5 > People & organisations
tension between taking risks and minimising
failure as products and services near market.
game-changing innovation
where the impact on the business can be managed.
The Pentathlon Framework can be used to describe a structured process
that removes the risk of failure as ideas progress through the 'Innovation Funnel'.
where it is most needed
selection and implementation, identifying the business priorities
and ensuring senior management buy-in at an early stage.
The strategy may recommend acquisition, a new supply chain or new skills.
2 > Ideas Generation
to problems and challenges.
prioritisation of ideas
of ideas when incomplete information is available
of ideas to market
to move ideas from conception, through implementation
to market in an environment of high uncertainty.
To be truly innovative an organisation needs to have a culture that encourages innovation.
There are many theories over how this may be achieved and we outline some of the most interesting ideas.
- Organisational structures – aligning to markets is effective provided the strategic business units are given sufficient authority. At a project level autonomous teams can be the best way of progressing radical innovations. Some companies have adopted an ‘innovation manager’ to help drive through change.
- Power structures – a strong relationship between manufacturing and R&D can nurture continuous improvement and break down the walls that seem to develop organically. The risk of poor cross-functional awareness is an ‘over the wall’ mentality where problems are thrown to the ‘other side’ to deal with instead of cooperatively through discussion.
- Symbols – recognising innovation and its contribution to the company through displays in the entrance hall, featuring in advertising, positive internal communication – can all promote pride and confidence.
- Stories – managers that use stories can communicate effectively and enlightening stories are inspirational.
- Routines and rituals – two elements of best practice is promoting new ideas and tolerating mistakes. eg DuPont’s use of the phrase ‘it was a good try’.
- Control systems – while new ideas should be encouraged they need to be managed and there are techniques available to manage this.
More tools and techniques for creating a culture of innovation are discussed in the tools section.
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