The 4 Biggest Issues For Businesses Trying To Innovate

Firms around the globe strive for more effective innovation outcomes. Therefore, to boost their overall performance, firms must have a clear understanding of the underlying matters that hinder innovation capabilities. In an on-going discussion, Tim Kastelle has accurately linked four of the biggest issues for owners and managers driving innovation.

Without the intent of drafting an exhaustive list, Tim Kastelle has outlined and linked four major issues that currently circumstances block innovation’s potential. After all, awareness of the business environment is the pillar of accurate reactions and ultimately, the key to survival.

1. Differentiated and integrative innovation concepts
The first point targets firms forging ahead the one-size-fits-all view to reach sustainable innovations. Understanding the customer’s individual valuations is definitive to generating differentiated solutions. Accordingly, integrative frameworks are helpful means to gain a holistic perspective and direction. Creating balanced innovation capabilities requires integrative rather than either-or thinking.

2. Reinvention and business model innovation
Two trends enhance business model design: shorter life times of current business models, and more radical innovation activities entering the pipelines of most firms.  However, only few firms have established systematic approaches to business model innovation. It is worth to mention that the invention and validation of new business models is based on defining and testing hypotheses through rapid iterative experimentation.

3. Co-creation through open and social approaches
Findings from a recent IBM study confirm that outperformers are more inclined to innovate with external partners – including customers. Therefore, firms are working towards the creation of partnerships and distributed value networks that help them leverage openness, connectedness and co-creation, ultimately combining their natural strengths to create complementary capabilities.

4. Building a culture of experimentation
The experimentation capability of a firm underlies all of the other issues that Kastelle has raised here.  While there is no one-size-fits all innovation tool, experimenting is close to being an innovation skill as such. This capability enables structured learning and hypothesis testing, which are both essential to business model innovation.

This is an excellent article to help SMEs understand how different aspects of innovation are interrelated, and also provides hints on how to tackle such innovation threats.

Read full article » www.businessinsider.com/innovation…

 

  • Alix

    This is brilliant: But the fact of the matter is that great businesses are usually built by tinkering until their great idea emerges

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