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Innovation is hard, it doesn’t happen by following a tried and true cookie cutter approach. It often begins when someone begins to think and act differently, usually in isolation, from the rest of an organization; challenging convention.
The biggest illusion in digital transformation is that it will make you more innovative. Unh-uh. Going digital mainly lets you do the same things, faster. It reduces friction for users, be they customers or employees. It helps you suck less, and maybe even achieve occasional delight. But by definition, digital transformation replaces current analog processes with digital ones. Whereas innovation is about identifying unmet needs and new opportunities, and solving for them in novel ways that deliver new value and achieve adoption.
In evaluating ideas for development, companies often rely on the expertise of the person presenting the idea. This is not a bad thing, per se: Ideators are often the most relevant experts, they know “what the idea is all about” and “how it really works.” The trouble is, expert employees may well oversell or undersell their ideas, leading the company to pass up on good ideas while investing in bad ones.
While many companies today are attempting to leverage AI to provide similar service more cheaply, the really smart players are exploring how AI can empower employees to provide a much better service or even to imagine something that never existed before. “AI will make it possible to put powerful intelligence tools in the hands of consumers, so that businesses can become collaborators and trusted advisors, rather than mere service providers,” Sutton says.
The story of Fleming’s Eureka! moment is romantic and inspiring, but also incredibly misleading. It wasn’t one person and one moment that changed the world, but the work of many over decades that made an impact. As I explain in my book, Cascades, it is small groups, loosely connected, but united by a shared purpose that drive transformational change.
Most good ideas emerge from business interactions, not single individuals. Therefore, 3 ”C” (Communication, Collaboration, and Consistency) elements are necessities for keeping ideas flow and practicing effective idea management to achieve their business value continually.
If you are looking for a larger selection of ideas to choose from, put up a big prize. If you don’t mind a smaller selection of original ideas or don’t have the resources to vet a lot of ideas, offering no prize will work just as well. Low rewards don’t seem to serve any purpose, offering the worst of both worlds: discouraging submissions and lowering the level of originality of those submitted.
Now, more than ever, the corporate innovation industry grows as quickly as the technology that drives it. Thus, corporate innovators must set up the right foundational framework to kickstart their efforts. This Ultimate Corporate Innovation Playbook provides that framework by examining:
- Three outdated beliefs corporations must let go of
- Three new beliefs corporations must embrace
- The Ultimate Corporate Innovation Process
New innovations, like machine learning (ML), artificial intelligence (AI) and the Internet of Things (IoT) are emerging to once again set executives abuzz with visions of competitive excellence. Savvy business leaders can use these new innovations to their competitive advantage if they stay on the cutting edge of what big data can do. Want to innovate with big data and join these forward-thinking trailblazers? Here are the 4 essentials you’ll need to succeed.
Anticipatory Leaders™ understand that we are at a unique point in human history, filled with waves of disruption and opportunity. We are doing things today that were impossible just a few years ago. That means the old rule, The Big Eat the Small, is being replaced by a new rule, The Fast Eat the Slow. They know this new reality is driven by the exponentially increasing rate of technology-driven change. Many wonder why so many established organizations of all sizes are moving so slow. The answer is simple: they think they are moving fast. But in this new era, they’re actually moving slower than they realize.
It’s impossible to escape the amazing tales of people starting with an idea in a garage (think Apple) and growing it into a billion-dollar global business. But a startup isn’t as easy as those well-known stories might have you think. There’s a little bit of luck and a whole lot of other influences at play.
It’s a fast-paced business world out there where innovation is the name of the game and a powerful tactic that ensures long-term success. After all, if your company is not innovating and reinventing its processes across the board, then you’re falling behind.
Big data will help ensure the future of self-driving cars, while the continued development of the IoT will form a necessary part of creating a world fit for autonomous transportation. Do not believe what you hear about AI or the importance of "smart cars" – the real future of self-driving cars is big data, which stands to totally upend our modern understandings of transportation.
