journey innovation management

10 Steps of Innovation Management – Explained

How do successful companies consistently innovate, adapting to changing landscapes and staying at the forefront of their industries?

The answer lies in the carefully managing innovation.

Navigating the complex realm of innovation requires a strategic approach, and that’s where the key innovation management comes into play.

In this blog post, we’ll explore the key steps of innovation management and how these can be carried out to turn innovative ideas into a business success.

Whether you’re a seasoned innovation leader or just beginning to explore the possibilities, these steps will serve as a roadmap for effectively managing innovation within your organization.

Let’s dive in and dig deeper to understand key steps of innovation management.

Definition of Innovation Management

Innovation management refers to the systematic process of planning, organizing, coordinating, and controlling activities that facilitate the generation, development, and implementation of novel ideas within an organization.

It involves the strategic direction of innovation, ensuring that creative thinking is not just a sporadic occurrence but an integral part of the organizational culture.

Innovation management encompasses a range of activities, from identifying opportunities for innovation and idea generation to the development, testing, and implementation of new products, services, or processes.

It is a holistic approach that considers both the creative aspects of generating ideas and the structured processes required to bring those ideas to fruition, ultimately driving sustained growth and competitiveness in a rapidly evolving business landscape.

Importance of Innovation Management 

Innovation management holds paramount significance in today’s dynamic and competitive business environment. It serves as the lifeblood of organizations, fueling their ability to adapt, evolve, and thrive. Several key reasons underscore the importance of innovation management:

Sustainable Growth: Innovation is a catalyst for sustained growth, enabling companies to create and capitalize on new opportunities. By continually introducing innovative products, services, or processes, organizations can expand their market share and stay ahead of the competition.

Competitive Advantage: In an era of rapid technological advancements and globalization, maintaining a competitive edge is essential. Effective innovation management allows businesses to differentiate themselves by offering unique and superior solutions, making it challenging for competitors to replicate or surpass their offerings.

Adaptation to Change: The business landscape is characterized by constant change, be it in consumer preferences, market trends, or technological advancements. Innovation management equips organizations with the agility and flexibility needed to adapt to these changes swiftly and effectively.

Increased Efficiency and Productivity: Innovations often lead to process improvements and increased efficiency within an organization. Through the implementation of innovative technologies or streamlined workflows, companies can optimize their operations, reduce costs, and enhance overall productivity.

Customer Satisfaction: Understanding and meeting customer needs is at the core of successful innovation management. By developing products or services that address customer pain points or provide added value, businesses can enhance customer satisfaction, loyalty, and retention.

Future-Proofing: Innovating today is a strategic investment in tomorrow. Organizations that prioritize innovation management are better positioned to anticipate future trends, technologies, and market shifts, ensuring their relevance and longevity in the ever-evolving business landscape.

Read more about: Why is innovation important in workplace?

Step 1: Establishing a Culture of Innovation

Establishing a culture of innovation is the foundational step in the innovation management process, creating an environment where creativity thrives and new ideas can flourish.

Building such a culture takes time. Why?

Because it involves creating structures, policies, and practices that encourage and reward innovation.

Leaders play a pivotal role in setting the tone, demonstrating a commitment to innovation, and providing resources and support for employees to explore and experiment with their ideas.

By fostering a culture that values and supports innovation, organizations empower their teams to think outside the box, take calculated risks, and contribute to the continuous evolution of their organization.

For a supportive culture, open communication and collaboration is the key that creates a synergy that propels innovation forward.

Another important cultural aspect that is needed for innovation management is to promote a risk-tolerant mindset. In this environment, employees are encouraged to embrace uncertainty and view failures not as setbacks but as learning opportunities.

Leaders should communicate that taking risks is not only acceptable but valued, provided that there is a willingness to learn from the outcomes.

Step 2: Identifying Opportunities for Innovation

Identifying opportunities for innovation is a pivotal step in the innovation management process, requiring a thorough exploration of external and internal landscapes.

It starts with conducting comprehensive market research and analysing industry trend.

This primarily involves monitoring technological developments, studying competitors’ strategies, and identifying shifts in consumer behavior, understanding gaps in the market that may open new avenues for innovation.

This data-driven approach enables businesses to identify opportunities that align with market demands and have the potential for substantial impact.

Customer feedback serves as a valuable source of inspiration for innovation, guiding the development of solutions that directly address the needs of the target audience. Organizations that prioritize customer-centric innovation build stronger relationships with their clientele and are better positioned to create products or services that resonate in the market.

Lastly, assessing internal capabilities and resources is important because it determines organizations’ capacity to pursue specific innovation initiatives and identify areas where additional resources or partnerships may be necessary.

Step 3: Idea Generation

The most crucial step in the innovation management process is idea generation, a phase where the creative energy of a diverse workforce is harnessed to explore potential solutions.

One widely adopted method for idea generation is through brainstorming sessions.

These sessions provide a platform for teams to come together, share thoughts, and generate a multitude of ideas in a collaborative and unfiltered environment.

The emphasis is on quantity rather than immediate evaluation, encouraging participants to build on each other’s ideas and think beyond conventional boundaries.

The free-flowing nature of brainstorming promotes creativity and often leads to the emergence of innovative concepts that might not have been uncovered through more structured approaches.

Organizations can tap into the collective intelligence of their workforce and beyond through crowdsourcing and employee involvement.

Crowdsourcing leverages the diverse perspectives of a larger community, whether it’s customers, partners, or the general public, to generate ideas.

Employee involvement, on the other hand, recognizes that innovation can come from any level within the organization.

Leveraging technology for idea generation has become increasingly prevalent in the modern era.

Online forums, idea management software, and digital collaboration spaces empower teams to contribute ideas in real-time, promoting continuous innovation.

Moreover, technology allows for the efficient organization and analysis of a large volume of ideas, aiding in the identification of promising concepts for further development.

Step 4: Idea Screening and Selection

In this step of idea screening and selection, the focus shifts from quantity to quality.

Organizations must define specific parameters such as feasibility, market potential, alignment with strategic goals, and resource requirements.

These criteria act as a filter, allowing the organization to objectively assess each idea’s viability and potential for success.

By establishing clear evaluation standards, decision-makers can ensure that selected ideas align with the organization’s overall objectives and have the potential to address identified opportunities.

Once criteria are established, the next aspect involves prioritizing ideas based on strategic objectives

Not all ideas are equal, and organizations must allocate resources wisely.

Prioritization involves assessing ideas in the context of the organization’s long-term goals, competitive positioning, and market trends.

To enhance the rigor of the screening and selection process, organizations often form cross-functional evaluation teams. These teams bring together individuals from different departments, each contributing unique expertise and perspectives.

Cross-functional teams help in evaluating ideas from various angles, considering technical feasibility, market potential, financial viability, and operational impact.

This collaborative approach minimizes the risk of bias and ensures a comprehensive evaluation.

Moreover, it fosters a sense of ownership and collective responsibility, as team members from different functions collaborate to identify the most promising ideas for further development.

Step 5: Concept Development and Testing

The next step is about translating abstract ideas into concrete plans, considering the technical aspects, feasibility, and the overall design of the proposed innovation.

It may include further research, detailing specifications, and outlining the necessary resources for development.

The goal is to transform promising ideas into well-defined concepts that serve as the basis for the subsequent stages of the innovation process.

