In an era of rapid digital change, even established companies must constantly think about innovations and new ideas. Based on our experience, we highlight the five most important elements for corporate innovation.
Every company must continuously evolve. However, experience shows that companies become increasingly sluggish and less innovative as they grow larger. Therefore, the keyword "corporate innovation" has become an important point on the agenda of many management boards, even for larger companies.
To build a culture of corporate innovation, fast and efficient processes are needed, as well as senior management that supports the transformation itself and the conditions surrounding this transformation. Therefore, I have compiled important elements that are necessary to enable this innovative power for larger companies as well.
1. Create Space for Innovation Leaders
In the hectic corporate world, KPI-driven strategic meetings are just as much a part of the daily program as detailed roadmaps, monthly update meetings, and detailed plans for the next 1-3 years. However, these activities also hinder innovation, as one only deals with the "now" and innovation finds no place.
Identification and Freedom
It is crucial to identify the innovation leaders in a company and give them the freedom to work in their own way. This freedom allows them to develop new ideas and find new methods for implementing ideas that may not have even been considered before. Because no one knows today what innovations, ways of thinking, and new possibilities for products, services, or even new markets will exist in a year or longer.
Promoting Creativity
Another important aspect is the promotion of creativity. This can be done through special workshops, innovation labs, or by providing resources that enable innovation leaders to put their ideas into action. A creative environment is the key to developing groundbreaking innovations.
2. Reward Risks and Don't Punish Failures
True innovation always arises through "trial & error". Therefore, it is important to actively implement this basic idea in the innovation process and to view both small failures and big failures positively. Every experiment provides new insights and new information about future development and also helps to create a product that is better suited for the future market.
Establish a Culture of Error
Large companies tend not to tolerate mistakes. As mentioned before, experimenting with ideas is an important process that also involves mistakes. Therefore, it is really important to see mistakes as a valuable source of information and to maintain this basic idea when it comes to innovations. An open error culture, where mistakes are seen as learning opportunities, is essential for the innovation process.
Rewarding Risks
It is equally important to reward risks. This can be done through recognition, financial incentives, or the opportunity to participate in further innovative projects. A culture that rewards risks encourages employees to take new and unconventional paths.
3. Internal Support and Protection of Corporate Innovation
Innovation requires determined, fearless, and resilient talents who know how to set up new projects and break new ground. It is also important to give these special talents internal support from executive-level sponsors as well as by providing knowledge and resources so that they can really work innovatively.
Executive-Level Sponsors
The sponsors of these innovation projects are also asked to provide "protection". It is important that an "island of freedom" is created and it is also made clear that these projects are of great importance to the company. This also prevents conflicts around the programs.
Provision of Resources
The provision of resources is another important aspect. This can be done through financial means, access to technologies, or by providing expert knowledge. Only in this way can innovation leaders successfully implement their ideas.
4. Release Company Resources
Large companies have a big advantage in this regard. They have a large accumulated wealth of experience of employees, technologies, brands as well as relationships and sales markets that they can use. This intellectual property is a goldmine for corporate innovation programs that any start-up can only dream of.
Utilization of Experience
Unfortunately, these resources are usually only used by the respective managers and an island mentality develops, where everyone only wants to see their own advantage, whereby something new could possibly harm their own area of responsibility. Therefore, the support and distribution of resources from executive management is very important here as well. Innovation leaders must be able to access these resources and unnecessary bureaucracy avoided, then the necessary resources can also be used profitably for corporate innovation.
Avoiding Bureaucracy
Another important point is the avoidance of bureaucracy. Unnecessary bureaucratic hurdles can significantly slow down and hinder the innovation process. Therefore, it is important to establish lean and efficient processes that facilitate access to the necessary resources.
5. "Quickly to the Customers"
Every innovation stands or falls with the customers. Therefore, it is also important for new innovations to test these with customers and get good feedback for further development.
Obtaining Customer Feedback
Unfortunately, it also plays a role here that salespeople prefer to meet KPIs rather than market new products and thus block their customers. This is where executive management is again required to set necessary incentives and also to emphasize the importance of the project for the organization. This could be with setting new KPIs or also with personal incentives for the salespeople.
Adaptation to Customer Needs
Another important aspect is adapting to customer needs. Through regular feedback and involving customers in the innovation process, it can be ensured that the developed products and services meet market requirements.
Conclusion
Corporate innovation is and remains a great challenge for many companies and it really usually requires a major rethinking on the part of management and employees. Especially executive management is required here to create the right environments, talents, and incentives to promote an active innovation culture.
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