Extract
Business innovation management is not just about generating new ideas, but about implementing these ideas effectively to create value. This requires creating an environment conducive to innovation, supported by strong leadership, effective knowledge management and a customer-centric approach.
Contents
What is Business Innovation?
Creativity and innovation are essential qualities for the survival and growth of any business. To the implement changes and improvements In their business models, organizational structures and processes with which they operate, companies transform the products and services they offer to create additional value and remain competitive in a market that demands:
Use of technology to improve efficiency and productivity.
Differentiation from your competitors and a unique offering.
Adaptability in the face of new trends and changes.
Types of Business Innovation
Business innovation can manifest itself in various ways and in different areas within an organization, some ways to see it are:
Business Model Innovation by redefining the way a company creates, delivers and/or captures value.
Organizational Innovation by transforming the organizational structure, changing the organizational culture or improving business management methods.
Process Innovation by implementing more efficient and effective methods of production and/or delivery.
Product or Service Innovation by developing new offerings or improving existing ones to better meet customer needs.
Challenges in Innovation Management
Managing business innovation projects often face a high degree of uncertainty and risk, which requires specialized approaches and tools to address a number of challenges in various areas that can hinder progress if not managed properly.
Cultural Challenges
Related to the ways in which people operate. These can be addressed through open communication and a participatory approach that includes appropriate training and incentives.
Resistance to change due to comfort with the status quo or fear of the unknown.
Stagnant Organizational Cultures that do not value or encourage creativity and innovation.
Rigid Organizational Structures that make it difficult to make quick decisions and implement new ideas.
Business Challenges
Related to the ways in which the company interacts with its environment. These can be addressed with clear differentiation, creating partnerships and mechanisms to stay on top of trends and changing customer needs.
Unfair Competition that hinders the introduction and success of innovations in the market.
Changes in Expectations and Preferences of the target market.
Legal Challenges
Related to compliance with regulatory bodies. These can be addressed through good advice and constant vigilance in the face of changes in regulation and government.
Variations in Regulation between different regions and sectors that complicate the development and implementation of innovations.
Intellectual property which can be complicated and expensive.
Financial Challenges
Related to obtaining resources for research and development (R&D). They can be addressed by seeking risk capital and sound resource management.
Lack of Financing for innovation projects, especially in the early stages.
Cost Management with high levels of uncertainty.
Technical Challenges
Related to methods for developing and implementing new innovations. They can be addressed through feasibility studies that allow planning and seeking options to achieve the desired transformation.
Lack of Specialized Talent that can carry out the projects.
Total Integration which can be complicated and expensive.
The different combinations of these aspects often make it difficult to obtain the expected value and can lead to waste and losses, variations between similar projects and stoppages that hinder efficient workflow, leading to late deliveries, cost overruns, “gray zones” and “ “hidden vices” that obstruct the growth of organizations.
To address this situation, new ways of thinking and acting must be implemented.
Best Practices in Innovation Management
Effective management of innovation projects requires an integrated approach that addresses cultural, strategic, operational and technical aspects.
Clear, Well-Defined Planning, Achievable and Understood by All with the Definition of a Clear Route
The main objective of planning is fostering synergy between processes, responding: What comes next? … To formulate the answer, each project requires an analysis based on its specific needs and the capabilities of the companies and people involved in its execution, considering variables such as the necessary progress, the expected cost and the economic flow available to execute it.
This will determine the “rhythm” of the project, which must be as accurate and balanced as possible, seeking not to fall into extremes and to be able to adequately satisfy the needs of the project:
Excessive saving can lead to waiting times and mental overload, resulting in fatigue, equipment wear and tear, and safety risks that can end in incidents and accidents that leave tasks unfinished.
Disproportionate increase produces productivity spikes that must be properly managed to avoid incurring cost overruns and loss of administrative control at the workplace.
If the parts of the project move at different speeds, blockages, delays, stoppages and bottlenecks are generated that must be resolved to achieve the start, continuity and/or closure of the activities, ultimately seeking to prevent work from waiting for workers and workers from waiting for work. Open and transparent communication between all stakeholders is key to ensuring that everyone is aligned and committed to the project objectives and an efficient and effective teamwork.
Leadership that Integrates the Parties Towards the Achievement of Results with the Alignment of the Short, Medium and Long Term
Effective leadership is essential to integrate all parties involved in the project and ensure they work towards a common goal. It is crucial to establish an effective order of command and maintain strict congruence in the order of command to direct efforts towards achieving short, medium and long-term results of the project.
Leaders must apply different leadership styles according to the needs of employees, from directing and closely supervising to delegating responsibilities when you have the necessary maturity. Leaders must inspire trust, foster collaboration, and proactively resolve conflict to maintain team momentum and motivation throughout the project.
Sufficient Financial, Human, Material and Technical Resources to Develop and Implement Innovation
Obtaining and managing adequate resources is essential to the success of the project. From sufficient financing to the recruitment and retention of trained personnel, through the efficient management of materials and the adoption of appropriate technologies, each aspect is crucial for the development and control of the innovation process.
Obtaining financial resources Through financing and capitalization sources and mechanisms, they are key to maintaining liquidity and guaranteeing the cash flow required to support the innovation process.
The recruitment, selection and retention of human resources It is key to achieving the project objectives that require trained, capable and willing personnel.
The care and use of material resources, especially the logistics of materials and machinery logistics.
The adoption and application of technical resources according to the level of technical maturity of those involved. A company that has operated in Excel all its life will encounter difficulties when joining projects with increasingly higher technical requirements.
It is important to develop a detailed execution plan and closely monitor resource use to avoid budget deviations or material shortages that could affect project progress.
Coordination of Teams for a Release of Restrictions that allows Things to Happen
Coordination between teams seeks to ensure smooth flow of project execution of innovation. This involves constant communication between all teams involved, quick resolution of issues, and removal of constraints that may hinder project progress.
To achieve this, use is made of three key elements which seek to facilitate the visualization of the status of the projects, as well as the identification and analysis of deviations that may occur during execution:
Visual Management with the use of Kanban Boards that will allow us to transmit information in a clear, orderly and updated manner.
Establishing effective Events with meetings of standard duration with clear and disseminated objectives that are carried out periodically and are transcendent.
A Management by Results where indicators are measured that help us identify areas of opportunity to anticipate and/or correct course.
In turn, risk management and security due to the various processes involved in the transformation process are essential to ensure the continuity of the processes that lead to good results.
Conclusion: Leadership and Coordination Excellence
By adopting best practices, maintaining high quality standards and efficiently managing all aspects of creativity and innovation, it is possible to achieve success in an increasingly competitive market. With a clear vision, meticulous planning and a commitment to excellence, business leaders can develop and implement innovation projects that are not only financially successful, but also impactful and lasting over time.
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About Pablo Tellaeche (Author):
Owner and main consultant of TACs Consultores, Speaker and University Professor; seeks to bring a true and positive Lean Culture and Digital Transformation to every company with which he has the pleasure of collaborating.
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