Over his career, Joe Byrum says he’s worked with thousands of crowdsourcing projects, and he strongly believes that they generally yield more innovative solutions than working with internal domain experts. He primarily uses Innocentive and IdeaConnection. Both platforms are for general research and innovation problems, and Byrum particularly likes the team-based and certified solver capabilities of IdeaConnection.
There is a common misconception that innovation and marketing are two separate concepts when it comes to business. However, if you analyze it, you will see how successful game-changing technologies have used marketing to promote their product and create customer trust. Innovation is the initial idea—it’s the backbone of your entire business culture. Marketing, on the other hand, helps your business take off. Great examples include Google’s AdSense and Nike’s Nike+. Both pushed the boundaries of their industry and both were able to sell to a wide consumer base.
We’ve all seen companies suddenly and mysteriously change. Innovative teams, widely praised for their breakthrough products and vision, begin rejecting the most radical ideas. The people are the same; the culture is the same—yet people suddenly stop taking chances. Culture still matters, of course, but it’s time to pay a little more attention to structure.
Try this brainstorm method; the Contradictory Innovation – also known as the Waterproof Teabag method. Take your leading product or service and everyone has to describe a version which completely undermines or contradicts one of the main properties of the item. The more ridiculous the better. Then you take each useless idea and see if it leads anywhere useful. Like a silent disco.
Innovation spending has declined because many companies, under pressure to show that they can disrupt a market (or to stave off disruption), are pursuing innovation haphazardly. Much of the investment ends up being non-strategic, poorly linked to the business, and under-managed. Some have even argued that innovation spending and activities are often exercises in corporate image-building rather than attempts to increase productivity or performance. No wonder companies are disappointed by their results. However, 31 companies have increased their spending on innovation by more than 50% and are "very satisfied" with the results. What did they do differently?
The major tech companies who open their doors to a new way of thinking and a monogamous partner approach are reaping the benefits of ‘inspired innovation’ and ultimately getting ahead in the AI arms race. As the saying goes, ‘if you can’t beat them, join them.’ This could certainly be true for the tech sector, a trend we will likely see continue over the course of 2019.
The truth is that the challenges we face as a society today, climate change and food security being two of the most prominent, are far more complex than anything we’ve tackled before. Even a company like IBM, with its century of history and multi-billion dollar research budgets, can’t go it alone. In the new era of innovation, collaboration is increasingly becoming a competitive advantage.
A group of computer scientists once backed by Elon Musk has caused some alarm by developing an advanced artificial intelligence (AI) they say is too dangerous to release to the public. OpenAI, a research non-profit based in San Francisco, says its "chameleon-like" language prediction system, called GPT–2, will only ever see a limited release in a scaled-down version, due to "concerns about malicious applications of the technology".
Corporations in every field must constantly monitor technological advancements which affect their business. If a manager thinks his R&D department can keep up with the constant changes in technology taking place around him and remain relevant, he’s mistaken. Innovation won’t come from within. It will come from without.
This article is about How automation continues to be a game-changer. At present, many of the industries are mainly depending on automation. Repeated actions can be replaced with automation. This article helps the readers to understand in which way the automation is useful for the human.
To create an innovative organization, you have to cultivate curiosity and learning across all levels of your organization. If every employee keeps their eyes open and wants to constantly learn and get better at what they do and help the organization achieve the same, you’ll be well on your way to making more innovation happen.
The Three Horizons allowed senior management to visualize what an ambidextrous organization would look like — the idea that companies and government agencies need to execute existing business models while simultaneously creating new capabilities — and helped to prioritize innovation products and programs. However, in the 21st century the Three Horizons model has a fatal flaw that risks making companies lag behind competitors — or even putting them out of business.
Why can innovators find more view spots than others? Why can innovators think different and connect unusual dots effortlessly? Innovators see possibility in the world when most people only see the way that they have been told. Innovators are the rare breed, but innovators are also among us and within us. Here are five perspectives of being innovative.
How does disruptive innovation emerge, develop, grow and disrupt over time? This “process” of business disruption sounds straight forward and easy to comprehend. But the reality for companies is more complex than it sounds and they are struggling with managing a disruptive innovation, both from an entrant’s and an incumbent’s perspective.