Through prototyping and testing, organizations can create tangible representations of their ideas to evaluate their functionality and appeal.

Prototypes serve as early versions of the product or service, allowing for practical assessment and refinement before full-scale production.

Testing involves subjecting prototypes to real-world conditions, gauging performance, and identifying potential challenges.

This iterative process of prototyping and testing enables organizations to uncover unforeseen issues, make necessary adjustments, and enhance the overall quality of the innovation.

In parallel with prototyping and testing, organizations should actively collect feedback from the target audience.

This customer-centric approach involves seeking input from the individuals who will ultimately use or benefit from the innovation.

By gathering feedback early in the development process, organizations can identify user preferences, address pain points, and refine the concept based on real-world insights.

Step 6: Business Analysis

Organziations conduct a comprehensive business analysis to ensure that the selected concepts not only align with strategic goals but are also financially viable and sustainable.

The first aspect is assessing financial viability.

Organizations must evaluate the potential economic impact of the innovation by considering factors such as expected revenue, cost savings, and overall financial sustainability.

This involves forecasting the financial outcomes associated with the implementation of the innovation, providing decision-makers with a clear understanding of its potential contribution to the organization’s bottom line.

Simultaneously, estimating costs and return on investment (ROI) is integral to the business analysis phase.

It entails calculating the financial resources required for the development, implementation, and maintenance of the innovation.

By quantifying costs and potential returns, organizations can make informed decisions about resource allocation and assess the financial feasibility of the innovation.

Conducting a risk analysis is the final element of the business analysis step.

Innovation inherently involves uncertainty, and organizations must identify, assess, and mitigate potential risks associated with the innovation project.

This includes evaluating technical challenges, market dynamics, regulatory compliance, and any other factors that may impact the successful implementation of the innovation.

Step 7: Development 

Development is one of the key steps of innovation management where the selected concept is translated into a tangible product, service, or process.

One crucial aspect of this step is allocating resources. Organizations must strategically assign the necessary human, financial, and technological resources to ensure the successful development of the innovation.

This involves creating a detailed project plan that outlines tasks, milestones, and resource requirements. Effective resource allocation is essential for maintaining project timelines, managing costs, and optimizing the efficiency of the development process.

Bringing together individuals with diverse expertise and perspectives from different departments fosters a holistic approach to innovation.

Collaboration ensures that the development process considers various aspects, including technical feasibility, market relevance, and user experience.

Cross-functional teams enable the seamless integration of different elements, from design and engineering to marketing and sales, contributing to a well-rounded and successful innovation.

Step 8: Testing and Quality Assurance

Testing and quality assurance is about rigorous examination to ensure it meets the desired standards and is ready for market introduction.

Rigorous testing procedures are implemented to evaluate the functionality, performance, and reliability of the innovation.

This involves subjecting the product, service, or process to a series of tests that simulate real-world conditions and usage scenarios.

The goal is to identify and rectify any defects, inconsistencies, or shortcomings before the innovation is released to the market.

Integrating feedback loops for continuous improvement is an essential component of the testing and quality assurance phase.

Organizations establish mechanisms to collect feedback from both internal stakeholders and, if applicable, a select group of external users.

This iterative feedback process allows for the identification of potential enhancements or optimizations.

Quality assurance measures involve setting and adhering to predefined benchmarks, specifications, and industry standards.

Organizations must establish clear criteria for quality and verify that the innovation meets or exceeds these standards.

Step 9: Implementation and Feedback 

At this step of innovation management, innovation is introduced to the market or integrated into existing processes within the organization.

The development of a comprehensive implementation plan is a must for this step.

This plan outlines the necessary steps, timelines, and responsibilities for the successful integration of the innovation.

Planning ensures that all relevant stakeholders are aligned with the implementation goals and that resources are effectively deployed.

Employee training and change management are essential components of a successful implementation.

As the innovation may introduce new processes, tools, or ways of working, providing adequate training is crucial to ensure that employees are equipped to embrace and effectively utilize the innovation.

Organizations actively seek input from customers to gauge their experiences, satisfaction levels, and areas for improvement. This ongoing feedback loop ensures that any issues or concerns are identified promptly and addressed, contributing to the overall success of the innovation in the market.

Organizations must be agile and responsive, ready to make adjustments based on real-world feedback and changing market dynamics.

Step 10: Scaling and Replicating Successful Innovations

The final step in the innovation management process involves scaling and replicating successful innovations. This is a strategic task that aims at maximizing the impact of a proven concept.

Assessing market demand is a crucial aspect of this step that requires organizations to evaluate the reception and demand for the innovation in the market.

Understanding the extent of market demand informs decisions regarding production volumes, distribution channels, and overall market penetration strategies.

Organizations may explore new geographical regions, customer segments, or industry applications to broaden the reach and impact of the innovation.

This expansion may involve strategic partnerships, collaborations, or the development of complementary products or services.

Organizations should conduct thorough evaluations of the innovation management process, identifying strengths, weaknesses, and areas for improvement.

Insights gained from the success and challenges encountered during the innovation journey provide valuable lessons that can inform future initiatives.

This learning process contributes to the organization’s overall innovation capability, fostering a culture of continuous improvement and adaptive innovation strategies.

For further reading about a framework of innovation management; read this Stage and Gate Process to Manage Innovation

Final Words

Going through the steps of innovation management is like taking a big journey for organizations. Starting from creating a culture that loves new ideas to making sure people want what you’ve created, each step is super important. It’s like a recipe for success in today’s fast-changing business world. To do this well, companies need to be good at thinking of new things, adapting to change, and always trying to get better. When companies get good at these steps, they not only make cool new things but also become really good at always being creative and finding new ways to do things better

About The Author

Tahir Abbas

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Description

Innovation Management Strategies and Best Practices

Learn about the concept of innovation management and master the process with the help of best practices.

• Introduction

What is Innovation Management?

• What Does the Innovation Management Process Look Like?

How to Improve Your Innovation Management Program

Roles and responsibilities in innovation management, subscribe to the hype innovation blog.

As you start (or grow) your innovation management program , you’ll no doubt be aware that it’s not a straightforward journey, and there are many boxes to tick before convincing your stakeholders of the need to innovate and creating impact. 

Unfortunately, there’s no one golden rule for success here. Every company is different, with its specific goals, culture, and dynamics all impacting its route to victory. Having worked in the field of innovation management for nearly a decade, I've noticed that although there are vast differences between companies, the most successful online innovation management programs all share common themes. I’ve compiled those themes to create this ultimate guide to innovation management as a collection of strategies, processes, and best practices.

I’ll cover everything from beginners’ mistakes (so that you don't make the same ones!) to success stories of programs creating hundreds of millions of dollars in new revenue. I’ll also share in-depth advice on the core elements of your program as well as simple tips and tricks you can start using today. 

Whether you’re an expert in the latest innovation management trends or just starting your first program, I hope you’ll benefit from this guide.

Let’s begin with the foundations of innovation management, what it is, and where to start.

Innovation management is the end-to-end process of driving inspiration and ideas from a relevant community all the way through to concept development and value creation. The result can be new products and services (or enhancements to existing ones), process improvements, or cultural change within an organization or ecosystem.

Successfully harnessing innovation requires a cohesive and structured strategy, direction, and focus that brings people, processes, and technology together to facilitate idea generation at the front end and execute value creation at the back end.

