It's just a reality - some businesses are thriving, while others are struggling to keep up. When it comes to innovating, this is particularly true. Some businesses are just better at capturing and managing ideas and creating value by implementing them.
It all comes down to a critical, but often overlooked business function - innovation management. Managing innovation is not about random bursts of creativity, but rather about a structured approach that fits perfectly between the business strategy and execution. That's the reason why establishing a proper innovation management function is not just a good idea - it is in fact a necessity for everyone.
When someone mentions innovations, most people think about groundbreaking products or services, based on the latest and greatest technologies. Very few people think about how these innovations come to life. This is where innovation management plays an important business role.
The business strategy -> innovation -> execution sequence
If we imagine our business as a family vacation trip, we might notice some key steps that have to be taken. The first step is to decide on the destination and the best route to get there, as well as set the objective of having an enjoyable trip and a relaxing vacation. This is our 'business strategy'.
Many at this point just leap into the 'execution' step. In other words, they start driving, following the planned route, and adapting to any surprises on the road' and somewhere along the way realize that there were a few things that should've happened in between. They forgot the snacks for the trip, one kid is thirsty, the other is hungry, the third one forgot to charge the phone' mom spilled coffee in the car, dad forgot his favorite shoes' you get the picture.
The strategic objective was to have an enjoyable trip and it failed soon after takeoff - because the family missed a critical step. They didn't ideate, think about scenarios, or equip themselves with creative solutions and plans.
Understanding the innovation management bridge
Innovation management acts as the bridge between our grand plans (business strategy) and the actual work (execution). It ensures that our innovative ideas are aligned with our strategic goals, which is essential for turning vision into reality.
Business strategy
Business strategy is our roadmap. It outlines where we want to go and how we plan to get there. This involves setting long-term goals, understanding our market, analyzing our competition, and identifying our unique value propositions. Our business strategy provides a clear direction and helps us allocate resources effectively.
Innovation management
Innovation management is the process of managing innovative ideas from inception to implementation. It's about creating an environment where creativity thrives, and then systematically developing and enriching those ideas through stages like idea generation, evaluation, prototyping, and testing.
Execution
Execution is where our strategies and innovations come to life. It involves taking the evaluated, refined and tested ideas from innovation management and putting them into action. This includes project planning, resource allocation, and risk management to ensure successful implementation.
Connecting business strategy, innovation management and execution
Outputs from our business strategy have to be forwarded to the innovation management for the bridge to work. For example:
- Our strategy defines our target market and competitive landscape. Innovation management uses this information to brainstorm new products or services that meet market needs
- Our strategic goals are often shaped by what we know about our customers. Innovation management leverages these insights to develop solutions that truly resonate with our audience
- Our strategy determines where we allocate our resources. Innovation management ensures that these resources are used efficiently to develop viable, innovative ideas
Once we have our innovative ideas, we have to redirect them into execution. For example:
- Innovation management includes developing prototypes and running tests. This process helps refine ideas into workable models before full-scale production or implementation
- Before execution, innovation management translates ideas into actionable projects. This step involves detailed planning, setting timelines, and defining milestones
- Innovations come with uncertainties. Innovation management identifies potential risks and devises strategies to mitigate them, ensuring smoother execution
Execution is where the value is finally generated. However, to generate this value in a structured, repeatable and predictable way we have to create all the mentioned connections.
Practical next steps for establishing an innovation management bridge
Innovation management is not only about wild creativity and spontaneous ideas. Effective innovation management is much more structured. Fostering a culture that encourages innovative thinking is great, but ideas have to be systematically and patiently matured from conception to implementation. A robust innovation management function makes a difference, because it transforms abstract ideas into tangible results by providing a structured process that ensures alignment with our strategic goals.
How would we get there is a matter of choice. One way or another, there are some practical steps that can be taken. For example:
- Form an innovation management team responsible for overseeing the process from idea generation to implementation
- Establish clear, documented processes for idea generation, evaluation, prototyping, and execution
- Foster an environment where employees feel encouraged to share their ideas without fear of failure
- Leverage innovation management software to streamline processes and track progress
- Conduct regular reviews to assess the progress of innovation projects and make necessary adjustments
The point?
The business strategy -> innovation -> execution sequence is not a theoretical model - it's a practical roadmap for success. The innovation management bridge enhances our ability to compete and drive sustainable growth.
Just like any bridge, it helps us cross to the other side. It's not impossible to do without it, it's just easier, faster and more predictable.
And it keeps us from getting wet!