Building Innovation Capability | Paul4innovating Innovation Views

Failing to explain innovation capital

Last week I made a complete ‘hash’ of explaining innovation capital. I made a set of basic mistakes in my preparation and my delivery. I allowed for little discussion and debate and I just ‘blasted’ on regardless. I’ve been standing in the innovation ‘sins’ corner most of this week.

I can honestly say I don’t feel so good about this failure at the moment and I thought a more public ‘confession’ was in order. I will also let the ones that suffered from this also know how I feel.I made such a simple set of basic mistakes. I’m still asking myself why and have been slowly working through it to get to the bottom of my ‘aberration’ moment. Let me share some of this with you as learning from failure is as important as celebrating success.

The story could easily go……”well it was simply one of those days…to much coffee beforehand, being distracted by other issues……” No, those should simply not happen. Somehow I forgot some basics and then some more but I’m certainly never too old to (re)learn and own up to this.

Let me explain, I was asked my opinion in a thirty minute exchange on innovation capital. It was not my finest thirty minutes. Continue reading “Failing to explain innovation capital”

PwC’s report on breakthrough innovation and growth

I’ve been reading through the PwC report “Breakthrough innovation and growth”, a survey of 1,757 C-suite and executive respondents, on their thoughts on innovation.

The top line news is how companies are seeing innovation transforming their businesses and their need to take a more sophisticated approach to innovation, so as to achieve the growth plans they are setting for the next five years.

PwC are suggesting there is an innovation transformation under-way: “Companies are changing the way they innovate“. They further state that “innovation is becoming a competitive necessity, if it’s not, then executives need to be asking themselves what they could do to improve their innovation process.”

All I am providing here are my initial takeaways from a report I would recommend does provide really good value in working through. It seems innovation is becoming far more the central driver of the organization’s agenda than in the past, where geographical expansion along with mergers and acquisitions were more dominating. Continue reading “PwC’s report on breakthrough innovation and growth”

Approaching innovation through fitness dynamics needs a structured approach.

This post follows on from my recent one of “the Innovation Journeyman.” We do have a real journey still to travel to understand the dynamics within innovation. Here, I want to lay out a possible path that might advance us towards achieving this. This includes a fairly ‘intensive’ nine step approach outlined below.

What we do need to do is constantly evolve our innovation capabilities to perform in more dynamic and flexible ways. We need to acquire that consistent aim of achieving a more adaptable and adjusting approach to innovation in all its parts.

We need to meet the changing circumstances and challenges we are all facing to regain the real growth needed from our economies and organizations, making what we do at the same time, more sustainable. Delivering better innovation outcomes is central to this task.

Continue reading “Approaching innovation through fitness dynamics needs a structured approach.”

The Innovation Journeyman

Continuing the innovation journey searching for the framework to deliver the dynamics of innovation by focusing upon achieving a certain innovation fitness.

My personal innovation journey started way back in 2001 when I got ‘hooked’ on innovation and what it could deliver in its impact on a business.

I believe it is for greater engagement within the organization and increased identification through their people, with the potential for learning and improving their capabilities.

Progressively I learnt about innovation, studied it as part of my Master’s degree and began to practice the parts others were prepared to pay me for, either to listen to, or offer advice.

This innovation journey took on a shape that eventually became 100% of my focus within my advisory practice at Agility Innovation Specialists by systematically building my understanding of innovation and providing this knowledge to others through advisory, coaching, writing and mentoring services.

It still is a long continuous journey twelve plus years later.

I’m constantly learning, reading, absorbing and interpreting what I understand and then attempting to provide my thoughts to others, those willing to listen!

I’m comfortable in much, totally restless in so much more out there to explore and work through, so as to achieve potential solutions, through experimentation and prototyping until they become recognized as relevant and applicable.

Investigating, researching and reading all required a significant amount of time, all alongside needing to practice innovation, working to clients’ needs or pushing for their attention to changes taking place within the field of innovation management and what they needed to do about it.

Dynamic capability applied to innovation gained my increased attention Continue reading “The Innovation Journeyman”

Seeking the middle management’s innovation perspective

It is often claimed that the middle manager seems to the ones holding back innovation. I tend to subscribe to this as well although I feel the circumstances and ‘blame’ might lie elsewhere, more than likely further up the organization. Irrespective of where the culpability lies we do need to change this perception through altering the current dynamics.

The general argument goes that the middle manager is so pressured to focus on the delivery of short-term results that all their efforts are centred far more on delivering ‘just’ an effective organization, that drives out any excess or leeway, reduces variation, constantly dampening down potential risk and uncertainty that is in direct conflict with what innovation required.

By the middle managers obsession with constantly chasing efficiencies alone, there is little ‘slack’ for innovation and new learning. Their measurement is often based on this efficiency and effectiveness emphasis and not on generating innovation. Continue reading “Seeking the middle management’s innovation perspective”

Are we getting real value out of innovation consultants?

When you stop and think about how innovation has been managed and understood over the years you soon realize how much has changed in this time. It is very significant, yet there is still much to do. Innovation understanding is changing, certainly for the better and as it shifts our perspectives on where knowledge resides as this is altering.

