Institutionalizing Innovation – A Paradox?

Institutionalizing Innovation – A Paradox?

Innovation involves “Out-of-Box” thinking and institutionalizing innovation is a contradiction of sorts. How does one organize creativity in “process-perfect” (read Quality certified) organizations, inevitable conflict-ridden workplaces and a dynamically changing chaotic market-place?

A widely-held belief is that Creativity is forte of lonely geniuses and that it is “in-born”. Peter Drucker is one of the pioneers who said that innovation could presented as a discipline, capable of being learned and capable of being practiced. He states in his book “Innovation and Entrepreneurship”:

Systematic innovation consists in the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation.

The challenge in organizations is to foster un-hindered creativity across all levels of organization and yet have a structure in place to channel the ideas systematically into usefulness.

Innovation is the introduction of new ideas which are useful. In the marketplace, innovation is the successful exploitation of new ideas and, hence, successful commercialization is the ultimate goal. Innovation always brings a significant difference to the situation at hand and creating or adding “value” is an essential element.

Organizational innovation initiatives are usually aimed at improving efficiency, effectiveness or competitive advantage. Thus, the application of new ideas could (a) result in an improvement in an existing product, service or process and/or (b) result in an entirely new product, service or process.

The bigger challenge is to be ready for the next "unknown" external threat to business. It is not enough for organizations attempt to anticipate the next “Disruptive Innovation” in the market (and grope in the dark, waiting to get hit). Organizations should themselves take initiative to unleash the next series of “Disruptive Technologies” into the market.

Finally, in the commercialization stage, the trap to avoid is the “Early Mover” principle. A highly successful Innovation may not equate to Commercial Success when the “Imitators” rush in at “The Right Moment” in the market with “deep pocket” marketing and distribution.