Innovation: the adoption of a novel technology or way of working that has led to the significant improvement of an organization, product, or service
Innovation only takes place if an idea has been implemented and it has impacted the organization
Innovation can be used to determine the strategic position
Innovation does not just make new capabilities and efficiencies available to organizations, it changes the fundamental nature an organization’s external and internal environments
Other innovation will improve the efficiency or effectiveness of existing activities (outperforms competitors offering similar products or services)
Successful digital organizations must, at the very least, be able to track, adopt and adapt these innovations to be able to maintain their position
To grow their competitive advantage, they must become innovative themselves
1. Innovation as a strategic capability
Manage innovation to enable the organization to succeed in a volatile environment
Innovation is used to:
Digital leadership uses innovation deliberately: chose what will best meet the needs of the organization to achieve desired outcomes (success). Not all innovations are necessary, needed, valuable, etc.
2. Innovation as a strategic capability
Innovation is only valuable if it solves a customer problem
Innovation comes from organization’s R&D or innovation team – not exclusively true. Most innovation comes from entrepreneurs as their focus is on what’s important and not just interesting (solve customer problems, address customer needs)
Where do the best ideas come from ?
3. Balanced approach to innovation
Innovation has rewards but comes with risks and it can be disruptive. Uncontrolled innovation is wasteful and potentially chaotic
To manage innovation, must manage uncertainty. Don’t know costs, returns, if it will work, if it will be accepted
Must develop an innovation posture (similar to a risk posture). How an organization will respond to:
4. Innovation management
Innovation is characterized by uncertainty, risk, and complexity: manage with formal flexibility (have a structure and methodology but allow for exceptions)
Organizing innovation management:
Managing innovation activities:
5. Steps in managing innovation
Generate and capture ideas: brainstorm, design thinking, innovation fairs, hackathons…
Filter ideas: will it ‘help’ the customer; is it needed ?
Incubate ideas: moves an idea from a concept to reality
Evaluate ideas: use established criteria (costs, return, business need…) to accept or reject the idea (executives should set the criteria as well as evaluate)
Select ideas: base selection evaluation ranking and potential to address challenge
Identify/charter a team to build/test: consider proposer, tech experts, architects, project management, organizational component experts
Develop prototypes: several rounds of development begins with a prototype (viability, reasonable…)
Design, develop, test: work from an accepted prototype following CDS concepts (value stream)
6. Technology adoption lifecycle
7. Evaluate and adopt emerging technology Ask:
Stages of technology adoption:
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8. Emerging technology in context
9. Building an innovation-supporting culture
It is a process, consider the following:
10. Approaches to innovation
Managed chaos and distributed experimentation:
Difficult to adopt as most well-established organizations are command-control systems, with a top-down hierarchy:
Executive is the visionary, parameter-setter, enabler (mid-level leaders are coaches)
Transition to managed chaos by:
Crowdsourcing:
To pursue crowdsourcing:
Go back to ITIL 4 Strategic Leader Certification Course: Risk and Opportunities to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.
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