Go to just about any business conference and you will see a pundit on stage. He or she will show some company that failed and explain the silly mistakes that they made, then follow-up with a few basic rules to help you avoid those pitfalls and become super successful. You leave feeling confident, because it all seems so simple and easy.
Today, everyone knows that internal innovation will happen only after successfully implementing an open innovation process with startups. This process must have great value, so that implementing open innovation will be effective and have minimal errors.
If you’re investing in understanding how the world around you is changing, you also need to invest in the relationships and systems that will let you take quick action on what you find.
Here is what we are learning. Corporations that have consumer-driven innovation programs outperform their competition that relies on an outdated model of RND to generate new value. Companies focused myopically on short-term value and a single profit motive only do less well than companies who embrace the emerging paradigm of Conscious Capitalism.
Adopting leadership mindset means you compete against yourself, not against others. You choose to create and deliver better options and not just doing what everyone else does. When you compete against yourself you set your own pace, your own expectations.
AI though controlled by humans will control the future of drones. AI allows machines like Drones to operate on their own and make decisions. But, a machine that can make decisions and learn to work independently could cause more than reasonable and befall society.
Nearly every company’s strategy these days is to grow through innovation, yet many fall short. We all know the standard reasons: innovation is hard, innovation is uncertain or innovation grinds against the gears of the operating organization. I’ve come across surprising and actionable reasons why companies don’t have enough innovation. Here are my top four.
There are some common principles in how innovators approach their work and these are things that anyone can apply. That doesn’t mean everyone can be world famous, but the evidence clearly shows that anyone can be creative and, even if it’s not a major breakthrough, make some contribution to the world.
The question is not whether A.I. will take over our jobs, it will, it’s how soon and how. One thing is for sure: it will happen in phases; first it will create new ones where it will augment our abilities not replace them. Organizations have loads of data about their customers, but that data needs to be cleaned and labeled before it’s fed into an algorithm that will make sense of it all.
People often convince themselves that highly successful individuals who possess a special gift set themselves apart from everyone else. However, the reality is that your ability to have success, however you define it, can be accomplished with a few simple steps.
Forget testing. Forget marketability. Forget strategy. I hear fear, followed by more fear. How can I protect my invention? Will a patent stop my idea from being stolen? Instead of getting emotional, focus on outthinking the competition. If someone wanted to work around you, how would they? In other words, try stealing your invention from yourself.
Should senior management even be involved in innovation work? Well, the short answer is: yes. Based on the research done by McKinsey, 80% of executives consider their current business models to be at risk. As such, the evidence would squarely indicate that for most organizations, change is inevitable and to remain competitive in these turbulent times, innovation is a key capability.
As our technology becomes almost unimaginably powerful, there is growing apprehension and fear that we will be unable to control what we create. The emergence of significant new technologies unleash forces we can’t hope to understand at the outset and struggle to deal with long after. Yet the most significant issues are most likely to be social in nature and those are the ones we desperately need to focus on.
Whenever I get asked by executives about how their companies can innovate they expect me to respond with a prescriptive 3 to 5 point checklist of things that will solve all of their problems. Instead, I respond with a question: what are you doing to impede it?
Measuring innovation is one of the most ambiguous tasks when engaging in innovation management. Because of the complex nature of innovation, finding the right metrics is far from being simple. What makes measuring innovation tricky is that seeing the real impacts of your innovation efforts takes time, and because each business and team is different, not all innovation metrics can be applied to everyone.
In linguistics, there is the concept of deep structure and surface structure. By digging into these, we can gain some insights into the way innovation really works.
Innovation is the mother of necessity, but imagination also drives innovation. There isn’t one single way to get ideas, the most common way is seek out needs and create something that will satisfy those needs. The other way, less talked about, is to scratch your own itch.
The internet was revolutionary in that it democratized the spread of information and ideas at a much faster rate than any other channel. With the increased adoption of computing, we’ve also tracked the rise of “distributed knowledge” databases like Quora or Wikipedia. What is interesting is how powerful these specialized knowledge bases can prove to be in the context of innovation.
