explained here, through the work mat approach.

I believe this work mat approach does moderate and organize innovation for greater alignment. It allows for the senior management to become engaged and shape the direction as it takes a more holistic approach. The work mat contains governance as a specific part of its framing as this can do far more in driving the conditions to innovate.

The intent with developing this work mat approach has been to clearly set out that much-needed ‘greater’ strategic connection through engagement at a senior level, they drive the outcomes, they provide understanding beyond the vision to make the necessary connections, they fuel the engine and ignite the energy that innovation needs.

The last five yards – the really hard part

April 27, 2022February 1, 2015 by @paul4innovating

It seems so simple doesn’t it – “bringing final ideas to market”. So easy to say, yet it does seem so very hard to achieve.

Everything we should be aiming towards boils down to the judgement of a ‘successful execution’ or not.

It is this last, hard five yards of all the work that went into something, which can make or break so much of the efforts that have gone into this emerging ‘commercial life’ of our new innovation activities.

We should regard the back-end of innovation as the rugged part

Is all investment about the future?

April 27, 2022January 13, 2015 by @paul4innovating

I was reading an article by Doug Collins on the “three wishes for the innovation practitioner for 2015” where he points out “2014 was the year for share buybacks and dividends“.

An article from Bloomberg reports that companies in the Standard & Poor’s 500 Index are “poised to spend $914 billion on share buybacks and dividends this year, or about 95 percent of earnings.”
95% of earnings – Doug rightly says “wow” and offers a thoughtful set of observations

“Every organization that enjoys free cash flow makes a decision on where to allocate that resource. If the opportunity available to the organization meets or exceeds the hurdle rate—the desired, expected rate of return—then, in theory, they invest in that opportunity. If not, then no: the organization returns the cash to the investors. Of course, earnings come after investments the organization makes in innovation—research & development expenses, for example. Many do invest a lot in R&D”

He then remarks “And yet…..and yet” ….

Where are the new feeding grounds of innovation?

April 27, 2022January 4, 2015 by @paul4innovating

Credit Wildebeest migration, Kenya, by Bonnie Cheung — Wildebeest migration, Kenya by Bonnie Cheung

I am presently reading an early release draft of a book written by Mike Docherty of Venture2, on innovation, and I would certainly recommend the read when it comes out.

The book Collective Disruption will be available as of February 2015.

The book as Mike wrote to me, is aimed at corporate leaders, both in large and small companies, charged with new sources of transformative growth and makes the case for co-creating new businesses with entrepreneurial partners.

It builds on a foundation of open innovation, but is focused specifically on new business creation (vs core business support).

I know that Mike is passionate about the intersection of corporate innovation and entrepreneurship for co-creating new businesses and business models. As CEO of Venture2, a consulting and new ventures firm, he works with leading brand companies and start-ups to commercialize breakthrough new products and businesses.

Mike has experienced disruption many times.

My innovation wish for 2015

April 27, 2022December 26, 2014 by @paul4innovating

I would like to see emerge a different ‘sustaining’ capacity built around innovation as the continuous core, constantly evolving, adapting, learning and adjusting, in perpetual innovation motion.

A truly integrated innovation solution that sits in our organization to allow innovation to be fully leveraged and exploited.

We need to recognize innovation has many touchpoints and a myriad of dimensions that need to be aligned and integrated. I genuinely believe we need a solution provider, who takes a more holistic view of innovation management that can make a significant advancement on where we are today, in our processes and systems.

These need a total integrated solution as the approach. this has its complexities in the challenges but we do have the potential through technology deliveries, platform constructs, and using the flexibility and adaptability found in the cloud.

If we combine these technology enablers with our innovation management understanding, then we can begin to construct this systematically and thoughtfully. It is very achievable and necessary for our organization’s abilities to absorb and translate knowledge into innovative growth, something missing for many.