Archive for the ‘Innovation’ Category
Business is moving at a dizzying pace and being able to innovate effectively and quickly is a high priority for all companies. But what are the key innovation management issues that are facing all of the businesses at the moment? There are four key issues regarding innovation which include: specialization of innovation system, business model innovation, co-creation through social and mobile, and building an innovative culture. Understanding these issues will help to increase your organization’s ability to innovate and stay competitive in the growing global economy.
Specialization of Innovation System
An innovation system is not standard for all companies. Any business that implements a system has to take the time to create its own unique process. The key components remain the same and include: idea creation, idea capture mechanism, idea development, viability testing, and then investing in the winners while killing the losers. But how your organization actually implements all of these components is highly specialized based on resources that can be dedicated to the process.
Business Model Innovation
The standard and established business models are not holding true and like everything else they must adapt or they will suffer. Using innovative problem solving, your organization can increase what is working about your current business model, while discarding or reshaping the components that aren’t performing. Creating a process that will consistently analyze and then innovate on the problem areas of the business model will help to keep the company using a profitable business model. Implementing different business models in parallel to expand business will help to identify and capitalize on the potential business opportunities that are slightly outside of the current scope.
Co-creation through Social and Mobile
Leveraging technology to not only used to interact with customers but also co-creating business products and processes will help to customize your business to match the needs of your customers. Innovating using technology and the data that you gain from the social and mobile interactions will allow the organization to get very specific and increase value, customer service and brand image at a much more rapid pace than ever before. Customers will tell you what to innovate and freely give up ideas if you just take the time to listen to their needs.
Building an Innovative Culture
Creating a culture where customers and employees are encouraged to discuss and experiment will improve the innovation capability in your organization. The best ideas aren’t usually thought of right off the bat and it takes time and consistent tinkering to round out an idea into a gem. Using all of the resources optimally requires the company to build an innovative culture with open communication and experimentation. The better that an organization can create an effective innovation system, the better that additional resources will be available in order to test more ideas and further the innovation. Supporting the innovation culture within your organization will take time and resources but will probably be the best investment that you can make.
Consistent innovation is a required aspect of all businesses that expect to become and maintain market leader status. The better that you can create an innovation system that is specialized to your organization the more benefit you can get from your innovation. Business models have to be adapted and innovated on as often as possible to stay relevant and co-creating with social or mobile media will help you to stay a step ahead. Investing in creating an innovative culture for your organization will tie all of your effects together and ensure that the innovation continues for years to come.
Innovation strategies will start with the idea and having the courage to place those plans into action. Many people have an idea, but are not willing to step outside their comfort zones to get these strategies in fruition. Innovations strategies must begin more with the just the idea; the necessary planning and action is necessary to formulate an idea and turn it into a profit.
Many people have great ideas, but do not have the entrepreneurial skill to take a chance and invest in their ideas. It truly takes passion and a believing in one’s self to truly be successful. One must believe in themselves before others can believe in that entrepreneur and what they stand for. When it comes to entrepreneurship innovation, it is always necessary to be confident and have the passion in whatever product, invention or service someone may be selling.
For those who want to use entrepreneurship innovation strategies should always include personal confidence formulating a plan. Planning and having the courage to truly make a solid debut in the public market is one of the hardest things to do, but it can be easier with a little courage and a feeling that a product or service will be successful. It also takes finding the right contacts: investors, wholesalers or suppliers who truly believe in a product or what an entrepreneur is trying to accomplish. This will instill a sense of purpose and to not let those down who may have invested both time and money into an entrepreneur’s skills. It will be a great sense of satisfaction to truly accomplish one’s goals on their own, and it all depends on that person is hoping to accomplish. Getting rich should not be the primary goal of an entrepreneur; finding passion and desiring to do better is what truly should drive the entrepreneurial spirit.
The point is to believe in a product and using that passion to truly make a difference and contribute something worthwhile. Mixing passion with a drive to better is a key feature of the entrepreneurial spirit, and it is a great to accomplish many great things. There are so many ideas and innovation strategies that one can use, and all one has to do is look to their passions in order to be successful. There are many problems out there in the world that need solving so if helping people is a good trait then many strategies and technologies are available for entrepreneurs to use at their disposal to contribute something worthwhile to mankind. Those with the inventive spirit can truly accomplish something great.
