In an era of rapid digital change, even established companies must constantly innovate and generate new ideas. Based on our experience, here are the five most important elements for fostering corporate innovation.
Every company must continuously evolve. However, as companies grow larger, they often become less innovative. For this reason, corporate innovation has become a critical topic on the agendas of many management boards, especially for larger organizations.
Building a culture of corporate innovation requires fast, efficient processes and senior management that supports the transformation and its surrounding conditions. Here are five key elements to unlock innovative potential in larger companies.
1. Create Space for Innovation Leaders
Identification and Freedom
In the fast-paced corporate environment, KPI-driven meetings and detailed roadmaps often dominate daily operations, leaving little room for innovation. It is crucial to identify innovation leaders within the company and grant them the freedom to work in their own way. This autonomy enables them to develop groundbreaking ideas and explore new approaches for future markets.
Promoting Creativity
A creative environment is vital for fostering innovation. This can be achieved through workshops, innovation labs, or dedicated resources that empower innovation leaders to bring their ideas to life.
2. Reward Risks and Don’t Punish Failures
Establish a Culture of Error
True innovation is born from "trial and error." Companies must embrace this mindset, viewing mistakes as valuable learning opportunities rather than setbacks. An open error culture is essential for fostering corporate innovation.
Rewarding Risks
Encouraging risk-taking can be achieved through recognition, financial incentives, or the chance to lead future innovative projects. A culture that rewards risks motivates employees to explore unconventional paths.
3. Internal Support and Protection of Corporate Innovation
Executive-Level Sponsors
Innovation leaders need internal support from executive sponsors who protect and champion their projects. Creating an "island of freedom" for innovation ensures these initiatives are recognized as critical to the company's success.
Provision of Resources
Providing financial, technological, and expert resources is key to enabling innovation leaders to implement their ideas effectively.
4. Release Company Resources
Utilization of Experience
Large companies have the advantage of vast resources, including experienced employees, technologies, brands, and networks. However, these resources are often siloed, hindering innovation. Executive management must facilitate access to these assets, allowing innovation leaders to utilize them efficiently.
Avoiding Bureaucracy
Unnecessary bureaucracy can slow innovation processes. Streamlined and efficient procedures are essential for unlocking the full potential of corporate resources.
5. “Quickly to the Customers”
Obtaining Customer Feedback
No innovation succeeds without customer input. Testing innovations with customers and incorporating their feedback is vital for refinement and market success.
Adaptation to Customer Needs
By involving customers in the innovation process and regularly seeking feedback, companies can ensure their products and services meet market demands.
Conclusion: Corporate Innovation as a Strategic Imperative
Corporate innovation remains a significant challenge for many organizations. It often requires a fundamental shift in mindset among both management and employees. Executive management plays a pivotal role in creating environments, identifying talents, and establishing incentives to cultivate an active culture of innovation.
Learn how Wayra can help you accelerate your corporate innovation journey! Contact us today for expert guidance and support. Discover our services for startups and corporate partnerships with Telefónica.
