How innovation works- part 3 – Things needed to encourage innovation in your business #money #business

Reading time – 2 minutes

Category – Business

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You know that innovation is cool.

You and your boss both know it.

You even discuss it in your meetings.

You have read about it.

Then what to do next?

How to get started.

What are raw ingredients as we try to achieve some new innovation.

With eye in your next year promotion and to halt the fall in performance of your department in company, you should try to invest these things on your quest.

1. Time –

Dedicated time simplifies and accelerates chances of innovation.

During your routine which we circumvent using only automatic part of our brain, dedicated time hastens productivity for seeking innovation.

Big companies give time for working on new ideas. It is called self time.

3 M and Google give time for self projects each week.

This has lead to great benefits.

Gmail, Adsense and Google Earth started as side projects!

There should be area in company where employees should be squeezing brain to generate new ideas.

2. Finances

If innovations do arrive; they need money to feed them to survive.

Drug companies invest large part of revenues to search for next products.

Volkswagen invests 6% of its revenues on research.

All big companies dedicate large sums for research.

3. Managerial support-

Commonly even if big idea comes, it is not supported by authorities. It may be due to lack of clarity or idea may be ahead of time.

A strong leader at top with promot decisive approach, helps in increasing output of ideas.

Failures should not be ostracized.

Successful ideas should be appreciated and rewarded.

A visionary manager like Steve jobs could see potential and future in a new idea.

Managers at kodak could not see use of digital camera invented by their engineer Steven Sesson.

General motors started working on electric car in 1996, but killed it’s idea.

GE delayed it’s exit from incandescent bulb business leading to losses.

Similarly Nokia could not see future of smartphones.

Traditional news media could not see power of internet news.

4. Spirit-

Some companies are innovation dependent. They must innovate or have to die.

Like drug manufacturers.

Spacex needs to innovate regularly or it would have fizzle out.

Smartphone makers have to produce ever improving products to keep customers engaged.

Movie makers have to improve with time.

This is both scary as well as liberating.

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One criteria with which companies can judge their innovation success.

Innovation scale rate ( ISR) – It denotes percentage of sales made by new product.

3 M has 30% of its sales in new products.

Similar data is there for Gillette.

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There should be an innovation pipeline for big companies.

Inspiration – The Innovation mandate by Nicholas Webb

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#innovation

#business

#money

#personalgrowth

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