gaining innovation momentum | Paul4innovating Innovation Views

Innovation Software, is it facing the Innovators Dilemma?

*The Winds of Change- Innovation Software facing the Innovators’ Dilemma*

In my research, I am getting a real sense that the current Innovation Management Software model is about to be upended and disrupted as per Clayton Christensens’ “Innovators Dilemma.”

The book the “Innovation Dilemma” published in 2016 was written by innovation expert Clayton Christensen suggesting even though even the most outstanding companies can do everything right–yet still lose market leadership.

Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices.

Today if the technology software solutions are not advancing and adapting to new ways of building open, collaborative exchanges across not just a single organization but multiple ones. This need of all coming together to co-create, often solving more complex problems, ideas are lost or not being spotted by the incumbents and over time, others recognize these “blind spots” will present opportunities to offer new approaches to solve problems.

In this book it expands on the concept of disruptive technologies, a term Christensen coined in a 1995 in an article “Disruptive Technologies: Catching the Wave”. It describes how large incumbent companies lose market share by listening to their customers and providing what appear to be the highest-value products, but new companies that serve low-value customers with poorly developed technology can improve that technology incrementally until it is good enough to quickly take market share from the established business. (source Wikipeda)

Today the reversal is happening.

Fears of those unknowns

*The fear of the unknowns explodes upon those not ready*

When the established order begins to creak and dismantle, seemingly in front of our eyes, those fears of the unknown can kick in, especially if you have been used to managing in an established (slowly) evolving way for most, if not all, of your business life.

We seem confronted with rapid change, and it is primarily within the business world related to technology and market uncertainty that is driving this. We need to counter “fear” with a different approach, recognizing most of what we feel might be the ‘unknown’ is actually ‘known.’

We need to recognize our unknowns, search out others who might be experts in that point of not knowing and gain their help in piecing the parts that might be fragmented together to bring that need for recognition and clarity in our mind.

Fear can immobilize us.

In a recent exchange I had within one innovation community discussion, it was suggested that Innovation Business Ecosystems did not have the expected uptake because of this “fear of the unknowns”.

What initially prompted this was my post on making the business case for “Thinking about Innovation Ecosystems” Well, we need to address fear to get past this mental blockage of the “fear of those unknowns”.

So this short post is on tackling fear and dealing with the unknowns.

Helping discover your innovation pathway

*You need to discover your innovation pathway*.

I started posting my thoughts on innovation in August 2010. I have written on this site alone, www.paul4innovating.com, by just coming up to a milestone of 700 posts focusing on innovation thoughts and opinions, so I just wanted to pause and think about all the different places I have tried to get the innovation message(s) out.

I always find the post-New Year to be a reflective part of the year of reviewing, deciding, and then setting new goals. This is a post about the sources of my knowledge that feeds my innovation passion.

Let me start. I often wonder whether the posts and articles I’ve written have been hitting the right buttons, helping solve the needs of those involved in innovation; I hope so. I have pushed out and explored various aspects, learning myself as I go. I have followed a number of great innovation thinkers and read different books on the areas of innovation.

It amazes me. How much is talked about, advice offered and sometimes that deep down nagging feeling, innovation understanding does not really change; it is the people managing it as they often seem to be simply passing through this innovation period onto other things or vanishing in pursuit of different career interests.

The needs of Innovation Coherence

Innovation often fails to align with strategic needs. It is a known, well-discussed fact. This is often not the fault of the innovator but the very people designing but not sharing the strategy or failing to recognize all the implications this might mean in shifting resources, investing money or simply under-appreciating the complexities that often lie with innovation to conceive, validate, contribute and deliver the contributions into that strategy.

Sadly many innovators are simply happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, and this lack of coherence merging from the boardroom, failing to cascade down the organisation leaves this strategic part that innovation should plan as far to vague. They are not drawn into the need for change and its implications from an innovative perspective. Alignment should be a rigorous evaluation.

Building our capacity to innovate needs understanding and reflects the organization’s business activities. Innovators need to grasp the value creation aspects that will deliver the necessary capital-efficient and profitable growth and then ‘go in pursuit’ to achieve their contribution to these goals.

Even the basic questions often remain unclear: “How are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital?” What is specifically being deployed or recognized needs to change and to get into the necessary detail becomes essential.

Innovation comes in different forms and problems, all requiring financial support.

*Innovation & Finance needed for the Energy Transition in developing countries*

Innovation has a very tough job of attracting the necessary money to take a concept or idea all the way through to commercialization. There is always that constant asking about the economic return and the associated risks.

Financing game-changing investments, replacing something existing or simply providing something new have tough financial questions always to be answered.

Here I am taking an innovation need in a different way than most are used to reading about. So what are right conditions to invest and realize innovation?

The Energy Transition is one of the toughest innovation challenges ever. We must remove fossil fuel as a source of energy, decarbonize our planet and replace it with clean energy alternatives of solar, wind, hydropower, nuclear and green hydrogen solutions. To make the transformation in just under 30 years is a massive task. So far, we are doing a poor job of this as markets, solutions, opinions, and financial support are all highly fragmented.

Tacking emerging and developing markets is even harder to achieve an energy transition.

Can you imagine what it is like in a developing country that lacks sufficient energy and infrastructure yet is faced with the sizable task of expanding its economy to meet growing population expectancies and the need for rising incomes to give that essential potential for growth that having energy available can provide?

Were we all upside down in 2022?

*Image adapted from Imaginary Forces for this post*

What an utterly strange year, 2022 has been. We have been confronted, reflective and seemingly having to “kick start” our lives again after the challenges of living through the impacts of a global pandemic.