What Does the Innovation Management Process Look Like? 

1. align your company strategy and innovation goals  .

Starting a process without providing clear direction is like trying to cross the ocean without a compass. Of course, one such unguided effort discovered America, but most compass-less attempts ended shipwrecked on the rocks. Your company won't benefit from unaligned innovation management. No matter how fantastic the idea is, if it doesn't align with the business strategy, there won't be enough cultural readiness to realize it.

In my previous life as an innovation program manager at a large international cable service provider, we once received a fully elaborated concept to improve customers' mobile internet reception by adding antenna functionality to outdoor jackets. Although there was a customer need, and the idea was technically feasible, the implementation wasn't approved because entering the fashion market was too far from where the company was heading.

This example highlights that you need to inform your idea-generating crowd about the kind of input you're looking for. Otherwise, they'll spend (or waste) their time on ideas that won't make the cut. Your idea-generators and innovators need a clearly defined framework to understand the company's (desired) direction. 

Formulate a definition of what “innovation” means in your company and set an innovation strategy aligned with your company’s vision. Based on this overall strategy, you can define strategic innovation areas. Describe these areas in a simple-to-understand way and engage as many people as possible.

Simplifying the description of your innovation strategy has a surprising side effect: improved strategic awareness! People seem more excited about innovation than strategy formulations (if shared at all), so the early successes of a just-started innovation program often include getting your employees on board.

Pro tip: Align your innovation approach with the culture too

The topics and goals you prioritize on will depend to a large extent on what you'd like to do as an innovation team and your employees’ level of online innovation experience.

You’ll see different behavior from different sets of people, depending, for example on geographical regions, skill sets, and demographics. Some people flourish under direct orders, while others thrive more independently. You may want to rephrase your requests depending on your audience.

This also applies the other way around: You should align your company’s employee targets with your (new) innovation goals. Objectives related to innovation are usually not explicitly defined, but the organization expects (or hopes) its employees will think outside the box and offer ideas that change the organization for the better. These collaborative and creative behaviors are often not rewarded because they're hard to see. However, it makes sense to review your employees’ targets because, as Steven Kerr puts it in his highly regarded 1995 article, On the folly of rewarding A, while hoping for B , "for an organization to act upon its members, the formal reward system should positively reinforce desired behavior, not constitute an obstacle to overcome" ( PDF ).

If your company pays bonuses based on current product performance, you’ll have a hard time convincing stakeholders to adopt a new product idea that might even cannibalize the current one. The better a company aligns its employees’ targets to its innovation goals, the more comfortable people will feel in changing course.

2. Launch targeted idea campaigns

"I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out." – Jeff Bezos, Founder and CEO of Amazon

When I was new to innovation management, my first attempt to collect ideas from employees was via an online suggestion scheme. It was like that wooden box you often see hanging around in the company lunchroom, where employees can deposit their ideas. Though the goal of the suggestion box is to gather smart improvement ideas, they mainly gather dust. This was also the case with my online version.

Colleagues were submitting ideas, but they couldn't track their progress. And because our instructions were not much more than "give us your ideas," employees didn't always seem to understand what kind of ideas the company was looking for. And I had a tough time convincing the business to spend time on maturing and implementing the little gems that we did receive on occasion. It was clear we had to change our strategy, so we decided to take a targeted campaign approach .

If your  s trategic innovation areas describe what kind of idea categories your company is looking for, a targeted campaign is the vehicle to find answers. It's a bit like a fishing trip. When you're planning your trip, the type of fish you want to catch will be the deciding factor. It will decide your fishing spot, whether you need a boat, what buddies to take, and, of course, what fishing rods to use.

Similarly, targeted campaigns call for ideas that answer a specific need. Through these campaigns, you provide insightful background information to guide the crowd. You can't expect them to think outside the box if they don't know what the box is. And there’s always a box, but often it’s bigger and shaped differently than we might imagine. However, there’s always a limit on the budget for, or what a sponsor has an appetite for, so this constraint should be shared.

The playing field isn’t empty when you start a campaign. You already have a base of customers, and then there may be relevant projects that people need to be aware of. And what are the rules of the game? Is there a specific timeframe or budget for the implementation of the ideas?

By providing this framework, you might exclude some ideas, but only those ideas that, by definition, you’re not looking for. And you'll see ample ideas coming in that are of much better quality when collected through targeted campaigns. This targeted approach allows you to exclude ideas you won't be able to process, which has a significant, positive influence on the success of your program!

Pro tip: Use campaigns to address different topics and for different goals

Long-term engagement comes from relevant, as well as varied, campaign topics over time. Solicit ideas for both internal- and external-facing topics, and for current as well as new products and services. People are intrinsically motivated by different things, and by changing the campaign topics, you'll involve a bigger crowd over time. Besides creative or problem-solving campaigns, you should also run discovery, testing, and feedback campaigns to engage your crowd during other phases of innovation .

Whatever you do, make it specific and realistic. Ask for the incremental ideas hiding in your management team's blind spots. Management will be surprised they didn't think of it themselves and will ask why the company isn't already doing it that way.

Identifying simple solutions that have a big effect, together with the relatively simple, cheap, and short implementation of those ideas, will allow you to prove the value your program creates for your company.

Similarly, when you're looking for more radical ideas, ask down-to-earth questions. I've seen companies ask for Utopian end states, which are just too hard to imagine from a status quo situation. Break it up in pieces, visualize a position from where the crowd can start their creative journey, and – especially here – involve your people in feedback or testing instead of just idea generation. Try to make things as simple and straightforward as possible, and campaigns will take the  fuzz out of the front end of innovation .

3. Build a transparent process and reporting structure  

While building your innovation management program, you'll need to overcome skepticism. Innovators may experience the process as vague or fuzzy, and others may think it's all just a waste of time that can never result in actual benefits.  You'll need to show the complete process and report on key performance indicators (KPIs) to build trust, grow sustainable sponsorship, and engage your audience . 

To generate faith and show that submitting an idea isn't just a waste of time, make sure innovators understand the full process before submitting their ideas. Explain the timelines and tell your audience about the experts you have available to grow and evaluate their ideas. And when you've chosen the top ideas for implementation, make sure there's a transparent transition of ownership. The person who came up with the idea isn't always the best one to take the idea forward and implement it; be aware of this and have experts available who, when adequately showcased upfront, will create the confidence that an idea will be implemented.

Rigorously report on outcome KPIs, including actioned ideas, revenue potential, realized revenue, and savings. Without demonstrating the value added, the program will die over time. Initially, you may be able to please management with participation and submission numbers, but we all know that an idea on its own is nothing; it's the execution that brings value.

Therefore, run “low-hanging fruit” campaigns early on (cost savings, process improvements, or other tactical topics that are of significant interest to your senior management). Proposals coming from these campaigns tend to have shorter implementation cycles than those from more radical campaigns, which will then allow you to show real value sooner. And presenting actual results will further promote the use of campaigns to solve challenges. 

But what KPIs should you report on?

Many companies measure their innovation activities with traditional metrics, like return on investment (ROI), to decide which ideas to take forward based on business cases. Although this may work for ongoing operations and continuous improvements, it's often counterproductive for (radical) innovation as this comes with a lot of uncertainties that negatively impact the validity of your calculations.

