How to deliver innovation results: expectation vs reality

Summary

This webinar explores the gap between companies' innovation ambitions and their capabilities, emphasizing key factors for closing it. It discusses the importance of a shared vision, governance, and resource allocation to drive innovation. The session highlights the need for clear strategic choices, transparent decision-making, and dedicated teams that drive innovation from start to finish. Key challenges, such as protecting time for innovation and managing resources, are addressed through real-world examples. The focus is on aligning teams and processes, providing clarity, and fostering a culture that prioritizes long-term innovation while balancing day-to-day operations.

Takeaways

• 😀 Innovation is ranked as a top three priority by 83% of companies, but fewer are achieving high innovation readiness.
• 😀 A shared vision and strategy are crucial for aligning teams and guiding innovation efforts within a company.
• 😀 Defining your innovation strategy is essential—considering where to innovate, whether in technology, markets, or value propositions.
• 😀 Roger Martin’s 'smell test' highlights that strategy means clearly defining where a company wants to play, and you can't just formulate an opposite strategy.
• 😀 Companies often lack a well-defined innovation strategy or have disconnected innovation activities, which can hinder progress.
• 😀 Successful innovation involves balancing 'exploration' (inventing the future) with 'exploitation' (optimizing existing products and processes).
• 😀 Companies, even beyond startups, must innovate to stay competitive, including redefining existing business models or exploring entirely new ones.
• 😀 Innovation strategies should cover a broad range, from improving existing products to radical innovations like new business models or markets.
• 😀 Clear guidance and strategic choices help companies align their efforts, select the right ideas to work on, and avoid wasting resources.
• 😀 Teams need a transparent, evidence-based decision-making process to navigate innovation projects and access funding, ensuring clarity and progress.
• 😀 Protecting dedicated time for innovation is essential—without this, teams struggle to prioritize innovation amidst their regular responsibilities.

Q & A

What is the main focus of the webinar discussed in the transcript?

The webinar focuses on delivering innovation results, specifically addressing the gap between ambition and capability within organizations. It explores the challenges companies face in aligning their innovation strategies with actual outcomes.

What was revealed by the Global Innovation survey from BCG mentioned in the webinar?

The survey revealed that 83% of companies rank innovation as a top-three priority. However, despite this high priority, the number of companies scoring high on innovation readiness has declined, highlighting a gap between ambition and actual capability.

What are the three key areas the webinar identifies as important for delivering innovation results?

The three key areas identified are: a shared vision and strategy, governance, and the allocation of resources.

Why is a shared vision and strategy important for innovation?

A shared vision and strategy provide guidance and alignment for a company. It ensures that everyone is on the same page regarding where the company should go and helps avoid disconnects between innovation activities and the overall business strategy.

What does Roger Martin's 'smell test' reveal about innovation strategy?

Roger Martin’s 'smell test' suggests that a true strategy is one where you can't easily do the opposite without it seeming foolish. It emphasizes that innovation strategy should involve clear, intentional choices about where to innovate and what to focus on.

How does the concept of 'explore and exploit' play into innovation strategy?

The concept of 'explore and exploit' suggests that innovation should involve both improving existing products and services (exploit) and inventing new business models or value propositions (explore). A balanced strategy helps companies manage their current business while also preparing for the future.

What role do portfolios play in managing innovation in organizations?

Portfolios are critical for managing innovation in organizations, particularly as companies mature beyond the startup phase. They help balance the current business operations with new innovations, ensuring that companies both exploit existing opportunities and explore new ones.

How should companies handle resource allocation for innovation, according to the webinar?

Companies should reallocate resources, including profits from existing services, into the exploration of new innovation opportunities. This requires making strategic shifts and investing in new business models or products while being open to killing unsuccessful initiatives.

What is the challenge of 'hero innovators' and how can it be addressed?

'Hero innovators' are individuals who have great ideas but struggle to get started due to a lack of clear processes or support. This can be addressed by creating a transparent and accessible process that guides individuals on how to get started, secure funding, and access resources.

What does the webinar suggest about protecting the time of innovation teams?

The webinar stresses the importance of protecting innovation teams' time. Companies often face challenges in dedicating sufficient time to innovation, but it is essential to prioritize innovation work and ensure that team members can focus on it without distractions from their regular tasks.