What you find on the left is the word RISK written in Chinese. This word is made up of two characters, danger and opportunity. It expresses the very sense of risk. The more you risk, the higher the return of investment you expect. If you want to risk less and invest your energy (money, people, whatever), you’ll also expect less return.
I think it’s the very same with innovation.
Since the beginning of the global crisis, the competition in almost any market has focused on resistance strategies. That has actually meant spending best efforts to make efficiency (cost cutting, improving processes, etc). In many cases that hasn’t been enough and laying off people followed. There probably must be some limit to the efficiency you can do.
My view is that concretely investing in innovation is not an option anymore, if you want to differentiate your value proposition in your market and set up the present and future business for your company, your customers, your working people.
The point is that chances to make mistakes are high and the formerly spread innovation model, based on a closed and strictly R&D approach, is not affordable anymore, because it typically requires monolithic investments. The Open Innovation paradigm is more than an option.
Plus, the startup movement has long grown up over the point in which it’s become systemic. It offers the great opportunity to in-source marketing analysis and innovation value very cheaply, according to a scalable and affordable model.
That doesn’t mean you should dismiss your R&D, of course. My suggestion is that you set up your corporate innovation portfolio, differentiating with both, incremental and disruptive contents, in terms of potential impact and affordable feasibility.
I think it’s the very same with innovation.
Since the beginning of the global crisis, the competition in almost any market has focused on resistance strategies. That has actually meant spending best efforts to make efficiency (cost cutting, improving processes, etc). In many cases that hasn’t been enough and laying off people followed. There probably must be some limit to the efficiency you can do.
My view is that concretely investing in innovation is not an option anymore, if you want to differentiate your value proposition in your market and set up the present and future business for your company, your customers, your working people.
The point is that chances to make mistakes are high and the formerly spread innovation model, based on a closed and strictly R&D approach, is not affordable anymore, because it typically requires monolithic investments. The Open Innovation paradigm is more than an option.
Plus, the startup movement has long grown up over the point in which it’s become systemic. It offers the great opportunity to in-source marketing analysis and innovation value very cheaply, according to a scalable and affordable model.
That doesn’t mean you should dismiss your R&D, of course. My suggestion is that you set up your corporate innovation portfolio, differentiating with both, incremental and disruptive contents, in terms of potential impact and affordable feasibility.
The more you’ll invest in disruptive innovation, the higher the potential value (impact or plausible benefits) you’ll create for your company. But the lower the likelihood to succeed. That means choosing ideas located in the bottom-right corner of your matrix.You can compensate such investments with some being less risky, I mean those (located at the top-left corner) having more chances to get to concrete business.
Innovation appetite is related not only to your entrepreneurial attitude, but also to your actual and current possibility to invest in innovation opportunities. What I propose here is to use such elementary model to express it and help yourself build a balanced portfolio of incremental and disruptive innovation and to focus your energy only on the ideas that properly fit with your innovation appetite.
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