The must-read book " The Corporate Startup ," by Tendayi Viki et al., describes three types of KPIs: (1) Reporting, (2) Governance, and (3) Global. These KPIs can all be divided into "Activity metrics" (like the number of ideas, Most Valuable Player (MVP), coaches, events, etc.) and "Impact metrics" (like the number of assumptions identified, business models validated, patents granted, etc.). 

Particularly at the beginning of your innovation program, when you don't have (many) ideas in your pipeline, you’re likely to be reporting on the percentage of employees engaged, the number of campaigns run, and ideas generated, but you can only get away with that for so long. Eventually, you'll be required to deliver insights into how ideas are progressing through your funnel and how this is impacting the bottom line. But don’t let this become your program’s single assessment criteria; I've seen small innovation teams being held responsible for the "executing" back end and "realized ROI" while they only had influence over the "searching" front end of innovation.

4. Continuously communicate your campaign

"Communicate, communicate, communicate" has always been one of my top five pieces of advice for collaborative innovation managers. Work-related to innovation management programs is often added to employees’ already very full-time jobs, and although your innovation program might be all you can think about, it's not top-of-mind for everyone.

Your audience will forget about you and your program if you stop communicating, which is why it's crucial that you have an innovative communications plan that includes the following:

Shout out loud

Your entire potential crowd needs to be aware of your innovation program. You want them to be aware so they can participate, of course, but awareness is also essential to preventing similar initiatives from popping up elsewhere in the organization, which could later cause issues with best-practice sharing or implementation scaling. Create your own internal branding and tone of voice that deliberately differentiates you from your standard corporate communications. You're doing something unusual here by asking for new ideas and operating in the  "fuzzy" front end of innovation . Be proud to be different and act like it!

And make sure everybody is aware. Run "above-the-line"/mass media promotional activities like posters, videos, intranet messaging, etc., to explain how the program links to the company strategy, what is going to happen, and what you expect from your crowd.

David Willets, Head of Innovation at Baxi Heating , took this advice seriously and shared his story with me.

"When we relaunched Baxi’s idea and innovation management program, we inherited a boring orange lightbulb as our logo, and this had become our identity. It looked like someone had typed 'innovation' into a clip art search box from the '80s. Considering we wanted to do things differently and encourage others to do the same, this logo wasn't going to cut it. We had a small team of volunteers, mostly entry-level staff from the call center, and I was talking about how I wanted to infect everyone at Baxi with an innovation virus bit by bit and see it spread through the company. I told them we should hack into Baxi and show how cool it would be to start doing things differently. Meanwhile, one of the guys was scribbling on his note pad; he'd drawn the Baxi logo and started scribbling all over the X. He was like 'let's just get some orange spray cans and graffiti all over the X, and then we'll show we've taken over and Baxi's been hacked.' Everyone loved it, and after we'd calmed down, we decided that the X would be our thing and represent doing things differently at Baxi. With anything new, you have to get people to take notice, and if you're saying you want people to do things differently, you have to live by that and show them that you are prepared!"

Review ideas and give feedback

A surefire way to kill your innovation program is by not responding to ideas. People who submit an idea but then never hear back will turn into skeptics and eventually stop participating altogether. It's critical that you thank them for their ideas and ask them to elaborate where necessary, and then provide feedback on that again. Yes, this is a cumbersome task, so make sure you involve a broader team for this. And if you do it right, it's amazing to see your crowd collaborate and turn those initial hunches into fully-fledged solutions!

Sarah Kelly, Innovation Program Manager at  Liberty Global , says:

“For targeted campaigns, we try to get initial feedback within 24 hours of the idea being submitted. That doesn’t mean they get a yes or no answer; it means we thank them for their idea and either let them know which SMEs (subject-matter experts) we are sharing it with, or try to draw out further information from them, essentially growing the idea.”

Promote collaboration

The primary objective of your innovation communications plan is to engage your crowd. Deliberately explain what kind of behavior you'd like to see from them. It's not just about submitting ideas but also about commenting on others' ideas or providing feedback on proposed plans. Involve more and more people in the discussion by sharing ideas and asking for their feedback.

Promote collaboration instead of competition. Competition may increase the number of idea submissions but will negatively impact collaboration and thus idea growth. James Rose, Vice President of Innovation at Technicolor, shared his experience of a competitive versus collaborative approach:

“When we were using a platform that was competition-centric, we saw undesired behavior. People would – for instance – prefer to vote for their friends, bosses, and country mates instead of the best input. We also saw less meaningful discussions and less collaboration. We received feedback from some of the people high up in the competition rankings that they thought twice before commenting or elaborating on someone else’s idea because they wanted to win. After we switched to a more collaborative platform, we saw a significant increase in collaboration.”

And, even though you're aiming for online collaboration, don't forget about being present offline as well. Create trust by showing that there are humans behind this online platform. Decorate your offices with triggering posters or stickers, or kick off your new campaign with an offline ideation session. 

Report to C-level

You want senior management sponsorship. You need it to show employees it's okay to spend time on the program, to promote engagement among middle management , to provide budget, and so on. Report on innovation metrics (which I'll discuss later in this article) and make sure you communicate the value that is of specific importance to these "C-levels." Continuously inform and educate them, and over time, you'll create strong supporters – especially if you can wow them now and then.

Share progress

Innovation is exciting – especially at the creative, divergent, "nothing-is-bad" start, and, of course, at the end when launching your new-to-market product or service. In between, however, it can become quite a tedious process, continuously investigating whether your new idea makes sense.

Build, measure, learn sounds very simple and straightforward, but after your umpteenth iteration, you (and your management, even more so) might just want to move on to the next phase. But keep communicating about your progress. If implementations are stalling, you might be able to celebrate that new employee groups have been engaged, top innovators recognized, or innovation methods utilized in your process. Keep communicating because as soon as you stop, business-as-usual will absorb all the attention. 

5. Align your evaluation process with your campaign goals and approach  

The evaluation stage can be a massive pain for evaluators when not well prepared. And, if you didn't set the right criteria to evaluate against, you won't end up with the proper selection of ideas to solve your campaign challenge. These pointers should help to smooth your evaluation process.

Plan upfront

While shaping your campaign's focus, make sure you carefully plan the meeting where the sponsor will choose from the top ideas and decide on next steps. Who needs to attend, how many ideas can be discussed, what's the expected quality level of ideas and preferred pitching method? Once all this is clear, you can work backward and design your evaluation process. Based on the estimated number of idea submissions, you can decide what evaluation methods to use, who should be involved, and schedule the meeting in their calendars. 

Go from many to few

If you invite all your employees to participate in an idea generation campaign, don’t be surprised to receive hundreds of submissions. And that's a good thing; as Linus Pauling, renowned chemist and the only person to win two unshared Nobel Prizes, said, “The best way to have good ideas is to have a lot of ideas.” But after this divergent thinking, you’ll need to  bring this down to a manageable set of ideas  and focus on the most promising ones.

Use community signals

For big numbers of ideas, you can use “community graduation,” which allows your crowd to make an initial selection based on the number of visitors, votes, comments, and so on. Of course, your crowd needs to be sufficiently knowledgeable and unbiased about the topic.

Run a triage evaluation

You could also carry out your initial screen by running a triage evaluation, where you ask your evaluator group just one simple question: "Would you like to take this idea forward?" One caveat: If only a small majority vote in favor, I'd recommend further assessment before making a final decision.

