Building an innovation framework that has real capabilities at its heart.

SCA FormulaI’ve strongly believed when you begin to think through a framework for innovation, see my last article as an example, you also should equally need to recognize the capability framework that you will need to build into this.

Working through these as essential combinations can become the real enabler.

Here is my solution that I think is worth working through, to firstly absorb and then consider for applying to your own innovation building activity. Try it!

I have worked on a formula SCA = II + OC + EE + MLC + RNE for this. I have never published the make-up of this in the public domain before, although I had briefly outlined it in a past post here. In that post I outline my thinking and I do not think it needs repeating, does it?

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Figuring out a different strategic alignment with innovation being central.

Strategy as we have previously known it is officially dead. Strategy is stuck! Competitive advantages have become transient. We are facing situations where advantages are copied quickly, technology is just one constant change, and our customers seek other alternatives and things move on faster and faster.

In a new book written by Rita Gunther McGrath, a professor at Columbia Business School in New York and one of the world’s leading experts on strategy, she has been exploring the changes rapidly taking place called  “ The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business

 “Strategy (in the past) was all about finding a favourable position in a well-defined industry and then exploiting a long-term competitive advantage. Innovation was about creating new businesses and was seen as something separate from the business’s core set of activities.” “Sustainable competitive is not just ineffective, it’s actually counter productive” says Professor McGrath.

She rightly states:“Think about it: the presumption of stability creates all the wrong reflexes. It allows for inertia and power to build up along the lines of an existing business model. It allows people to fall into routines and habits of mind. It creates the conditions for turf wars and organizational rigidity. It inhibits innovation.

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Linking innovation context to the process

Time passes extremely quickly, particularly when you enjoy yourself, or so it seems for me. I was surprised, going through some of my past blogs, the time between related entries on the need for having in place a sustaining competitive advantage framework on innovation, has been longer than they it should have been. This blog is the third entry on this subject.

Always, always and always do I see organizations struggle to align themselves for their innovation activity, why is this? Either alignment of innovation into the strategy they are (assumedly) following or shaping innovation into the context of where and how innovation can fit.

I’ve written on this often enough actually, and argued the need for building a more sustaining innovation framework.  I have been working for some time within one of my formulas on this with its given framework of II + EE + MLC + OC + RNE build towards = SCA. I somehow suspect you need nudging on what this means

Required past reading possibly needed here.

Without duplicating more than necessary you need to go back and read two previous blogs on this

The first was written in August 2010 and entitled “A formula for Sustaining Competitive Advantage through Innovation”. The link is here:  http://bit.ly/95kCI1

The second was written in June 2011 and entitled “Sustaining is Pivotal to Making Innovation Progress”. The link is here: http://bit.ly/lPLssm

Both offer a helpful introduction to the framework and formula.

The next part of the equation

This blog ‘advances’ this framework by attempting to link the context of innovation into a process to think through. I say attempting because we need to accept each building process is different, and unique to the organization and the circumstances of what they want innovation to achieve, besides the standard reply “growth and profit”. Doesn’t this always sounds like the famous question asked at beauty pageants: “So what’s the most important issue for you?” asks the compare with the reply “world peace”. Oh, I wish it was so simple.

Those leaders that talk of “growth and profit” from innovation seem to reduce it to just a sound bite, I just wish it was so simple. I do wish the majority of our business leaders would get ‘into’ innovation understanding a lot more. Innovation breaks down always outside the CEO’s executive door and it really does need them to step outside and get more fully involved as it is a major area to succeed at if a longer tenure is in their minds.

Still, I digress. Here I outline how I see a typical linking through of a context to innovation in a ‘flow through’ process that is shaped along the II + EE + MLC + OC + RNE build towards = SCA, framework.

Innovation Alignment, Context & Process

Innovation Alignment to the Corporate Strategy does need working through. It needs linking to business goals and strategy, to the role innovation plays within this, the type of innovation portfolio you wish to design and work upon and the delivery and adoption needed so the organization ‘aligns’ itself. You need a thinking-through process to align context into activity.

This takes time, it needs sustaining effort but it needs leadership to understand the critical connecting parts to do this. It needs a defining framework that I see as separate to what I’m offering here. On my present rate of outlining this it does seems sometime next year for that – not good news for those interested.

Watch this space

Actually let me share a little secret between us,  I’m working on a more radical, visually appealing and exciting way to approach this now but within a joint collaboration around this critical issue. So, who knows this might be discussed earlier than my past track record of once a year to move from one aspect to another. It needs to be and I’m sure my collaborating partner on this will be pushing me a lot harder going forward.

Sustaining is Pivotal to Making Innovation Progress

The greater challenge today with innovation is to build a more sustaining framework for innovation to be consistent, like a beating heart, day in and day out.

The struggle is what constitutes the right areas to frame and build innovation capability upon? I argued last year in one of my previous blogs there was a formula. If you go to “A Formula for Sustaining Competitive Advantage through Innovation” at   http://bit.ly/95kCI1 it introduces this.

Now we need to align this further.

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A Formula for Sustaining Competitive Advantage through Innovation

Sustainability is central to innovation’s future progress

Today’s challenge for me is not only to be building the innovation capacity but also to be establishing clear ways on how we should set about sustaining it. Increasingly it is necessary for organizations to have a capability and capacity to sustain Innovation so it can provide the stimulus for lasting growth. To get there though, it does seems this must be through continued learning so your capabilities become stronger, evolving and more unique, thus making them more difficult for competitors to understand and imitate.

Let me outline an innovation framework that builds capability through a sustained approach.

When you set out to build capability to be sustaining you need to consider there are two types of capabilities, distinctive, which are the characteristics of the organization which cannot be replicated by others and reproductive, which can be bought in by the competition but always need to need to be appropriate to any objectives you are trying to achieve. Continue reading