What is innovation management?
Innovation management is the process of managing new ideas – collecting, developing, and bringing them into a reality.
Ideas are put into practice through innovation processes such as design thinking. It represents a problem-solving approach with the five stages to reach the company’s innovation objectives.
- Empathize: deep-dive into the research to know what your users need.
- Define: determine your users’ pain points
- Ideate: generate ideas.
- Prototype: create the prototype based on the knowledge from the previous steps.
- Test: time to test the solution
The process often emphasizes the end-user in the center and can involve the participation of the internal ecosystem and stakeholders.
According to Accenture, sixty-five percent of high-growth companies plan to collaborate with customers during innovation, compared to 54% of other companies.
Innovation management can also refer to internal processes such as improving organizational structure and operations and developing new markets and products. At the same time, it could refer to improving existing products, processes, customer experience, and even business reinvention as part of the innovation management process. It’s a powerful practice for companies to evolve and keep relevant in the market.
In theory, it sounds straightforward – innovation management deals with all measures to promote innovation in organizations: new ideas, new business, new ways of working, new models, products, and services.
But what does it take to innovate? Is it that straightforward?
Innovation requires all these pillars to implement the most viable ideas in practice:
- Strategy – a clear vision and plan to achieve the company’s defined goals
- Process – a way for a strategy implementation – who, what, when, why
- Structure – the proper organizational structure in the company allows innovation more effectively
- Culture -company mindset, bring the best of each person into the company
Why is innovation management important?
Enterprises compete in a highly saturated market where new becomes obsolete quickly and unpredictably. Therefore, innovation is no longer an option. It is needed for three main reasons.
- Keep the company relevant in the market
- Evolve and grow
- Differentiate it from the competition
Also, the pandemic showed us that experimentation and developing real-time decision-making in a changing environment has become a skill many industries are looking for.
Competing in a massive market is not easy and can often be due to a lack of a clear innovation strategy. How are the companies keeping up?
How to manage innovation in an organization?
Innovation is everyone’s business in the company – starting from C-level management to the most recently joined employees. The key to an innovative organization is to offer everyone the tools and motivation to create ideas and use tech’s power.
This helps manage innovation faster and better, and keeps it consistent. Innovation can come in many ways: crowdsourcing, virtual reality, augmented reality, artificial intelligence, etc. A great example is Facebook with its meta.
Where to source innovation?
Innovation happens, first and foremost – internally.
They mobilize their teams together to accelerate business growth. For example, PepsiCo generated over 1000 ideas for its Next Big Idea 2021, using an open innovation platform.
Innovation is sourced from external sources as well. In 2021 Schneider launched the Go Green challenge on the Agorize platform and registered the highest number of students – 25,458 students who submitted 2,744 eligible ideas
A global life sciences company – Bayer – was empowered by the 1,171 participants from 82 countries with ideas in data farming, life science, cyber security, and digital therapeutics. Medtronic accelerated innovative MedTech and digital health solutions leveraging crowdsourcing to target the best Medtech providers. Within just six weeks, Medtronic received 323 submissions.
Innovation management made easy
Learn more about Agorize solutions for innovation management.