Make things clear

Because community graduation and triages don’t provide you with qualitative feedback, when you’re dealing with large numbers of ideas, you’ll need to highlight to your crowd that not all submitted ideas will receive elaborate feedback. 

Use scorecards

Once you've narrowed the ideas down to a more manageable number, run a more qualitative evaluation session by using scorecards. Create bubble charts or radar chart visualizations to support the decision-making by the campaign sponsor. Invite all decision makers to participate and use methods like dot stickering to vote for the best ideas or bring innovators and decision makers together in a "Dragons' Den" or "Shark Tank" setting.

Use the right metrics

The later in your evaluation process, the more specific your metrics can and should become. In the early evaluation rounds, you'll simply have too many ideas to dive into depth, but later, you need to get a more detailed understanding of the evaluators' opinions to elaborate on the most important elements of the ideas and make the right decisions. As coined by global design and innovation company IDEO , the innovation "sweet spot" is when an idea is "desirable, feasible, and viable”.

As well as these general assessment criteria, you should align your evaluation metrics to your campaign topic and question. You need to assess the technical feasibility of the ideas relate to new development, and when innovating an internal process, you'll need to assess the desirability of the ideas for internal end users instead of your customers. And, of course, it’s important to align your evaluation with your innovation goals too; it goes without saying that your evaluation can be much more specific for incremental innovations than radical ones.

6. Recognize everyone who adds value to your program 

Recognition is a very important element in your innovation management program. You’re asking people to do something in addition to their regular jobs, to share their thoughts about another department’s challenges, and to use (innovation) methods that unlikely to be completely familiar with. Entice your employees to participate by showing upfront what’s in it for them. Carefully consider what behaviors you’d like to see and recognize and reward them. When you recognize people for the number of ideas they submit, you’ll receive a lot of ideas but not necessarily high-quality ones. This approach also fails to push online collaboration to improve the submissions. A better method is to recognize the number of (constructive) comments and ideas selected for implementation.

Although some company cultures seem to prefer monetary awards, I recommend using non-monetary rewards to recognize your top campaign participants. The study " Effects of Externally Mediated Rewards on Intrinsic Motivation " in the Journal of Personality and Social Psychology (1971) details a number of experiments examining how external rewards influence people’s intrinsic motivation to perform an activity:

"The results indicate that (a) when money was used as an external reward, intrinsic motivation tended to decrease, whereas (b) when verbal reinforcement and positive feedback were used, intrinsic motivation tended to increase."

In his book " Drive " (2009), author Daniel Pink combined these findings with a number of related studies and concluded that monetary awards actually harm tasks that require conceptual, creative thinking. He also found that autonomy and purpose lead to better performance and personal satisfaction.

Based on the above and my insights from various collaborative innovation programs, I advise mainly using events to recognize your program’s top participants. Have senior management publicly hand out certificates or awards and make sure everyone in the organization is aware. Offer participants the opportunity to be involved in the next steps to realize the idea or allow them to pitch their own idea directly to senior management. Innovators seem to appreciate having the opportunity to protect their idea from changing over time, and it will give them new experiences and skills, as per Daniel Pink's finding about the importance of mastery.

Seed your campaigns to enhance engagement and quality

A key issue in innovation, and why we see it often fail, is that prior conditioning can prevent your audience from engaging and sharing ideas. Seeding is an excellent solution for overcoming this problem.

What exactly is seeding? 

Seeding is the act of inspiring your crowd at the start of your innovation project in order to improve their submissions. Your seeding efforts will need to be aligned with the goal and ambitions of your campaign. For example, if you're looking for incremental cost savings or process improvements, your campaign seeding should set the tone by highlighting success and failure stories of earlier attempts inside or outside your company.

As Tim Woods, innovation management expert and former HYPE marketing director puts it:

"If you want others to come up with something truly new, then your seed ideas should be unusual, radical, and different."  

Spending some time upfront to provide this inspirational content makes intuitive sense. In his book " The Four Lenses of Innovation , " Rowan Gibson, one of the world's foremost thought leaders on business innovation, points out that:

"Breakthrough thinking is usually built on an illuminating insight (or series of insights) into a situation or a problem that inspires an unexpected leap (or leaps) of association in the mind, resulting in a completely novel configuration of previously existing ideas."

Lead innovators, trend scouts, or subject matter experts (internal or external) should provide seed content before opening your targeted campaign to your audience. Submit seed ideas on your online innovation management platform, and/or invite speakers to raise awareness about your campaign. For instance, in an efficiency campaign, encourage a process owner to explain where delays arise; in a feedback campaign, ask a product manager to showcase new product concepts; or ask a startup or trend scouting agency to excite your crowd to come up with the more radical ideas. 

Enforce a time limit to stimulate creativity and get answers when you need them

Setting a time limit for idea submissions is also important. The solution you’re seeking ideas to uncover is likely to be required within a specific timeframe, and a time limit will enable you to plan a timetable for follow-up activities and implementation. A time limit for submitting ideas will also stimulate the crowd because many people are deadline-driven. And being able to communicate your results within a certain time will spur engagement in your subsequent campaigns.

During conversations I’ve had with advertising professional and creative inspirer Joop de Boers, Joop highlighted that time limits can drive creativity:

"It's very human that people postpone tasks to the latest moment. But the result of this is that such tasks stay in your consciousness where they get disturbed by other (more urgent) duties. Better is to write yourself a brief assignment, read it carefully, and then forget about it. This assignment then moves to your upper subconscious, and a solution will pop up at the most unexpected moments and situations. Unconsciously you work on a solution that always comes in time. And when the deadline is further away, that solution will just arrive later."

Create collaboration between highly diverse audiences

The best ideas come from collaboration between people from vastly different places in an organization as well as people within the organization. For example, frontline staff can give you insights you typically wouldn't get from your sales force. When thinking about engagement, make your audiences even more diverse than you initially planned. The whole point of having an online innovation program is that you remove the boundaries of your physical space (and the usual crowd in that space) and reach the entire organization.

Educate your crowd

Educating your crowd on innovation processes and theories will create a climate where people share, discuss, and improve ideas. Over time, consider more in-depth training for your employees, on theories like  Design Thinking  or  Lean Startup  (for instance, via Adobe Kickbox"-based workshops) to improve the quality of submitted ideas.

Amazon EU Program Manager Elaine Bromell, who was my innovation management counterpart at Virgin Media Ireland when we ran a Lean Startup-based idea development workshop there ( see video ), says:

“Even though we initially just took under 10% of employees through the training, we saw increased awareness and enthusiasm among almost all employees as well as a significant increase in idea quality.”

Advocates for your innovation management program

The c oncept of an advocate is simple. As defined in the Oxford Dictionary, an advocate is "a person who publicly supports or recommends a particular cause or policy." And this is precisely what you need to take your innovation management program to the next level.

Simply sending emails and putting up posters won't create real excitement. In fact, it will result in limited participation. Innovation advocates are intrinsically enthusiastic about your program in general or your specific targeted campaign. They can help promote your efforts and/or be the first point of contact when participants have questions. 

