Measuring organisational innovation: When to double down and when to pivot

A certain kind of fearlessness and collaboration with young talent today will inculcate innovation in your business.

Executive summary:

• Innovation in large enterprises requires embracing failure, fostering a culture of creativity, and empowering employees.
• Collaboration, diverse perspectives, and adaptability are vital in navigating the complex landscape of innovation.
• The future of innovation relies on harnessing the potential of the younger generation and catering to human needs.

While complex, innovation within any industry presents exciting opportunities. The constant is the challenge of trying to strike the right balance between perseverance and adaptability. So, how does a massive enterprise, typically bound by legacy systems and expectations, chart the course of its innovation pursuits?

In the unpredictable waters of innovation, understanding is key. Most innovations, much like start-ups, may not always see the light of day. Yet, hidden among the many, is that one transformative idea waiting to redefine business as we know it. Embracing this nature of innovation is foundational to fostering a culture of creativity and advancement.

Legacy systems and investments often cast a shadow over larger organisations. The solution? A pivot from fearing failure to championing the mantra of ‘failing fast and forward.’ This shift in perspective isn't about reckless forays but centres on a rapid analysis and adjustment based on what's working and what’s not.

The human element

Talent, often overlooked, sits at the very heart of any organisation’s innovative potential. By constructing environments like incubator hubs, businesses can unlock and harness this potential, empowering employees to ideate and innovate from within.

In the world of innovation, there's a constant interplay between data-driven insights and the intrinsic human needs they aim to address. Recognising that innovation is driven by the age-old conundrum of friction versus pleasure is paramount. After all, the essence of innovation lies in either solving a problem or amplifying a positive experience.

Several global companies have adopted a strategic approach to funding innovation. By allocating dedicated funds, they nurture potential breakthroughs while remaining cognisant of the inherent risks. This investment strategy, varying from treating these funds as cost centres to the more progressive profit centres, speaks to a deeper commitment to the innovative cause.

Change is constant

However, innovation isn't a monolithic entity. It sprawls across a spectrum, from the tangible customer interfaces and backend processes to the nuanced realm of product development. And in this vast landscape, collaboration emerges as a beacon, bringing in fresh, diverse perspectives.

Globally, while developed nations grapple with the rigidity of entrenched legacy systems, developing regions showcase remarkable agility, often leapfrogging over technological milestones. This trend, evident in the rapid adoption of mobile banking across Africa as one example, offers invaluable lessons in innovation and adaptability.

History has shown us the perils of restrictive strategies. Kodak's tale serves as a poignant reminder that while innovation should align with strategy, it should never be shackled by it. Strategies should guide, not confine.

The fate of an innovative idea is not an insignificant decision. And it's imperative that this decision doesn't rest solely on the shoulders of its creator. Diverse steering committees, with members continually evaluating a project's viability, ensure objective assessments, especially during the crucial proof of concept or minimum viable product stages.

Crystal ball gazing

Looking to the horizon, the future of innovation is brightly lit by the promise of today's youth. Their perspectives, needs, and visions will shape markets in the years to come.

Those organisations that adeptly harness the potential of these young minds, offering them freedom and platforms, will undeniably lead the next wave of innovation. Google's ethos, which encourages employees to dedicate time to passion projects, is emblematic of this spirit, weaving innovation into the very fabric of their corporate DNA.