For those who are a good at selling or business can find a great product to sell online and for the more creative minded, they can make something that will appeal to a wide variety of consumers. There are so many avenues that can turn average people into entrepreneurs, but it takes the willingness and know-how to place ideas into action. It will take some research and a sense of self worth in order to pull off entrepreneurship and innovation.
Knowledge determines all the coming improvements, innovations, know-hows, following the preset rules, laws and standards. If you have no knowledge, you have nothing.
Yes, there can possibly be fantastic cases when skills of individual employees would allow the achievement of an extraordinary result for the company. However, this is more an exception than a rule.
You need a system to build up an innovation company. This should be the system of knowledge management and transformation. This should be the system targeted at achievements of goals of company growth.
Talents are the main working elements in the economy of knowledge. Search, growth and retaining of talents are the key tasks for the business of modern company.
We need talented employees with skills, knowledge and experience, which we can use for the growth of the company. We don’t want to patch the everyday HR problems!
Of course, we need! However, disappointingly, these employees already work, create and achieve goals of other companies. It means that in the majority of cases you have three options:
Option 1. Play roulette, with long persistent search for ideal employee for your tasks.
Option 2. Train your existing employees by yourself.
Option 3. Forget about innovations and improvements and become average…
The optimal option is training. But when we talk about training, there is always a fear that newly-trained specialist can leave the company!? This is the question in the area of corporate culture and loyalty of your staff.
Who is responsible for the high corporate morale?
Who is responsible for the internal atmosphere in your company, targeted at the improvements?
The most wide-spread question in the implementation of innovations is: “Why should employee propose something new and be responsible for it? He does his current work, receives money and happy about that!?”
The answer to this question shows that company does not have corporate atmosphere targeted at the search of innovations and improvements. We will not get results without an atmosphere. Without creation of an atmosphere we will permanently answer terrible questions like “Why should he..?” for all aspects of innovations and improvements.
Create the atmosphere of high corporate morale, and your company will gain a competitive advantage. You will be full of ideas and emotions. Your internal business processes will develop like a living organism, ensuring the growth of financial indicators of the business.
Here is a simple example of atmosphere of knowledge: driving skills. While driving, we follow the road situation, signals of traffic lights, street names, dashboard dials. We constantly use information and knowledge for getting from point A to point B.
- Does anybody have a thought to neglect this information and knowledge?!
- Drive on the road with eyes closed?
- Or forget about the fuel indicator?!
Then, why do we forget about the knowledge management when managing the company? Why do we prefer acting on a hunch?
Does your company use knowledge for its growth and development? It is easy to assess, just answer the following questions:
- Do you link new knowledge with financial indicators, with certain financial indicators?
- Who is responsible for knowledge management in your company?
The key task of the HR department is development of employees. This is to ensure the growth of the company, the implementation of company strategy.
This is exactly the implementation, but not the design and, all the more so, not the initiative.
The initiative and design of the strategy should come from the owner and top-management of the company. Otherwise, the HR manager controls everything. Is he ready for this? Does he know how the business works, or how the financial indicators correlate? What are the targets of the company?
Remember about Desire and Reality. The desired does not always match the situation in your company.
Use the following algorithm for the first steps in creation of an innovative company, oriented on knowledge management:
1. Determine the Strategy of the company: simple, brief, clear. Who will do this: the owner or the executive manager? The approximate size is 1-2 pages.
Contents of the Strategy:
- main customers,
- main competitors,
- tasks for the next 3 months, 6 months, 9 months, 1 year, 3 years.
The Strategy is a working document, not a dogma of the law. You need to work with the Strategy, review and, of course, realize!
2. Set the role of knowledge in the competitiveness of your company, answering following five simple questions:
- Are your employees ready for training?
- What do your employees need to learn?
- How will new knowledge and skills influence the financial indicators of your company?
- Who is responsible for the training process in the company?
- How will you control the achievement of the result?
Knowledge management in the modern company is a key resource of innovations and competitiveness. But you must remember: If you want to manage the knowledge, you need to have employees oriented on the application of knowledge as the method of company growth. You need to search and train these employees. These employees will be the new, so-called “knowledge”, resource of your company.