Why so many innovations fail On the success of the project in the “How to decide”
Many companies have a claim or to advertise to be particularly innovative. In 95 percent of all innovations fail, as a statistics, Harvard Business School Professor Clayton Christensen shows. Why is this so? How can companies bring successful innovations?
CompaniesWhether a company is innovative or it can be any, depends on many different factors.
Who does not adapt to new market developments, is suspended in the international competition quickly. Most of the companies have thus taken up the topic of Innovation on the Flag.
Innovation is, by Definition, a novelty that brings added value or Benefit. This can be a new product, invention of new Materials, the development of new Services or just a new pricing model.
Every aspect of the business operation is suitable for Innovation. Often, however, only a limited area is used, when it comes to Innovation. This Innovation comes mainly in four areas of a company, particularly evident:
- 1. The optimization of operational or organisational processes and production;
- 2. The improvement of all processes and Services that have to do with the customer, known as the Customer Experience improvement;
- 4. Innovation around new products and services.
These four areas of Innovation illustrate the different ways in which firms innovate can be incremental, disruptive, architectural and radical.
It is clear that Innovation means change, and for this it needs the support of the management, the cultural basis and Change Management, which also retains the risks and costs associated with Innovation in mind. The company culture is crucial to how successful a company with innovation.
In a survey by McKinsey, 84 percent of executives reported that Innovation is important to their growth strategy. This is a good starting point, because it is only when Innovation is also for the Management Team is important and the very top is supported, it can create a good culture of innovation.
What is a good innovation culture consist of?
Innovation requires the courage of the Individual. Therefore, a basic premise is that Innovation is at the heart of the company’s strategy and, accordingly, the massif is tumbled – on all levels. Businesses need to create Jobs around the topic of Innovation and define your employees, enable, self-selected and organized projects, Innovation in every area of the company and, not least, agility, creativity, and Collaboration to promote.
In addition, it needs to be trust, risk-taking, and technological Tools to analyze data and innovations with the facts of Deposit. Failure must be possible. If you are continuously on the positive and the company is so important effect of Innovation spoken and is asked to be employees, the courage to take to be prepared to fail and to try again.
Innovation killer: risk and Failure
Innovation requires companies and, specifically, the parties Involved in it, that you can move out of their comfort zone. In addition, Innovation always involves a certain risk. A good culture of innovation Failure is based on trust and Learning. The fear of Failure is the biggest innovation killer is.
Nevertheless, it is understandable that a selection of innovations must also be eventually weighed in success for the company, and risks and cost. Probably the greatest challenge in terms of Innovation have described the economists Deborah Dougherty and Cynthia Hardy well: “in General, innovations are not the result of company approval, but of individuals – and these innovation systems are fragile.”
Entrepreneurs in large, growing companies, environments, the ability to link innovations with the existing resources, operational processes and business strategies is lacking. You have come to the conclusion that ‘innovators’ know very little support from upper Management, if you happen to need it – and often missing completely.
There are “born” innovators?
If individuals are the drivers of Innovation in the company: What makes an Innovator? First of all, it is a question of the ability is that Very few are born innovators, many can learn it, some never will. In addition, it is a question of behavior: innovators think differently, which leads them to act differently.
At the same time innovators of the five senior analyst skills: Association, observation, Questioning, networking, and experimenting. For this you will need on the one hand, supporters, which will help you to understand what you don’t know, what you understand and what is not desired in the company. On the other hand, you need allies, which make the idea larger.
How to make a hidden potential for innovation to uncover and develop?
First, companies should be an innovation Team (often VentureX, xForce, or xLab called), in which employees from all levels and areas involving. This Team is trained About what Innovation means, and what innovation Tools there is. Someone who can take on this task, the company with the help of external experts is advisable.
It is important to identify at the beginning of the “Pain Points” in the company. New, data-and AI-based approaches and technologies, such as BI, Analytics and Process Mining can be used for the existing needs, as well as problem areas and find out the urgency with facts to Deposit.
The areas in the company that need to be improved, once categorized, and prioritized, ideas can be developed in working groups. Per group, then the most important or with the greatest Potential equipped ideas are prioritized, selected, and developed further. Here, the use of Predictive Analytics Tools plays an important role in order to verify If-Then scenarios and innovations.
As with any development project, it is crucial to convince others. Therefore, it is a question of how the ideas and innovations can be appealing and convincing to be visualized, to calculate the essential Business Case properly, and, ultimately, the company’s present leadership to be successful.
Each working group should get the opportunity, Innovation, self-present. Of the best ideas will be selected together with the Top Management of two to five, and has developed new solutions, products or Services. The experience shows that this process achieved good results.
What is the role of Co-Innovation?
Co-Innovation is the creation of shared value of a company with its or its customers. It gives the customer the opportunity to develop a Service, a product or Know-how, which he buys from the beginning. This ensures that the Service or the product fit perfectly in the context of the customer. The risk that the Innovation fails, is minimized, and the costs can be better controlled.
Especially when it comes to very time-consuming or demanding Services or products, is the Co-Innovation is certainly a very good approach. Community cooperation reduces the investment risk of a single Company, there are at least two, or even several companies are financially involved. At the same time, you benefit from each other of your ideas.
Members of the management Board, managing Director and the management level in companies do well, the topic of Innovation with the company’s strategy to align, to establish the right processes for Innovation and create a culture that is open to Innovation and the associated risks.
Employees, who are born innovators, you should promote, and all the other you should teach, what Innovation means and how you can succeed. Finally, the best ideas come mostly from the private companies. A company has no resources for the topic of Innovation, is the pull of external consultants is certainly a good and supportive of the measure and the benefits of Co-Innovation, will allow you to exploit.
* Philipp Ringgenberg is a Senior Director of Business Consulting & Innovation Advising Europe, Orange Business Services.