How companies should approach innovation: Six steps to go from idea to implementation

An innovation process with design criteria is a crucial lever for ‘idea to product’.

Executive summary:

• Successful innovation requires structured governance, similar to start-ups, to manage and streamline the process effectively.
• Clear design criteria ensure innovation aligns with a company's objectives, empowering teams to work within defined parameters.
• Encourage idea generation by eliminating friction, using efficient processes, and prioritising promising concepts.

Navigating the waters of business innovation requires more than just a great idea; it demands a structured, consistent, and agile approach. Here's a blueprint for organisations across industry sectors striving for innovation, based on real-world practices and observations.

1. Establish robust governance:

Throughout this process, multi-disciplinary governance is critical. Companies need to manage their innovation arms similar to start-ups within their vast business real estate. An example is how the Pentagon assembled a team of cyberhackers in a dedicated space to continually test and strengthen their cyber defences. Similarly, local organisations must establish governance structures that outline and manage innovation, ensuring a secure, streamlined process.

2. Create clear design criteria:

Without clarity on what the innovation aims to achieve, there's a risk of derailment. Establishing design criteria ensures alignment with the company’s overarching objectives, mission, and vision. This empowers team members to understand the ‘parameters’ within which they can manage their innovation programmes.

3. Facilitate idea generation:

Additionally, decision-makers should encourage an environment where ideas flow freely. This requires them to eliminate friction points and establish clear qualification criteria. In doing so, the organisations will ensure that only the most promising concepts advance to the pipeline of opportunities and initiatives. An example of this is to implement a process that efficiently funnels ideas, assesses their viability, and prioritises them.

4. The role of prototyping:

Once an idea has been shortlisted, it needs to be moved to the proof of concept (PoC) phase. Google exemplifies this: once an idea reaches the minimum viable product (MVP) status, it's critically assessed before receiving further investment and moves to implementation.

5. Align innovation to growth strategy:

It’s not enough to simply innovate. The direction of that innovation should amplify the company’s growth strategy. This alignment ensures that innovation not only adds value but also propels the business forward.

6. Evolve beyond the core service offering:

Historical legacy investments should not hinder organisations. To stay ahead, it's essential to go beyond just the basics of the business. The challenge, however, lies in maintaining an agile mindset, especially when dealing with legacy systems. Running innovative strategies in parallel with traditional business operations can be complex but are vital.

The double-edged sword of customer loyalty

In South Africa, customers can display a strong brand loyalty to their service providers, for example their personal bank. This contrasts with places like the UK and US, where customers switch providers almost instantly and even receive incentives to do so. While loyalty is valuable, it underscores the importance of differentiating through customer experience. In a landscape where customers are less inclined to switch, service providers need to offer truly innovative, unparalleled experiences to retain and attract consumers.

Throughout this, the organisation must understand that innovation isn’t a one-time venture but an ongoing journey. An organisation must recalibrate its approach every few months, ensuring it remains agile, responsive, and ahead of the curve.