An all-star team is making headway with a new initiative that could alter the future of the organization. Then, the results begin taking longer than anticipated to prove, and after too much time spent outside of their comfort zones, the team of high-achieving employees can’t seem to execute within the uncertain environment. How could such a capable team fail?
Every corporate is under attack of dozens, if not hundreds of startups. They are all craving for a piece of the cake. Startups are disrupting corporates, and a lot of corporates are struggling to deal with disruption. It doesn’t have to be this way. If you think about it, corporates have everything it takes to become the disruptor themselves, instead of being disrupted.
When you think of breakthrough innovation, someone like Steve Jobs, Jeff Bezos or Elon Musk often comes to mind. Charismatic and often temperamental, people like these seem to have a knack for creating the next big thing and build great businesses on top of them. Yet what often goes unnoticed is that great entrepreneurs build their empires on the discoveries of others.
Digital advances in the past two decades have enabled more people than ever before to express creative intelligence. Yet apart from the transformation of services powered by mobile apps and the internet, few sectors have seen spectacular surges of innovation—and only 43% of companies have what experts consider a well-defined process for it. In this article the authors present a five-part framework to guide the development and ensure the survival of breakthrough ideas.
Unfortunately, finding the capital to fund your business isn’t the easiest thing in the world. While there are business loans and investors who might be interested in backing your business, the fact is these sources of money are finite. Even if your business is at a point where it makes enough revenue to support itself, even a slight misstep can lead to financial disaster. However, taking an innovative approach can often prevent or reverse a business’s financial woes.
Every organization strives to innovate, but few succeed consistently over time. That’s why so many once dominant companies hit a peak and then decline. Yet IBM, Google and Amazon have been able to buck this trend. While most companies are lucky to come up with one major innovation, these three seem to be accelerating their ability to create impressive new products and services.
Established organizations are highly specialized, they hire optimizers. But hiring for innovation is different, you’re looking for people who are highly curious; explorers. This is culture shock for an established organization because they’re used to optimizing what already works, and a good way to judge that is by looking at someone’s title. None of this reflects ability, because innovation is all about surprises and navigating them.
An important, but often overlooked, aspect of managing innovation efforts is how success and failure are defined and how they are recognized and rewarded. Successful innovation requires dedicated employees willing to take risks, approach challenges differently and from new perspectives, and experiment.
Savvy executives who want their organization to succeed should establish innovation as the core of their daily operations. Ultimately, innovation is about people. Companies that encourage growth and leadership can create a satisfying work environment. Leaders can’t force staff members to innovate. However, in the right environment staff members intuitively act as entrepreneurs and innovation flourishes.
Innovators are looking for a challenge, not a job. Getting the most out of themselves is what drives them. They’re naturally attracted by any challenge that doesn’t have a clear path forward. So rather than evaluate them on predictable results, evaluate them for predictable attitude and flexible approach to overcoming challenges.
With all of the hype around artificial intelligence (AI) and machine learning (ML), businesses are feeling a lot of pressure to embrace and enthuse these technologies. That’s all well and good, business advisors say, but it puts the cart ahead of the horse. Compounding the hype problem, management of data analytics has escaped from the IT department and is roaming the halls, sweeping up enthusiasts from departments who don’t necessarily understand the thoughtful, reasoned approach that will make the effort a success.
Innovation is about the future, without it, you lose sight of tomorrow. Innovation is an exceptional, exclusive, and realistic idea that separates you from others without a second thought. Innovation can happen anywhere in the organization and its ecosystem. Digital innovation has a broader spectrum, hybrid nature, and deep context. You have to systematically develop the business competency to execute it successfully, and that is something you do not accomplish overnight.
My studies of truly innovative organizations have revealed five common elements (regardless of industry) that define cultures that excel at innovation. They are Empowerment, Honesty, Community, Goals, and Leadership. With the five elements in place, your people will start to generate the innovative growth that you desire, and you’ll be able to solve many more of your customer’s fundamental issues.
Often when powerful technologies are not properly understood, there is a desire to pass new laws or take some action to protect the public interest. That isn’t necessarily a good thing. Ronald Reagan famously quipped, “The nine most terrifying words in the English language are ‘I’m from the government, and I’m here to help.’”