When I oversaw a global innovation management program reaching more than 40,000 employees in over 15 countries, we had country teams in place for local campaigns as well as to promote the international ones – in the local language and relating to local culture and regional programs. As well as these officially assigned teams, we had a volunteer advocate community in place (The Wildfire Club) that received additional program information and early invites to campaigns to spread the word (like wildfire!). These volunteers didn’t have any official tasks as these were the remit of the assigned country teams.  Besides their “advertising” role, meeting up with the volunteers periodically gave me invaluable feedback.

Another example of advocates in innovation programs comes from aircraft manufacturer Airbus . The Airbus innovation team built an impressive community of advocates to help manage, grow, and realize ideas. The role of this network of more than 150 "catalysts" (as they like to call them) is to foster, focus, and accelerate innovation within specific designated areas as well as more globally through Airbus via the advocate network.

The Airbus advocate network is managed by a central “Corporate Innovation” function, which is overseen by one full-time employee. The Corporate Innovation group helps keep the network active by connecting members via an online community, organizing in-person events to share knowledge, and inviting members to webinars and training sessions to learn about innovation methods, tools, and processes.

Konstantin Heckmann, Strategic Innovation Manager & Chief Architect, Airbus IdeaSpace at Airbus Group, told me that the advocate network has had a significant impact on the success of projects and the transformation of the company.

Make sure your advocates are fully aware of upcoming campaigns and provide them with the necessary information and materials to use in their activities. Besides these promotional pursuits, advocates – and especially those that are also subject-matter experts – can play a role in maturing the selected ideas. Innovation management consultant Eugene Ivanov points out that companies should  strive to create a pool of ad-hoc innovation experts . These knowledgeable go-to experts can validate the need and sanity check the feasibility to improve the quality of submitted ideas.

I would advise having an advocate in each department in each location to improve engagement and the quality of ideas throughout your organization rather than just where your assigned innovation managers sit. Create a matrix with all departments, teams, and locations, and identify available advocates per intersection or "cell." Based on the data from your innovation management system, also classify the engagement levels per cell and see if improvements can be made by adding advocates or further supporting them. You won't have (or need) an advocate per cell from the start, but this matrix will help clarify the reality in the ground and help you work toward your desired “advocate occupancy.”

In most cases, these advocates are volunteers, so search for intrinsically motivated people who are genuinely interested in collaborative innovation and who don't need expensive perks to thrive.

Search for articulate, lively personalities who are known by the people around them, and who know the organization, its people, and its projects well in order to make the connections that are so important in making innovation happen. And keep them enthusiastic – even more so than your general crowd. Make it a fresh and exclusive club that people want to belong to, and your advocates will always champion your innovation efforts.

Identify your key sponsors

You need to encourage engagement by getting your C-suite to back your program. Having an overall patron or champion for each strategic innovation area highlights that the company is behind your innovation efforts and also shows employees that it's okay to devote some time to the program.

You also need the support of middle management to legitimize your more specific innovation activities. You'll be reaching out for ideas  (maybe through  "targeted campaigns" ), and having the right person behind the campaign will give your innovators the confidence that the right person will assess and potentially implement ideas.

Alignment and support will get you visibility, engagement, and ideas, but you'll need full sponsorship to implement those ideas. Begin with the end in mind and know what you'll do with the ideas. Make sure there are business experts to join the online discussion and elaborate on submissions, evaluate ideas, and eventually execute the selected concepts.

Also, settle on a budget upfront for your selected concepts. It doesn't make sense to collect ideas, only to discover there's no funding for them. Have everything in place for every targeted campaign before you kick them off. Because targeted campaigns focus on a specific topic and question, you'll be able to identify these specifics upfront. You might want to adjust things along the way, but that's what keeps innovation exciting, right!?

Marcel Broumels, Head of IdeaLab at German-based energy company Innogy , shared his experience of how sponsorship helped to create a real impact:

“After launching our program, we instantly decided to bring in support of our company’s CEO; as the sponsor of our biggest campaign. His involvement was crucial to share the need for creativity and proper ideation activities, including finding the best ideas in our business. He was personally interested in the innovation topic as our colleagues knew, and this increased the impact. Later we decided to also get the support of the CHO (Chief Human Resource Officer) as the (financial) sponsor of our department. Having this level of support made it easier to align with other business leaders in receiving their support. Especially when we were in the process of moving ideas through our funnel to implement them, this support appeared to be crucial as at times colleagues needed to be reminded of the priority that innovation had in our company’s culture.”

Marcel’s quote reminded me of an analogy by Mukesh Gupta, director of customer advocacy at SAP India. Mukesh noted that:

"Just like every hero needs a mentor (or a side-kick) who champions the cause of the hero when no one believes in him/her, every good idea needs a champion who can add weight to the idea. [...] If we don’t give our attention to these projects, no one else will give attention to the team. Solving problems in interesting ways is a difficult task by itself, we don’t need to make it even more difficult for the team."

Set up different project owners at different stages and with a clear handover

Once you’ve selected an idea for implementation, make sure there's a clear handover of ownership. The actions needed to implement an idea will require a different type of control than the “fuzzier” activities done during ideation. Agree on responsibilities and choose one accountable sponsor who, ideally, can also decide on budget and resources. Make sure your innovation team is kept informed of progress and keep the rest of the organization updated too. 

So, there you have it: my views on innovation management. I hope you enjoyed the read and came away with some useful pointers to make your innovation management program a success. If you need more guidance or advice, we’re here to help! We'd love to chat with you and share more of our stories from innovation managers like you. Click here to  schedule a call with one of our innovation management experts. 

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What is innovation management

Defining innovation management

Innovation management refers to the systematic approach of introducing and implementing creative ideas and solutions within an organization to achieve strategic goals. It involves the entire process of nurturing innovation, from idea generation to successful implementation. Innovation is not just limited to groundbreaking inventions; it is also related to making incremental improvements, process optimization, and adopting novel approaches to problem-solving. By effectively managing innovation, companies can stay ahead of the competition, adapt to changing market conditions, and drive continuous progress.

Explanation of innovation as a strategic tool

Innovation is a vital strategic tool that empowers organizations to stay relevant and thrive in a dynamic business landscape. It enables businesses to differentiate themselves from competitors, create unique value propositions, and unlock new revenue streams. When innovation is embedded in an organization's DNA, it becomes a driving force for growth and resilience. By continually seeking new opportunities and leveraging emerging technologies, companies can proactively shape their future and influence market trends.

Innovation management is an integral part of strategic planning and can be applied at various stages of a company's development. It involves the systematic process of nurturing and implementing creative ideas to achieve strategic goals and drive the organization's success. Here are the key points to consider:

Strategic planning

Innovation management is closely intertwined with strategic planning. When crafting the company's long-term vision and goals, leaders must identify opportunities for innovation and incorporate them into the strategic plan. By aligning innovation initiatives with the overall business strategy, organizations can effectively leverage innovation to gain a competitive advantage and achieve sustainable growth.

Early-stage startups

For startups, innovation management is critical from the outset. These companies often face fierce competition and must continuously innovate to establish their presence in the market. From creating a unique value proposition to developing groundbreaking products or services, innovation management drives early-stage startups' success.

Growth and expansion

As companies grow and expand, innovation management becomes increasingly important. Scaling a business requires adapting to changing market conditions, customer needs, and technological advancements. Through effective innovation management, companies can identify new growth opportunities, diversify their offerings, and enter new markets.

