Innovation

Fostering entrepreneurial behavior, methods and approaches within an organization, demands a culture for intrapreneurs. How do we really form a systematic approach to corporate entrepreneurship?

A possibility for large organizations is to engage in true Corporate Venturing. Within these programs internal projects can be separated and externally driven projects can be integrated. Developing a strategy with balanced risk and efforts, network, competence and a working structure for this is vital for any organization engaging in venturing.G_Posters-08

We find that organizations toggle around the issue of managing Disruptive Innovation as a value creator. Since resources are scarce and  short-term results are high in demand, the disruptiveness often gets rounded off, so that it fits into the process of continuous improvements, rather than creating new values. This leads us to an inability to extract competitive changes and new revenues from our creative ingenuity. There are ways around this though.

In an approach of innovation portfolio management, it can be visualized how corporate venturing and corporate entrepreneurship fits our strategy. We need to find ways to govern, lead and allocate resources, while attempting to follow a supporting process. Now, the cultural factors behind this is of utmost importance. From choosing functional incentives to fostering an openness to “new”.

When digging into this, we also find ways to structure and organize for radical innovation and radical collaborations.

I am facilitating a workshop about corporate entrepreneurship at this years Innovation In Action. If you feel this or any of the other topics suit your taste, you should consider joining. There are 9 other magnificent workshops to choose from when forming your personal 2 days, 4 workshops agenda.

 

Innovation

When a company is about to make an investment, small or large, the return on investment, time to break even, profitability, margin and time at market are measured. The calculations are often based on direct financial returns, although indirect financial returns are often included in more complex metrics. There are compensation models that favor short-term results, which in turn benefits owners with short-term horizon of their holdings, as opposed to those who invest in building long-term value.Bom

In a world where life cycles are becoming shorter and shorter, or better expressed, faster and faster, and also requires parallel cycles of new products and services alongside the main cycle, the requirements for innovative capacity increases. It is not only the compressed life cycles that affect us. Also the absolute need for sustainable consumption and sustainable industrialism implies new requirements and opens up for new opportunities. How do we navigate amongst these foaming waves?

Need to navigate

The modern western society has in the past 50 years rapidly been weighted towards a knowledge economy. How, then, should our workers treat and address their creativity and loyalty? Well, probably against the workplaces which offer best opportunities for personal development, which requires us to steer the creativity to areas where we can create an outlet for the results. The outlet is naturally where we create the greatest value in relation to the risk involved, in minimum time and at minimum cost in relation to the expected return. Again Return on Investment. But, is this the right way to operate corporate activity? No, the companies who work in a serious way with their innovation have obviously a functioning portfolio-thinking in which strategic and tactical, direct and indirect initiatives share the resources. To balance this portfolio, it must be aligned with the operational strategy.

Well, financial, strategic, tactical, direct and indirect results in a confusing mix. In addition, a concept which is available on a valuation level, but rarely is communicated consistently throughout the organization is Innovation. Have the managers today the opportunity to pursue innovation with the same excellence as other investments? Only if we agree on the definition of each organization, create targets and measure the processes, can we head for the results.

An introduction to Innovation metrics

Innovation Pioneers International is an organization founded by networking innovation experts in the leading Swedish companies. The purpose of the network is to aggregate, produce and distribute practical innovation knowledge and to run a continuous Innovation Agenda. One of the first projects to be pursued by Innovation Pioneers is the project Metrics. Apart from this Book of Metrics, a tool for selecting metrics has been worked out. It is our hope that the reader of this publication finds guidance on how to measure and manage the innovation process.