We go into 2023 far more in personal and business conflict. We do need to find a new way of working. It is not throwing away the technology, tools or established processes, it is transforming these in new and different ways. We have not found the “real-time” to stop, explore and approach concepts and innovative ideas in different ways. Our mindset or conditioning was fairly hard-wired from our past ways of working, we felt unable to justify “permission” to change how we undertook work and have found it challenging with the impact of being remote. Many have simply walked away from their past established ways of working. We are confronting unsettling times for many reasons.

In many ways, it felt all we knew or needed was suddenly not good enough. We have lost our understanding of many things we became used to, and suddenly it all seemed challenged in far bigger ways. War, flooding, famine, shortages, and illness challenges began impacting our lives. We were indeed been confronted with a series of crises and the need for a fast, thoughtful set of responses which we were unprepared or incapable to give as each challenge has been highly complex.

We were beginning to be more open to being more reflective but we have been constantly pushed to take us back to “business as usual”. In many ways, we are struggling with a need for a “reset” but it is far more complex than that as we are in the middle of multiple crises.

This return to the old normal is a non-starter for me, we are in a rapidly changing world

We are in need of recognizing and discerning how much our world is upside down, so we can begin to understand how we need to re-equip ourselves to a new way of working, thinking and responding. We need to “righten” what is wrong with this feeling of much of what we are doing being out of balance.

We are all struggling to transform ourselves. Our businesses are grappling with the current economic difficulties we all presently facing including shortages, disruptions, and dealing with inflation and economic downturns and massive climate change challenges. We are not only confronted with the potential of the toughest downturn in modern times but with all the pressures with the speed of decision-making, and technological advances that seem to ‘suck up’ more of our daily lives instead of helping to resolve it. 2022 was unsettling for me.

What makes the Innovation Ecosystem different?

In the past few months, I have been writing consistently on the need to change our innovating process, thinking and designs into Innovation Ecosystem ones.

In October, for example, I wrote, “Why do we need to change our thinking about innovation“. I continue here with some more arguments of “why” we need to move towards an innovation ecosystem in design and thinking.

I continue to gather, reflect and construct the “how and what” structure of this redesigned innovation (ecosystem) process/system. This will be my initial view of how this needs to be shaped as the overriding architecture of an Innovation Ecosystem. I’m coming closer to the point of sharing this in the coming weeks.

I am focusing here on arguing for changing our innovation process on the Business-to-Business or Industry-to-industry, not the retail or consumer ecosystems and their designs.

Let us first provide the top view of the difference in need and the offer of new values.

Building out our innovation ecosystem in design and thinking

*Finding the new building blocks of innovation ecosystem design and thinking.*

Why change our thinking and designing around innovation ecosystems?“

For me, ecosystem thinking and design offer fresh ways for accelerating mutual learning, and through this innovation, outcome potential for sharing and knowledge building.

As we build an understanding of the power of digital platforms and ecosystem thinking, we can see gains and new values and realize different opportunities denied to us in the past by a lack of clarity, depth of understanding of what was in front of us but not appreciated, as we were looking at it differently and not seeing its potential in a combined value or bundling.

Today we live in a more connected world; technology has enabled this.

We are becoming far more networked and have a growing awareness of hyper challenges that we are in part resolving. Still, we face many blurring boundaries across market positions, competitors and global trade that need combining our talent and expertise to provide a new set of solutions, delivering on promise and impact. We are in a more complex world, needing different approaches within business organizations.

We hold the promise of liberating potential in resolving wicked problems and opportunities, providing we embrace the potential to combine and share outside our organization and tap into the rich diversity of knowledge, equally keen to collaborate and cooperate to achieve a more cross-cutting innovation that provides solutions to these more complex problems.

Innovation requires a more dynamic systematic approach

All companies talk about innovation and its growing importance, but why is it that still so few succeed in actually doing it on a repeatable scale?

What inhibits innovation? What would drive innovation success? What aspects of innovation are critical to achieving such innovative growth? Where should a company place its emphasis to gain both an improving impact on its performance and strengthen its innovation capabilities?

The difficulty for many is that innovation is a complex process that has many intangibles within the total mix to manage. Management today is far happier managing the ‘harder’ aspects of business, the current physical ones of everyday organization, not the ‘softer’ more intangible ones, where innovation often lies or emerges from. Continue reading “Innovation requires a more dynamic systematic approach”

Positioning my innovating approach

I want to find a new way of approaching innovation, a new positioning, and these are my opening statements to be questioned and built upon

Chasing dedicated focal points, looking for big transforming “impact points”
Helping to deliver them
Opening need to achieve

This needs to be complementary, synergistic, clarifying and building new intersections of opportunity

The value-adding impact and business model needs to be central

The need is the bringing together of many strands of thinking, ideally in a “living and dynamic” designed way”
Aspiring to achieve

*Innovation touch and value maps

*Evolving constantly over time in ecosystem design thinking

*Building out the dynamic environment

* Structuring the activities in a Landscape journey

*Making it a sustaining one

Until we understand the scope and impact of innovation, we can’t fully grasp the nature and the amount of change that innovation can unleash
@paul4innovating.

We need to cover the breadth,depth and scope of all innovation possibilities

It is the ability to seeing patterns, synergies and different connections that give us new avenues of convergence and value
We need a distributed, interconnected and networked environment
Agility Innovation

Recombining offers or concepts offers greater value creation in the short term but it is the ability to look out and see a different future will bring the higher value returns that innovation aspires too

We need to look to build Dynamic Innovation Ecosystems and radicially different Business Models to change the nature of innovation discovery, validation and implementation.
Paul Hobcraft