Before you embark on a game changing initiative, your organization needs to be prepared for it. In a recent article for Harvard Business Review, columnist Scott Kirsner pointed to a survey of 270 corporate leaders that found that the most significant obstacles to innovation are not things like budget, skill sets or CEO support, but politics and culture. Those are pervasive issues and can’t be solved overnight, but they can be overcome.
What happens if more advanced devices achieve a measure of creativity? Creativity isn’t something derived from a mathematical equation. The simplest thing for a child, picking a random number, is something a computer can only fake. A machine capable of coming up not just with unpredictable numbers but also with spontaneous ideas would change everything.
What makes a ‘great’ workplace? Is it possible to transform where you work into where you want to work? Making the grade as a ‘Great Place to Work’ means that your employees believe in the management; they feel respected and fairly treated, ie, they feel a high level of trust. It may sound simple, but building trust at work, especially in a diverse workplace, is complex.
Advanced artificial intelligence algorithms have the ability to take over tasks traditionally reserved for skilled human operators, such as driving a truck or performing a medical diagnosis. What once was the stuff of science fiction is now reality. This technology has made tremendous leaps in the last decade, yet it remains nowhere near its full potential.
Innovation must become your business routine and corporate culture to renew creative energy. Digital innovation has a broader spectrum and the hybrid nature. It comes in the variety of flavors and there are many opportunities in an enterprise to taste it. The companies who get the most from innovation effort have the right ambition, open leadership, and culture quintessential.
How can companies generate more business impact from non-incremental innovation? Typically, companies have little problems in generating ideas for adjacent, radical or even disruptive innovation and in validating the most promising ideas. On the other end of the process, companies have systems to grow material businesses and incrementally improve their performance over time. But for many companies, the transitional Scaling-Up phase in-between is a ‘Valley-Of-Death‘, in which many promising concepts die on their journey from idea to business impact.
The challenges we face today will be fundamentally different because they won’t be solved by humans alone, but through complex human-machine interactions. That will require a new division of labor in which the highest level skills won’t be things like the ability to retain information or manipulate numbers, but to connect and collaborate with other humans.
The future belongs to those who learn more skills and combine them in creative ways. The main challenge is you’ve been trained and are experienced in something that is no longer valuable. Which means you have to develop new skills. The other is most people use technology in their day-to-day lives, but are not trained in using it to create better outcomes for others; they’re consumers not creators. This circumstance is the result of both the education system and yourself.
Contrary to the plot of so many sci-fi blockbusters, a self-aware, evil A.I. purposely aiming at pedestrians is just as unlikely as one launching nuclear missiles. Far more mundane errors are likely to trouble advanced A.I. programs, because no matter how perfect and benign the underlying algorithms, and how flawless the computing hardware might be, things can still go very wrong.
Like any tool, AI can be dangerous when misused. It’s the unknown that’s scariest of all, and fear is the biggest threat to technological advances. Expanding knowledge – eliminating the unknown – is the best way to alleviate anxiety and reduce the natural impulse of politicians to ban what they don’t understand. If we wait until the point where we need to plead the case for AI and O.R. to lawmakers, the battle will already have been lost.
The real innovation challenge lies beyond the idea. It lies in a long, hard journey – from imagination to impact. Even the best-managed corporations in the world struggle to execute innovation initiatives. This challenge, which we call the other side of innovation, is widely misunderstood. Some companies conflate this side and the other side, believing it is all the same. Others imagine that executing an innovation initiative can’t be much different than executing day-to-day operations. Both views are wrong. Innovation execution is neither innovation nor execution. It is its own unique beast.
Yes, you read it right. The title of this piece is ‘Great to Good’. I’m going to talk about how, in the 21st Century, we need ‘Goodness’ more than ‘Greatness’ when it comes to innovation. 20th Century was about a few people finding GREAT discoveries. 21st Century is about all of us, using the breakneck speed connectivity that technology provides, to do GOOD things together for a better future. That is my meaning of Great to Good.
