Defining Innovation For Global Business

The term innovation has become somewhat of a buzzword in global business. It is used to describe new ways of thinking, technological advancements, and scientific discoveries. There are countless, varying, and often vague definitions for the word innovation on the web today. To discuss innovation effectively, a clear and useful definition is needed. So what is innovation?

Here's the ultimate definition of innovation: Executing an idea that addresses a specific challenge and achieves value for both the company and the customer.

So, finding new ways to improve a product, service, or process that addresses pain points for both the customer and the business is considered innovation.

We cannot talk about innovation and fail to mention digital innovation, the hallmark of the 21st century. From process automation to machine learning and digital transformation, digital innovation revolutionized and redefined modern business models and practices.

The Evolution of Innovation

Innovation is the mother of all the technological strides we have made from the middle ages to the 21st century. It has laid the foundation of the modern world we live in today. But even innovation itself is constantly evolving. More efficient and sustainable methods eventually replace even the most groundbreaking discoveries and inventions of their time. Think of the first gasoline-powered automobiles compared to electric and driverless cars on the road today. Innovations to safety features such as automatic braking systems, backup cameras, and collision warning systems helped lay the groundwork for driverless vehicles. 

However, 2020 ushered in a new era of innovation. A global pandemic and lockdown mandates lead to an unprecedented and impressive wave of innovation. Social distancing guidelines necessitated rapid operational innovations in virtually every industry.

Organizations and businesses were forced to develop new ways of operating under the constraints of lockdowns and social distancing. In a sense, the evolution of innovation can be equated to Darwin's theory of evolution.

It is not the strongest of businesses that survived, but rather, they were most adaptable to change. Consequently, companies that failed to adapt and innovate under lockdown measures either drastically downsized or shut down completely.

The evolution of innovation seeks to accelerate improvements to existing structures, systems, processes, and products. 

Digital Transformation

Digital transformation is a form of innovation that aims to digitize and automate business processes to increase efficiency and profitability. It also allows businesses to bring new services and products into the market and find better ways to engage users.

Digital transformation is the core of most, if not all, organizations. Here are a few benefits organizations stand to gain by implementing digital transformation.

Reduced Costs

Digital transformation eliminates manual procedures allowing your firm to operate more efficiently. For instance, less human power will be needed for automated processes translating to reduced employee expenses.

Competitive Advantage

Going digital helps businesses stay ahead of the curve of competitors who are yet to go down that road.

Generate More Revenue

By cutting your operational costs, going digital automatically positively impacts your bottom line. It allows you to venture into new markets and deliver new products, thus expanding your revenue.

Different Types of Innovation

There are different types of innovation and tactics you can apply to them. It is worth noting that the types of innovation may vary depending on the context.

Below are a few examples:

Disruptive Innovation

Essentially, disruptive innovation entails innovating your business model rather than your products, services, or process. It often happens when the competition basis shifts due to changes in the market or technological shifts, meaning you will likely be getting better at things that your users are losing interest in. Essentially, disruptive innovations change an existing market's logic.

Breakthrough Innovation

You may find your organization facing a problem that is well-defined yet quite impossible to solve. In that case, it would be best to employ unconventional skill domains. An open innovation strategy can be effective in such a case since it exposes the problem to a range of skill domains.

Basic Research

Remember that an innovation that will be path-breaking will not come to you when it is fully formed. A new event may lead you to discover it. Whether you are a startup or an established organization, you have access to world-class research. There are plenty of programs you can participate in that allow your organization to compete in some of the most competitive markets.

Sustaining Innovation

Usually, this is where most innovation happens since most people essentially seek to get better at something they are already doing. You will have a clear idea of the problems you need to solve, the specific markets whose capabilities you would like to improve, and the skill domains you require to solve the problem you may have.

Using conventional strategies like standard R&D labs and road mapping to solve such problems is usually adequate. It would also help if you designed thinking methods, especially if you perfectly understand the problem and the skill you require to solve it.

Growing Your Ability to Innovate from a Personal and Professional Perspective

Both personal and professional innovation requires you to have the right mindset. To innovate, you need to be creative and willing to take risks. Below are a couple of ways you can grow your ability to innovate.

Collect Ideas from Every Place

Innovating projects often require new ideas, whether it is to optimize strategies, change concepts, or overcome obstacles. You can collect plenty of inspiration and ideas from just about any place if you pay close attention.

Build an Innovation Team

Bring together individuals with different thinking styles and perspectives and create an innovating team. Innovation often requires diversification of ways of thinking and a range of competencies. Bringing together other individuals from different fields can result in a burst of creativity and innovation.

Collaborating with your colleagues can increase the pace in the organization, and it is also a chance to shift your perspective.

Do Not Settle for Good Enough

Whether you are innovating from a professional or personal perspective, do not settle for good enough or okay. Always strive to do better and raise the bar. That is how innovation happens. Challenge yourself and work with people who challenge you. Always look for better options and methods. It also helps to set goals that seem impossible and work towards surpassing them.

Be Willing to Change

If you want to improve your innovation ability, you have to be willing to embrace change. Change is not always easy, it requires discipline, takes energy, and you have to be willing to do something you have never done. It would help if you focused on doing what is suitable for the organization and not your boss. You have to be inspired to innovate, and this can only happen when you have a clear sense of meaning and purpose for your work.

Break the Rules

You can use plenty of conventional approaches, but this will not get you anywhere in innovation. You need to explore new paths and challenge the status quo.

All it takes to be well on the way to innovation is establishing an innovation culture. With the internet, there are endless opportunities. Visit the Think Global Forum to interact and network with experts from different industries and contribute or learn about ideas that can change both now and in the future.