The Three Pillars of World-class Corporate Innovation
My good friend Alexander Osterwalder, the inventor of the business model canvas (one of foundations of the Lean Methodology) has written a playbook (along with his socialize partner Tendayi Viki,) From Innovation Theater to Growth Engine to explain how to build and implement repeatable innovation processes inside a company.
Here’s their introduction to the key concepts inside the playbook.
Over 75% of executives report that innovation is a top three priority at their companies. However, only 20% of executives indicate that their companies are ready to innovate at scale. This is the rencontre for trendy organizations: How to develop a world-class ecosystem that can momentum repeatable innovation at scale.
The playbook describes the three pillars of corporate innovation: Innovation Portfolios, Innovation Programs and a Culture of Innovation. Under each pillar, the playbook describes three questions that leaders and teams can ask to evaluate whether their visitor has the right innovation ecosystem in place.
- Are your company’s innovation efforts exploring or exploiting merchantry modes?
- Does your visitor have a well-turned portfolio of projects that imbricate efficiency, sustaining and transformative innovation?
- What is the health of your innovation funnel or pipeline?
Explore: Search for new value propositions and merchantry models by designing and testing new merchantry ideas rather than execution.
Exploit: Manage existing merchantry models by scaling emerging businesses, renovating unthriving ones and protecting the successful ones.
- Do your leaders get excited well-nigh the wrong innovation programs?
- What results are your innovation programs producing?
- Are your company’s innovation programs interconnected in a strategic way?
To tropical the innovation sufficiency gap, companies can evaluate their innovation programs by asking whether they’reinnovation theater or producing tangible results for the company.
- Value Creation: Creating new products, services, value propositions and merchantry models. These programs invest in and manage innovation projects that create value by producing new growth or forfeit savings.
- Culture Change: Transforming the visitor to establish an innovation culture. This may include new processes, metrics, incentive systems, or waffly organizational structures. These transformations help the visitor innovate in a resulting and repeatable way.
- How much time does your leadership spend on innovation?
- Where does innovation live in your organization and how much power does it have?
- What is your skiver rate for innovation projects?
To overcome the innovation sufficiency gap, companies need to create a culture that enables the right behaviors to produce world-class innovative outcomes. A reliable indicator of the quality of your innovation culture is how innovation teams would describe it. Is it a culture that is dominated by blockers of innovation or enablers of innovation?
- Leadership Support: How can corporate leaders have the biggest impact on innovation in terms of time spent, strategic guidance, and resource allocation.
- Organizational Design: How to requite innovation legitimacy and power, the right incentives, and well-spoken policies for collaboration with the cadre business.
- Innovation Practice: How to develop people’s innovation skills and wits and reap the right innovation talent. How to ensure that we are using the right tools, processes, and metrics to test and transmute ideas in order to reduce risk.
- The three pillars of an innovation ecosystem:
- Innovation Portfolios
- Innovation Programs
- a Culture of Innovation
- Download the Osterwalder Playbook here