The work of innovation – whether you’re doing R&D, creating a breakthrough, pursuing a disruptive strategy or sustaining your core – is not business as usual. It doesn’t work in a straight line, and the more radical the project the more uncertainty there is. This is more evident in domains where lives are at stake; such as medicine.
Our businesses are designed to reject new ideas for all of the right reasons—often it makes no sense to throw sand in the gears of the well-oiled machines we call companies. Yet to remain competitive, to grow revenue in a substantial way, we MUST do better. That starts with recognizing that our best path to organic growth is the creative ideas that are trapped within our companies with little hope of escape.
Everyone is mesmerized by the mystery and magic of innovation and new technologies through AI, Blockchain, IoT, AR/VR, Digital Ecosystems and more. Conversations center around the latest products and services as well as the future impact of a digital life. Yet there is one question that is surprisingly overlooked in many circles - how will leaders and teams innovate and collaborate in a changing business world?
What makes great innovators different is that they succeed where most others fail. They not only come up with new ideas, they find ways to make them work and create value for the rest of us. Even more importantly, they are able to do it consistently, year after year, decade after decade.
Why do established businesses fail? Because they miss the future. And what contributes to them missing the future? Many things, among them is a focus on maintaining the status-quo while avoiding uncertainty.
In a recent seven-year study in which I looked in depth at 50 projects from a range of sectors, including business, health care, and social services, I have seen that another social technology, design thinking, has the potential to do for innovation exactly what TQM did for manufacturing: unleash people’s full creative energies, win their commitment, and radically improve processes.
Groups whose members interacted only intermittently preserved the best of both worlds, rather than succumbing to the worst. These groups had an average quality of solution that was nearly identical to those groups that interacted constantly, yet they preserved enough variation to find some of the best solutions, too.
Usually, when a company finds that a competitor or Startup has found an innovative way of delighting their customers, their reaction is not to jump for joy about how they can also benefit from this new innovation. Their reaction is usually anger. Fear. And the desire to fight to defend what they have. This is a cognitive bias called Loss Aversion.
Business innovation benefits business owners and consumers alike. It helps grow competitive advantage in saturated markets and time and time again have proven to be financially lucrative and socially inspiring. It's crucial to any organization's long-term success and especially hard to scale and maintain.
Being different is not the same as being differentiated. One of my mantras in business and in life is, “Just because you can, doesn’t mean you should.” Just because they could create a unique experience at the Revel that bucked the design used by every other casino, didn’t mean they should.
You don’t innovate by adding more activities to what you already do. You innovate by eliminating those activities that impede it. Yes, organizations get in their own way just like people do. Innovation has many enemies that act as inhibitors to innovation; the biggest enemy being your existing culture. Simply pointing out these enemies isn’t enough, you have to create mechanisms to combat them. And most of the challenges are related to what management rewards and punishes, which drives people’s behavior.
To create a culture of innovation you have to think and act different. The organizations that fail at innovation focus on neither. Rather, they believe they act – through some version of an innovation program that includes training, workshops and tools – and revert to their old ways when that fails. If they internalize that culture comes first they’d accept that mistakes are an inevitable consequence of doing something new.
In most cases, to run a company, the management has reached a certain age and experience. Investors love a promising start-up, as long as they have an older advisory board. Here’s a perspective that the management team don’t want to hear: innovation happens when people, who can see something happening in the future with crystal clarity, persuade older people so they can believe it too.
Innovation is famously difficult — many projects end up losing money, frustrating employees, and going nowhere. And yet corporations and governments spend billions of dollars annually pursuing innovation. This huge spending would generate more value for businesses and societies if the innovation success rate were just a little higher. Is there a way to increase the success rate without spending more?
It turns out that the word “innovation” is not a Harry Potter-esque magical incantation that, once spoken, renders companies more inventive, creative, and entrepreneurial. The word can be uttered by a CEO speaking to employees or Wall Street analysts. It can be emblazoned on the door to a new innovation center in Silicon Valley. But there are thorny cultural, strategic, political, and budget issues that must be confronted by CEOs and other leaders if they want to ensure that their organizations can be hospitable to — rather than hostile to — new ideas.
