HOW DO YOU DEFINE INNOVATION? Before You Begin, Get Everyone on the Same Page

Let’s begin by saying the most important definition is yours. There are plenty of other definitions to choose from if you don’t already have your own. They range from the mild “change”, “improve” or “tweak” to the more radical “disruption”, “upheaval” and “transformation” approach. If you ask five executives in your company for their definition, you’ll probably get five different answers. Arriving at one concise definition of innovation for your company right now can be a challenging activity. 

Some Considerations

Here are some examples of what others have considered for their definition of innovation: 

·        Doing something “differently” can be defined as innovation, but how do you separate that from “continuous improvement” or simply “changing the status quo”?

·        Coming up with a “new idea” can be innovative, but is that all it takes? Doesn’t the idea need to be turned into a product or service that can be sold at a profit?

·        “We want to disrupt our industry” is a great, often overused phrase, but how will you know disruption has taken place? How long will it take to get there? Are there any other innovative possibilities that can occur before then?

·        Modernizing an existing product or service could be defined as innovation, but how will customers, employees and industry analysts define it? Changing the packaging or offering a product in a wider variety of colors might not really be all that innovative to some.

·        Does innovation occur only when it meets the needs of consumers? It may have been Henry Ford who said if he only set out trying to meet the needs of his consumers they would have wanted faster horses, not automobiles. 

·        “We need to identify technology that can help us innovate.” Seriously, do you really think technology is going to be the answer here? In business, technology helps people perform processes in support of a strategy. Starting with a focus on technology is oftentimes viewed as working backward. Focus on the innovation definition, goals and strategy first. Then determine which processes will be involved, the people required, and finally, which technologies could enable it all to happen. The search for technology is done by people and those people need to know what they’re trying to solve and what they’re looking for.

The above examples may not make your innovation definition any easier, but they should provide some additional perspective. Let’s take another approach that may also be helpful. The innovation lifecycle has many components and some of them may not apply to your business. Here’s a quick overview of a typical lifecycle to help identify where focus must be placed and therefore, helping with your definition.

Typical Innovation Lifecycle

·        Awareness of industry and competitive trends as well as emerging technologies can help trigger individuals to identify opportunities and innovative ideas. Oftentimes, this awareness isn’t part of an individual’s job description or an ongoing research capability within their business. 

·        Training on how to listen carefully with the intent to identify “problems” can often inspire an innovative idea. Up to 80% of innovation is comprised of first identifying a problem.

·        Properly motivating employees to identify problems and offer innovative ideas can be achieved by proper reward and recognition programs as well as support from the leadership who are role models and support the company’s innovation goals.

·        Thoroughly vetting an idea can help determine whether the costs outweigh the benefits. Keep in mind that the wrong people vetting ideas won’t produce the innovative results you’re looking for. These “wrong people” are often those more concerned with personal job protection and their annual bonus than what’s best for their company.

·        Turning an idea into a planned and fully executed project can be a major hurdle. Performing project management for innovation projects can be a delicate balancing act with daily operations. Many companies experience high failure rates, and therefore lesser innovation, due to this challenge. Knowing when to accelerate an innovation project can be just as important as knowing when to put on the brakes.

·        Design, development and production processes can often stand in the way of successful innovation. Since many businesses aren’t organized by major process, each step in a process can be inefficiently woven between multiple departments and even locations. Assigning one “owner” for each innovation process along with performance metrics for that process can help with ongoing improvement efforts and therefore, innovation success.

·        Some companies come up with great ideas, turn those ideas into real products or services and then fall short when it comes time to commercialize them for profit. Commercialization would include business development, marketing, sales, brand management, etc. Can you really be innovative if new products or services just “sit on the shelf” waiting for someone to buy them?

·        Once an innovative product or service successfully reaches the marketplace, there needs to be a way in which customer feedback is captured and actually managed. This ongoing effort will help with continuous improvement efforts and the identification of problems that could also help trigger additional innovation.

The above innovation lifecycle highlights can help pinpoint areas that require attention and therefore add to a more complete definition of innovation. A good definition should consider the who, what, when, where, why and how as well as realistic and measurable goals. Once the definition is in place, companies can use it to launch their innovation strategy effort. An innovation strategy, like any other strategy, needs a minimum of three components:

1. Where are we now? (current innovation situation)

2. What we need to achieve? (innovation goals and opportunities)

3. How will we get there? (prioritized innovation projects and programs)

How will you get there?

About Inovayshin

Companies of all sizes and industries have challenges when it comes to innovation. In response, we’ve created an innovation services firm that applies proven Innovation Alignment and other methods to help those companies improve their ability to innovate and sustain that ability over time. Our solutions include the one-day Innovation Alignment Studio, Innovation Strategy & Roadmap, Innovation Roadmap Implementation, and Managed Innovation Services. To learn more, visit us at inovayshin.com. Entrepreneurs and business executives, be sure to check out our “Be Inspired” page for ideas that could trigger your next product or service innovation.