The New Game Or Is It? Asset Orchestration

asset-management-for-innovationIn a recent post over on a dedicated website for discussing ecosystems and platforms, I was discussing the differences between Amazon and Alibaba. I quote “I’d say Amazon are “asset heavy” whereas Alibaba remains “asset light”.

They might be operating at the two ends of the current internet trading spectrum and are coming from different market maturity positions but it is the asset management that is becoming critical for delivering the profit or dragging performance.

Now Amazon is far from “asset heavy” when you compare them to the Industrial companies like GE but asset orchestration is seemingly getting far greater management time for all companies it seems. The lighter you are, the more likely you are to be more flexible and adaptive to respond to more disruptive challenges being faced by industries that are undergoing the shift to being more “digitally enabled”. Alibaba is very much a good asset orchestrator.

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The role Human Resources can play in Innovation and its needed Design

HR No innovation designThe management of human resource (HRM) needs to be replaced with the management of human creativity and ingenuity, as this is the triggering point to innovation success and delivering longer-term sustaining success.

The critical role of innovation is without question needed for the future growth, wealth creation and organisations potential survival.

Who is to drive the human change required here within our business organisations?

I believe within our human resource groups they must provide the people solution to building innovation capacity, they should contribute to providing lasting design impact and central engagement role in building innovation into the core fabric of the organisation. They become central to helping deliver, distinctive, radical, even game-changing innovation and that needs clear, distinct capabilities, capacities and competencies to be design into and innovation management system.

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Are we playing snakes and ladders with innovation?

Snakes and Ladders 1Have you ever played snakes and ladders? Called chutes and ladders in the US. A number of “ladders” and “snakes” are pictured on the board, each connecting two specific board squares.

The object of the game is to navigate one’s game piece, according to dice rolls, from the start (bottom square) to the finish (top square), helped or hindered by ladders and snakes respectively.

Originally from India the game is a simple race contest based on sheer luck and I am beginning to wonder if we are playing a new version of this with innovation? This is called “bust or boom” or “success or failure” or even “maybe or maybe not,” or even “will we, won’t we.” It just all depends on our luck in rolling the dice, a serendipity with a darker twist that many companies seem to be playing with their innovation capability building.

The game came to mind as I read through a recent survey on Innovation

I have just been reading an Innovation report / survey from Accenture called “Clear Vision, Cloudy Execution” and I really do think we are playing with innovation as a game, it has some really serious implications within it that need more drawing out than possibly offered in my view. We should be getting worried that many bigger companies are losing the innovation game.

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Achieving Innovations Capability Coherence

Coherence 1Innovation often fails to align to the strategic needs. This is often not the fault of the innovator, happily working away with no specific guidelines, apart from the general remit of “we need to be more innovative”, it lies in the boardroom that is not communicating the board’s needs clearly enough down the organization.

Building up our capacity to innovation does need to understand and reflect the organization’s business activities, as 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 into these goals.

Even the basic questions often remain unclear, those of how are we looking to grow revenue, save costs, reduce working capital or improve our fixed capital? Managing our innovation activities can help in all of these. Actually if you ask I expect the CFO would say “all of them” but each does have implications on understanding of the fit and eventual role of innovation’s contribution.

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Developing talent to drive innovation

Talent for innovation visual 1I recently participated in a survey for APQC that was looking to identify the hot topics within product development and innovation. One or two hot spots surprised me, others less so.

In the round-up of results almost two-thirds of survey respondents have placed refining the identification of customer needs and remaining competitive in terms of profit at the top of their product development agendas. I like the increasing emphasis on identifying customer needs

Among the potential research areas respondents were asked about, they felt that developing talent to drive innovation was the most important. The second one was around rapid product development: How to Move Products to Market Faster.

The one that really caught my eye was organizations have allocated the most funds to improvement in developing talent to drive innovation. This is heartening but also a worry.

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A new raison d’être for HRM through Innovation

Innovation is in need of a significant transformation on how it is designed, developed and executed in most organizations. Traditional approaches to managing this simply need ripping up and redesigning to allow innovation to become more the central core.

In most organizations the Human Resource Management (HRM) function seems to have been far too often side-lined on shaping and influencing how innovation should be designed as a critical part of the future for the company. Many of the existing traditional HRM solutions might actually be in conflict and working against innovation actually.

If we look at the broad areas that HRM has to cover and master in organizational development today, it can, perhaps, leave little time for adding in innovation into this array of demands. You can understand that HRM has little time to master a ‘decent’ understanding of what makes up innovation, when they are grappling with so much already but they should. It might simplify or promote a rationalizing of some of the existing practices built up over considerable time as the expedient option but this is still creating a ‘lagging’ set of effects and not offering the ‘leading’ ones that innovation demands. Continue reading

The Real Need Is Achieving Innovation Fitness

So how do we become innovation fit?

www.innovationfitnessdynamics.com is new and perhaps your possible innovation work-out gym.

Firstly stop and survey our world from a new advantage point

Can you imagine standing on top of a mountain, looking out across a vast expanse of nothing but mountains and valleys stretching out before you. If you squint hard enough you can just make out that somewhere in the hazy distance, the end point of your travels. The distance you have to travel towards that much needed innovation understanding, that are made up of so many different dynamics that make you and your organization that much fitter to compete in today’s challenging world seems really far off, or actually is it?

Exhilaration can quickly turn to reality.

Clearly while you are on top of this mountain you feel exhilarated to have even got up to this point. To even get to there you have already made a decision that you and your organization needs to become a more innovation one and needs to look beyond what you have, to what is possible, you are curious to explore this further, you have to, innovation is a strategic imperitive for, adding value, growth and improved wealth creation.

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