Mature companies

Even well-established companies need to embrace innovation management to maintain their competitive edge and relevance. By fostering a culture of innovation and continuous improvement, mature companies can avoid complacency and drive sustained growth. They can also explore new revenue streams and optimize existing processes to remain agile in the face of disruptive changes.

Challenging times

Innovation management becomes especially valuable during challenging times, such as economic downturns or industry disruptions. During these periods, companies must be proactive in seeking innovative solutions to overcome obstacles, pivot their strategies, and emerge stronger in the recovery phase.

The role of management in fostering innovation

Innovation management plays a pivotal role in fostering innovation within an organization. Leaders must create an environment that encourages creativity, risk-taking, and collaboration as part of what innovation management is. They set the vision and establish clear goals for innovation initiatives, aligning them with the company's overall strategy. Moreover, management must actively support and allocate resources for innovation projects, providing teams with the freedom to explore ideas and experiment. By promoting a culture that embraces innovation, leadership can inspire employees to contribute their best ideas and propel the organization forward. This exemplifies the essence of what innovation management is, driving growth and success through a systematic approach to nurturing and implementing creative ideas.

What innovation projects are

Innovation projects can take various forms across different companies, each tailored to address specific needs and opportunities. For a manufacturing company, an innovation project could involve implementing automation and robotics in the production line to increase efficiency and reduce costs. In the healthcare industry, a project could focus on developing a mobile health app to enhance patient engagement and remote monitoring. For a retail company, creating an augmented reality-based shopping experience can revolutionize customer engagement and drive sales. In the financial sector, integrating blockchain technology for secure and efficient transactions could be a transformative innovation. Furthermore, service-based companies can invest in AI-driven chatbots to provide personalized customer support. These innovation projects not only differentiate companies from their competitors but also improve operational processes, create new revenue streams, and strengthen their position in the market.

he pillars of successful innovation

Creativity and idea generation.

Creativity forms the bedrock of successful innovation management. It involves generating and exploring a wide range of ideas, regardless of how unconventional they may seem. Encouraging employees to think outside the box, brainstorm freely, and share diverse perspectives can lead to breakthrough concepts. To foster creativity, organizations can implement idea generation workshops, hackathons, and cross-functional collaborations, enabling employees to combine their expertise to create unique and impactful solutions.

Efficient resource allocation and risk management

Innovation requires the allocation of resources such as time, budget, and talent. It is essential to strike a balance between investing in new ventures and maintaining core business operations. Effective resource allocation involves prioritizing innovation projects based on their potential impact, feasibility, and alignment with strategic objectives. Additionally, innovation management includes identifying and mitigating risks associated with new ideas, ensuring that calculated risks are taken while minimizing potential downsides.

Nurturing a culture of innovation and continuous improvement

Building a culture of innovation is essential to sustain long-term success. A culture that celebrates experimentation, learning from failures, and embracing change fosters an environment where innovation can thrive. Encouraging open communication and feedback channels empowers employees to share their ideas and contribute to the innovation process. Furthermore, fostering a mindset of continuous improvement ensures that innovation remains an ongoing and evolving process, leading to sustained growth and adaptability.

Benefits of implementing innovation management

Driving business growth and competitive advantage.

Implementing innovation management practices enables companies to identify untapped market opportunities, develop cutting-edge products, and expand their market share. By staying ahead of competitors, organizations can secure a competitive advantage, attract new customers, and solidify their position in the industry. A proactive approach to innovation ensures that companies are well-positioned to respond to changing customer preferences and market demands, driving business growth and success.

Increased customer satisfaction and loyalty

Innovation management empowers companies to address customer needs and pain points effectively. By continuously improving products and services, organizations can enhance customer satisfaction and loyalty. Satisfied customers are more likely to become brand advocates and repeat buyers, contributing to increased revenue and sustainable business relationships. Through customer-centric innovation, companies can build lasting connections with their target audience and build a strong brand reputation.

Attracting and retaining top talent

Talented individuals are drawn to innovative companies that offer exciting challenges and opportunities for professional growth. An organization that prioritizes innovation and values creativity becomes a magnet for top talent in the industry. By fostering a culture of innovation and recognizing employee contributions, companies can attract, retain, and motivate skilled professionals who are eager to make a difference and drive the company's success.

Sustainable business development

Innovation management is not limited to short-term gains; it also paves the way for sustainable business development. By proactively addressing environmental and social challenges through innovation, companies can implement eco-friendly practices, reduce waste, and positively impact their communities. Sustainable innovation aligns with the principles of corporate social responsibility, making companies more attractive to environmentally conscious customers and investors.

In conclusion, innovation management is a strategic approach that unlocks the full potential of an organization's creative capabilities. By embracing innovation as a core value and implementing effective management practices, companies can drive business growth, gain a competitive edge, and create a lasting positive impact on their customers and the world at large.

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The Innovation Process: 10-Step Process to Successful Innovation

Published: 06 December, 2023

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Table of Contents

In the modern business environment, where change is the only constant, embracing innovation is not just a choice; it’s a strategic imperative. As businesses navigate through the intricacies of the digital era, the importance of a well-defined innovation process becomes not only evident but indispensable for staying ahead of the curve. Innovation is not a one-time event but a continuous journey that reshapes organizations, propelling them toward growth, adaptability, and sustainability.

What is Innovation?

Innovation involves the methodical approach to creating and introducing groundbreaking products and services to gain acceptance from customers. It’s a term often used but not always clearly understood and marks the inception of transformation. At its core, innovation is the process of utilizing digital technologies and creative thinking to fundamentally change how organizations operate, enhance value creation , and interact with their stakeholders. It’s not just about adopting new technologies; it’s a strategic shift in the business and operating models of an organization.

Why Innovation is Important for Business?

Innovation is crucial for business success as it drives growth, enhances competitiveness, and ensures long-term sustainability. By constantly adapting to changing market dynamics, technology, and customer needs, innovation enables businesses to stay relevant, differentiate themselves, and seize new opportunities. Embracing innovation fosters creativity, efficiency, and resilience, positioning a business to navigate challenges and emerge as a leader in its industry.

What is Innovation Process

The innovation process entails a series of strategic steps characterized by the adoption of creative and novel methods, aimed at attaining predefined organizational objectives within a designated timeframe. The innovation process definition is an efficient and well-managed systematic series of strategic steps tailored and characterized by the application of creative and novel approaches to align with a company’s structure and aspirations in innovation and achieve specific organizational goals within a defined timeline. It’s about introducing groundbreaking methods, and diverse sources of supply, exploring new markets, creating innovative goods, and reshaping organizational structures within an industry. The allure of the innovation process lies in its transformative power, turning a mere idea into a tangible and successful reality.

A successful innovation process is the key to staying ahead in the dynamic landscape of business. It involves translating knowledge into tangible products, solutions, or services that resonate in the market. Companies leading in innovation have a distinct edge, often driven by a robust process that efficiently transforms ideas into impactful concepts.

Establishing a reliable innovation process demands a strategic approach, and The UNITE Innovation Approach is a valuable resource in this journey. It not only structures the innovation process but also facilitates the creation of meaningful networks and maximizes the potential of intellectual property.

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Why is the innovation process important.

