Connecting innovation activities | Paul4innovating Innovation Views

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?

The need for Transformational Innovation

Transformational innovation is increasingly needed to cope with the change needed in many organizations to find a new or repositioned value proposition.

Transformational innovation is one of the hardest, if not the hardest, to achieve. When you are required to become (really) different at the core, you face the inherent conflict that making change is where clear leadership can only bring about, guiding the changes required through this highly disruptive period and providing the compelling story of the compelling future that provides a fundamentally better state than the one occupied today.

We have many innovation outcomes to choose from, including incremental, distinctive, radical or disruptive. Today we focus more on open innovation where a greater external diversity combines with internal expertise to generate the potential for something fundamentally different. Today we have technology as an enabler and applying innovation ecosystem thinking in designing open platforms so this network of experience can be exchanged, shared and developed.

Yet transformational innovation does require something really different.

To become different, you have to go beyond adding innovation at the periphery, bolting new concepts onto the existing core, you need to dismantle the core fundamentally.

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.

An innovation framework that offers a formula for sustainable advantage

*A formula to build a framework for sustainable innovation*

Here is my solution that I think is worth working through first to absorb it and its combination. Then apply it to your innovation-building activity as a framework for innovation. Each time you are reviewing innovative activity, run through this formula in your head to see if each of the parts is embedded into the work.

I have worked on the formula SCA = II + OC + EE + MLC + RNE for many years.

In that post, I detail the make-up of the formula, made up of the combination of positive relationships between the following interrelated parts.

We are or need to be, in search of a sustainable future where we can constantly build upon innovation capabilities, capacities and competencies that can be refreshed, strengthened and sometimes reduced to meet the circumstances.

The formula SCA = II + OC + EE + MLC + RNE makes sense to me. How you build out these yourself further adds more uniqueness and source of advantage.

The linkages of innovating purpose

Whenever I get into conversations about innovating, we always hit difficulties on the question, “how can I build this well and be sustainble?” Hence, I often try to build an extended narrative for what makes up the innovation capability building and understanding for the future. I frame this as the linkages of innovation purpose.

This opening narrative becomes increasingly important when you argue the move from our present way of thinking and building innovation systems, often linear and spread across different teams and islands of internal knowledge. into future ones built far more around innovation ecosystems in thinking and design that are integrated and connected, to open up conversations and exchanges, seeking common points of value in a broader network of solution providers.

I outlined in a post in May 2022, “linking sense of innovating purpose“, my ten points of linkage need, and I want to build on this further here in some explanations for each of the linkages..

I want to go deeper into these ten linking parts, breaking them down a little further.

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.

Barriers to innovation, the cause and effect.

*Seeing the barriers, the causes and effects*.

I am on a personal mission to convince innovation software providers, corporations and innovators to change how they undertake innovation.

In some recent posts, I argued that we need to adopt a broader innovation ecosystem thinking and design. I stated in one recent post, “We must promote more dynamic environments and the constant desire that organizations and their people have to be fit for innovating purposes, adaptive and fluid in such highly challenging and confusing times.”

I do think we need to restate the current barriers to innovation.

These barriers do not ‘magically’ change by delivering what I believe moves us to a better system for innovation, that of an ecosystem and platform architecture. Still, barriers do need to be consciously built into any new thinking as ones “to be resolved” in any new solution design.

Recognizing the present and ongoing barriers to innovation needs solutions to be built into any future design. Let me outline many of these here, building further the case for necessary change.

Today most organizations have barriers towards creativity, ideas and innovation.

Why do we need to change our thinking about innovation?

The Innovation Ecosystem Cascading Effect

I have been arguing in recent posts about the need to change how we approach innovation. We need to think about designs around innovation ecosystems.

In a series that builds the argument so far, I have provided the essential context within this post” Please, we need a different innovation narrative” followed by “Building out our innovation ecosystem in design and thinking.”

My personal energy is drawn from all the challenges we face, looking to help find solutions.

We must promote more dynamic environments and the constant desire that organizations and their people have to be fit for innovating purposes, adaptive and fluid in such highly challenging and confusing times.

Achieving this innovation ecosystem thinking does require a profound shift in how innovation is viewed and approached in the business landscape today and in the future.

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.

Please, we need a different Innovation narrative

(Visual adapted from AFSC explaining a narrative, in this case, social justice)

I have been struggling for quite some time with innovation’s increasing difficulties in influencing growth and achieving real impact.

I see many comments on the failure of innovation, in its inability to be at the core of an organization’s ambitions for growing and changing. Actually it is a long list of issues and concerns that we so often paper over and don’t fully address. There is a time for making a real change and I feel that could be now by shifting our thinking towards innovation ecosystems.

Let’s reflect first on the constraints or barriers that innovation faces, much self-imposed.

Innovation “fights” to attract resources, to gain management attention or to appreciate fully the difficulties and uncertainties in the time it takes, in its potential risks and its need often for a more ambitious and bold commitment of support and belief.

Our innovation processes stay locked in islands of knowledge, stubbornly not flowing across organizations, informing others and giving the right levels of insights, support, or collaboration needed. Innovation software management continues to be sold piecemeal, so often just bolted onto the other selected parts already in place, not being optimized.