Why Australian Enterprises Suck at Innovation - and What to Do about it.

Yesterday I finished facilitating an Innovation Accelerator, a lunch time program helping attendees understand what applied innovation is and how to successfully drive innovation using the incredible knowledge provided by GInI - Global Innovation Institute .

This morning one of those attendees, a great innovator in his own right Philippe Guichard created a post on LinkedIn sharing his thoughts about the session.

One of the questions Philippe received was from Anthony Bonnici his question: "how does Finbar suggest we "de-risk" innovation?

This question drew out a long response from me, one which formed the basis for this article "Why Australian Enterprises Suck at Innovation - and What to do about it."

In Oct 22 Catriona Wallace authored an article in the The Australian Financial Review "A nation unprepared for new technologies". This article talks in a large part about Australia's ranking on the 2022 Global Innovation index.

When we look at the Innovation outputs in this year's innovation index, Australia ranks 30th.

If Innovation was a sport we would surely be ashamed of our worldwide position, a top place in the world innovation standings might not be as aspirational "to some" as sport, but it would arguably bring our nation much greater long term prosperity than almost anything else, sport included.

https://www.afr.com/work-and-careers/management/a-nation-unprepared-for-new-technologies-20221006-p5bno0

https://www.wipo.int/edocs/pubdocs/en/wipo-pub-2000-2023/au.pdf

So in response to Anthony Bonnici 's great question "how does Finbar suggest we De-Risk innovation" I put forward this response, a response driven through my training as a GInI - Global Innovation Institute certified Innovation professional and Chief Innovation officer.

My response...........

"To de-risk innovation we need to change our starting point. We need to shift Tactical led innovation to Strategically led innovation.

Too often Australian organisations approach innovation as a creative ideation process, playing around, coming up with ideas, treating innovation as something required to build fancy new things. When ideas are generated without a clear understanding of needs, there is a risk of developing solutions that don't address real problems, or provide value to the intended stakeholder. There may be a tendency to evaluate and judge ideas based on personal biases or assumptions, Ideas can be generated without considering feasibility, the ideas may be unrealistic or impractical to implement and can lead to a scattered or unfocused ideation process, with a wide range of unrelated or disjointed ideas.

Sound Familiar?

The mathematical probability of someone coming up with an idea that satisfactorily addresses all the unmet needs, without knowing who they are, or whether or not they are satisfied, is close to zero.

Let's call this approach the Tactical led approach or the "risky' approach, for obvious reasons.

Innovation is not just about generating new ideas, it is a strategic endeavour that requires careful planning, execution, and alignment with an organisation's overall business strategy, a strategy that provides those in tactical innovation teams with a well defined context, required prior to any other phase of innovation work. (validation of problem statements, ideation or mid zone brand, production, distribution strategies.etc)

So how do we shift the needle, how do we learn to not "Suck? at Innovation, how do we start developing a Strategic approach to Innovation, an approach that "de-risks" innovation, provides the guide rails, the governance, the support, the people, the direction that forms the context for the innovation hunting grounds?

Let's start by understanding some of the steps required.

1. Aligning Innovation with Business Strategy: The first step towards effective innovation is to develop a clear innovation strategy that aligns with the organisation's higher-level, long-term business strategy. This ensures that innovation efforts are directed towards achieving the organisation's strategic goals and objectives.
2. Securing Executive Sponsorship and Leadership: Innovation programmes require the full support and commitment of executive-level leadership. Australian organisations must secure the necessary sponsorship and leadership to drive innovation initiatives forward and ensure their success.
3. Cultivating an Innovation-Friendly Culture: An organisation's culture plays a crucial role in fostering innovation. Australian organisations must cultivate a culture that encourages experimentation, risk-taking, and continuous learning. This involves creating an environment that nurtures innovation projects and supports employees in their pursuit of new ideas.
4. Embracing Change and Resilience: Innovation often requires organisations to adapt and change in response to evolving market demands and technological advancements. Australian organisations must embrace values that reflect a willingness to change in order to remain relevant and resilient over the long run.
5. Establishing Roles, Responsibilities, and Structures: Effective innovation requires clear roles, responsibilities, and structures within the organisation. Australian organisations must establish the necessary frameworks to facilitate collaboration, communication, and decision-making across different departments and teams.
6. Implementing Processes and Performance Metrics: Innovation programmes require robust processes and performance metrics to track progress and measure success. Australian organisations must implement appropriate processes and metrics and use them effectively to monitor and manage their innovation efforts.
7. Securing Funding and Budget Management: Innovation initiatives require adequate funding and effective budget management. Australian organisations must secure the necessary funding for their innovation programmes and put in place appropriate budget management processes to ensure the efficient allocation of resources.
8. Enabling Innovation through Training, Tools, and Partnerships: Innovation thrives in an environment that provides employees with the necessary skills, tools, and resources to pursue new ideas. Australian organisations must invest in training, mentoring, and market intelligence to enable innovation within the enterprise. Additionally, establishing connections with external partners and ecosystems can provide valuable insights and opportunities for collaboration.
9. Encouraging Bottom-Up Participatory Innovation: Innovation should not be limited to a select few individuals or departments within the organisation. Australian organisations must engage employees at all levels in the innovation programme, encouraging bottom-up participation and fostering a sense of ownership and commitment to innovation.
10. Recognising and Rewarding Innovation: Recognising and rewarding individuals and teams who contribute to innovation is crucial for maintaining motivation and enthusiasm. Australian organisations must implement fair and effective incentives, rewards, and recognition programmes to encourage and celebrate innovation successes.
11. Leveraging Internal and External Communications: Effective communication is essential for promoting innovation both internally and externally. Australian organisations must leverage internal communication channels to engage employees and build awareness and enthusiasm for innovation initiatives. Externally, communication efforts should focus on promoting the organisation's innovation brand and cause to stakeholders and the wider community.
12. Measuring and Realising Innovation Outcomes: Ultimately, the success of an innovation programme is measured by its impact on the organisation's business outcomes. Australian organisations must ensure that their innovation efforts generate real and measurable positive impacts, such as increased revenue, improved efficiency, or enhanced customer satisfaction.

Pursuing innovation through a strategically aligned set of systems, processes, and methods is crucial for Australian organisations to remain competitive "de-risk innovation and thrive in today's business landscape.

By adopting a comprehensive approach that encompasses the key elements outlined in this article organisations can effectively start to "de-risk" their innovation efforts and through using Frameworks, systems and knowledge from organisations like GInI - Global Innovation Institute these prganisations can achieve sustainable success.

It is important to recognise that innovation is not a one-size-fits-all endeavour, and organisations must tailor their approach to suit their unique size, capabilities, and strategic objectives. By doing so, Australian organisations can unlock the full potential of innovation and drive long-term growth and resilience.

My goal with this article is to start a conversation as to how we as a nation might uplift our innovation outputs, building long term prosperity for our nation.

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