Have you ever wondered what it takes to keep teams coming up with breakthrough creative ideas, year after year? One of the secrets is in how often there is an influx of new talent into the team. While it’s tempting to keep successful teams working together on project after project, after a while these teams begin to lose their edge. So if you want to keep your innovation projects successful, it is important that you put in place a system whereby people are moved between projects.
Success does not, in fact, always breed more success, sometimes it breeds failure. That’s why every business needs to innovate. Yet innovation is not, as some would have us believe, just about moving fast and breaking things. It’s about solving the problems you need to create a better future. What most fail to grasp is that a key factor of success is how you source problems, build a pipeline and, ultimately, choose which ones you will work on.
Innovation has many enemies, expertise is one of them. Experts only know the way that got them there. They want to give answers, but innovation requires new questions. These new questions can only be asked by shifting ones perspective, a job outsiders are perfectly positioned for. Outsiders are the ones who change the game because they’re not blinded by expertise; they approach the situation from a new perspective.
Do liberalization policies increase the rate of the innovation output through promoting more openness to diversity of input and opinions? The two arguably most innovative U.S. states, California and Massachusetts, have traditionally been the leaders of social liberalization.
Without realizing it, even well-managed businesses versed in modern management practices can generate an environment that is hostile to innovation. For all of these reasons, large companies need to have a distinct Innovation Unit headed up by a senior executive who ideally reports to the CEO.
The technology world is changing at a very fast pace and new trends keep on emerging every day. The latest product that has received a warm reception and excited many business managers is Artificial Intelligence. Everybody is fascinating about AI because it promises to be an effective way of performing routine tasks and can be applied to the various sectors of the economy.
One of the most contentious aspects of AI is the meaning of 'intelligence.' Forget your preconceived notions of intelligence and your fragile egos, Turing said. If in a set of narrow tasks, a computer can fool you into thinking that it is a human, then it is said to behave intelligently (whether it actually is or not). If it acts, walks, and quacks like a duck, it is safe to consider it a duck—only in the context of those behaviors, of course, and not for eating!
Today digital technology is all the rage because after decades of development it has become incredibly useful. Still, if you look closely, you can already see the contours of its inevitable descent into the mundane. We need to start preparing for a new era of innovation in which different technologies, such as genomics, materials science, and robotics, rise to the fore.
According to a recent study by the Unilever Foundation, there is a strong desire for corporations to improve their innovation capability by working more closely with startups. The report estimates that corporates and startups will form the ultimate partnership, working side by side in the same physical space by 2025, seeking greater proximity for innovation as they evolve to meet changing consumer needs.
According to the World Economic Forum’s “Future of Jobs Report”, creativity and problem solving are listed in the top three skills that employees will need by 2020. Critical problem solving is one of the most important attributes that employers look for in a new hire because no organization is without problems, and every industry will eventually be disrupted.
Innovation is a code word for leadership. Yet innovation is not business as usual; it requires a different mindset: a growth mindset. You have to be comfortable with ambiguity, putting yourself and your organization un uncomfortable positions, having a point of view and pursuing it with conviction.
As I listened to dozens of cutting-edge speakers talk about how they’re doing innovation in most leading corporations today, I can’t help but think we’re still in the pre-Moneyball era. Sure, we’re trying to put structures around our innovation teams and get customer feedback at every step of the way, but at the end of the day this stuff is still largely based on our intuition. “We heard this from the customers, so this is our best guess at what satisfies their needs.” Sometimes we’re right. Usually we’re not.
In our research involving 1,500 companies, we found that firms achieve the most significant performance improvements when humans and machines work together. Through such collaborative intelligence, humans and AI actively enhance each other’s complementary strengths: the leadership, teamwork, creativity, and social skills of the former, and the speed, scalability, and quantitative capabilities of the latter.
As the importance of innovation is starting to become clear for corporate leaders, there are a few myths and bad practices that are also taking hold. For example, I have heard several innovation leaders talk about letting a thousand flowers bloom and espouse the notion that there is no such thing as a bad idea. In my experience, this premise is flawed and can lead to innovation having less impact within our companies. Not all ideas are created equal.