Today I think we are yet again at yet another crossroads in this innovation understanding and perspective. That is to extract the leading edges required from their innovation activities within organizations. This will require fresh innovation consulting business models to exploit the growing complexity of managing emerging innovation practice to support and extend their understanding.

I’m attempting to get my head around it, let me share some of my thinking here.

There has been a continual shift of where innovation knowledge resides. The external provider, who was the main source of latest insight, hands on practice and leading ideas in the past, I think have been significantly falling behind in recent years, on their contribution and value to organizations. Continue reading “Are we getting real value out of innovation consultants?”

Are you a business model innovator?

I think nearly every significant business consulting firm has written about their thoughts on business model innovation. I was reviewing the number of articles I have collected about this and it is becoming mind-boggling how so much advice can be offered and can still make sure it leaves you in deeper conflict and confusion than before.

I’m talking here more about the larger, more established organizations confusions on approaching business model innovation, not the start-ups or the younger businesses. We struggle to get an established well defined approach to approaching business models in these more established organizations. I think there are multiple reasons and I’ve touched on some in past posts.

Is help on the way or are we about to layer on more confusion?

I know there are plans on there way where the combined minds and efforts of Henry Chesbrough, Steve Blank and Alexander Osterwalder are entering the fray even more, in a new educational offering at UC Berkley in late October. I think there is ‘stand-alone’ modules as well in their respective works, especially over at Strategyzer, Alex’s mix of tools, software, academy and on- line resource around the BMI.

Their focus at this Berkley short course will be on developing new sources of growth, by helping companies figure out ways to drive the development of new business models within their company. Continue reading “Are you a business model innovator?”

A Cascade of Better Choices for Greater Innovation Outcomes

It is not an easy job to achieve the level of consistent innovation expected within any organization. Often those breakthroughs never seem to be repeated, we struggle to understand the reasons why we can’t achieve that regular rhythm or dependable outcomes from the innovation portfolio, that we would have expected or the board demands.

If you ever look at high performance in sport it is in the consistent, hour-upon-hour, day-upon-day of dedicated practice, hard work and consistent honing that gets you to that performance point. You seek to reduce deviance; you look to achieve a certain consistency.

Business Organizations will like that approach, it ‘plays’ to the efficiency and effectiveness message, it offers up predictability and reliability that allows for dedicated planning and ‘predicting’ solid performance and certainly. This is ideal for those investors looking for consistency in results and dividends and the Executive Board yearns for.

Today uncertainly asks for a different performance

Continue reading “A Cascade of Better Choices for Greater Innovation Outcomes”

The Age of Large Business Model Reinvention

Most of our existing organizations are searching for the mechanisms to reinvent their business models, through identifying, designing and executing differently from the existing ones, where they tend to simply be ‘locking themselves into’ repeating patterns, possibly opening themselves up to new forces of disruption.

There is a sense of urgency that is growing at the corporate level, to master this ability to design different business models and then set about executing them, to combat the multiple ‘disruptive forces’ swirling around in the present and near-term business environment.

Reinventing the Business model is such a big ask in the complexities to overcome, the legacies, the vested interests, the distribution of created wealth (dividends, bonuses, performance) are all ‘locked into’ the existing business. Many of those necessary bolder decisions get caught up in horrible compromise. Parallel managing is both an art and a science but it always needs clarity.

Addressing the current dilemma within business models

So we have a classic dilemma, we need to manage and extract as much as we can from the existing business but simultaneously begin to reinvent, to design something different. Continue reading “The Age of Large Business Model Reinvention”

The Understated Back-End of the Business Model Canvas.

So we all know a standard company balance sheet has three parts: assets, liabilities and ownership equity. The accounting equation states assets and liabilities are known as equity or net worth and this net worth must equal assets minus liabilities. The balance sheet summarises the present position or last audited position.

Well in the Business model canvas we have the cost side, the back-end, made up of the activities, resources and partnership aspects and a revenue side, the front end, made up of customer segments, channels and customer relationships. It is the ‘net worth’ of all these blocks that makes up their contribution to the Value Proposition.

It is the nine building blocks when we put them together, tells the complete story, a little like a business model balance sheet. Balancing this out thoughtfully does need that bringing it all together, so as to give others the compelling story and begin to mobilise around and attract the necessary resources.

My question though is this: “is the BMC understated at the back-end today and should we strike a different balance for more established organizations?”

Balancing the BMC BMC model is by Osterwalder & Pigneur. Visual source: Steve Blank — Balancing the BMC
BMC model is by Osterwalder & Pigneur. Visual source: Steve Blank

What happens when one side perhaps gets over emphasised?

Very much the orientation of the business model canvas is presently skewed towards the front end – the market facing part and rightly so. You are in search of a new business model, you will never find it in the building. As Steve Blank rightly stated “you have to get out of the building” to validate your assumptions or hypothesis, to search for the value in the real marketplace.

Continue reading “The Understated Back-End of the Business Model Canvas.”