The innovation process is not a one-time project but an ongoing journey. Organizations often go for major transformative changes only every 8.5 years on average. Hence, as you embark on the innovation process, it’s crucial to make business plans for the day after tomorrow. This holistic approach, which we refer to as the Digital Leadership approach, ensures flexibility in initiating, pausing, or scaling projects seamlessly.

1) Strategic Problem Solving:

The innovation process serves as a powerful tool for strategic problem-solving by identifying and addressing challenges within the business ecosystem. Companies, guided by a customer-centric approach and a deep understanding of customers’ jobs to be done , can proactively enhance their operations. This results in improved customer satisfaction as the products or services align more closely with the specific needs and desires of the customers. The outcome is not just increased sales but sustained revenue growth, as the organization consistently meets and exceeds the expectations tied to the fundamental “jobs” that customers are trying to accomplish.

In the intricate landscape of the innovation process , the Business Model Innovation (BMI) canvas plays a pivotal role in the problem-solving step. As organizations navigate challenges and seek solutions.

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The UNITE Business Model Innovation Patterns

This process begins with the identification of core problems, utilizing the canvas’s capabilities for a comprehensive examination of existing digital business models .

2) Global Market Maximization:

In an era of increasing globalization, the innovation process becomes instrumental in helping businesses not only tap into new markets but also identify opportunities and leverage emerging trends worldwide. Adopting a tailored innovation strategy allows companies to not just adapt their products and services but proactively identify and capitalize on diverse cultural and market demands. This approach not only fosters international success but positions the organization as a proactive player in identifying and seizing opportunities on a global scale.

3) Agility Through Change:

Change is an inevitable constant in the business landscape. A robust innovation process empowers businesses to not only adapt to change but thrive in dynamic environments. By embracing change through innovation, organizations enhance their resilience and agility, ensuring they remain adaptable in the face of evolving market trends.

4) Optimized Workplace Dynamics:

The innovation process plays a pivotal role in navigating the evolving dynamics of the workplace. As demographics shift and employee expectations change, innovation ensures that businesses can create adaptive work environments, attracting and retaining top talent while fostering a culture of continuous improvement.

5) Customer-Centric Evolution:

Understanding and responding to customer preferences are central to a business’s success. The innovation process allows companies to develop customer-centric solutions, aligning products and services with evolving preferences. This customer-focused approach not only satisfies current needs but anticipates future demands, ensuring sustained relevance.

6) Competitive Edge Retention:

In a fiercely competitive business landscape, retaining a competitive edge requires more than routine operations. A well-crafted innovation process enables companies to stand out by developing unique digital business models, making strategic moves, and continuously evolving to meet and exceed customer expectations.

The Business Model Canvas (BMC) plays a pivotal role in the innovation process, offering a dynamic framework for visualizing and communicating key aspects of a business model. Its simplicity fosters collaboration, aids in identifying innovation opportunities, and ensures organizations adapt efficiently to evolving landscapes, contributing to successful and competitive innovation.

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The UNITE Business Model Canvas

7) future-proofing strategies:.

Innovation is an investment in the future. Companies with a robust innovation process are better equipped to navigate uncertainties, foresee industry trends, and proactively shape their destinies. This forward-looking approach ensures long-term sustainability and positions organizations as leaders in their respective fields.

8) Transformation of Ideas into Value: 

At its core, the innovation process is the alchemy that turns raw ideas into tangible value, crafting a compelling value proposition. It’s the systematic journey from concept to reality, ensuring that creative sparks translate into products, services, or solutions that resonate in the market.

9) Enhanced Efficiency and Effectiveness: 

An innovation process isn’t just about introducing something new; it’s about doing things better. It streamlines operations, enhances efficiency, and ensures that every facet of the organization is optimized for success.

10) Cultivation of a Progressive Innovation Culture:

Embracing innovation fosters a culture of progress within an organization. Innovation culture encourages a mindset of continuous improvement, where employees are empowered to contribute ideas, experiment with new approaches, and actively participate in the organization’s growth journey.

11) Future-Proofing: 

Innovation isn’t just about the present; it’s an investment in the future. Organizations with a well-established innovation process are better positioned to navigate uncertainties, foresee trends, and proactively shape their destiny.

Steps of the Innovation Process

Understanding the steps of the innovation process is key to successful implementation. Let’s break down the process into its essential components:

Step 1: Innovative Idea Generation 

Embarking on the innovation journey initiates a quest for innovative potential through robust idea generation . This pivotal step involves actively seeking out new and groundbreaking ideas that have the potential to redefine products, services, or processes. The subsequent evaluation phase separates the wheat from the chaff, identifying ideas with the highest innovation quotient.

Idea Generation Techniques:

• Creativity Techniques:

Employing structured creativity techniques stimulates ideation. These methods, ranging from brainstorming sessions to mind mapping, encourage teams to think outside the box and explore unconventional possibilities.

• Design Thinking:

Rooted in empathy and a human-centric approach, design thinking is a powerful technique for innovative idea generation . It involves understanding user needs, ideating solutions, and prototyping to address real-world challenges.

Creativity techniques and design thinking are employed to stimulate ideation, ensuring ideas align with customer needs and address unmet requirements. JTBD enhances the customer-centric perspective, increasing the likelihood of generating transformative ideas that resonate authentically with evolving customer expectations.

The UNITE Jobs to Be Done (JTBD) Customer’s Job Statement plays a pivotal role. This framework emphasizes understanding the fundamental business goals and motivations of customers, guiding the generation of innovative ideas that address specific needs and challenges. By crafting precise Job Statements through UNITE, the process gains clarity on customer requirements, enabling a targeted approach to ideation.

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The UNITE Jobs-To-Be-Done Statement & Map

Tracking these innovative potentials varies in approach. Some methods involve targeted searches, delving into specific fields and aligning with the overall innovation strategy . Platforms such as idea generation contests, LEAD user workshops, or creativity workshops serve as channels for uncovering these hidden gems.

Reviewing and evaluating ideas regularly is crucial to ensure swift progress and provide immediate feedback to ideators. This practice prevents ideas from languishing without acknowledgement, fostering a supportive environment for ongoing participation in your innovation program. Lack of feedback can demotivate contributors and discourage their involvement in the innovation process. This emphasizes the importance of actively managing and nurturing the ideas generated to maintain a dynamic and participative innovation program.

Step 2: Advocacy Screening and Experimentation

The second crucial phase in the innovation process is advocacy screening and experimentation. Following the inception of innovative ideas, this stage involves an in-depth analysis to gather comprehensive information for evaluating feasibility. The goal is to scrutinize the potential challenges and benefits of a business idea, enabling informed decisions about its future. This phase plays a pivotal role in shaping the destiny of an innovation by subjecting it to rigorous scrutiny. Thorough analysis and experimentation provide valuable insights, identifying potential roadblocks and identifing opportunities for refinement.

One of the critical components is the feasibility analysis, assessing the practicality of the proposed innovation within the existing operational framework. Evaluating risks and benefits helps understand the innovation’s potential impact, and establishing a decision-making framework guides future development. Aligning the innovation with the organizational culture ensures seamless integration. Crucially, this phase involves meticulously analysing customer requirements, and validating the innovation against real-world demands.

Implementing best practices for business growth, such as fostering open communication and encouraging cross-functional collaboration, contributes to building a resilient innovation culture . Advocacy screening and experimentation propel the innovation process from ideation to strategic evaluation, ensuring concepts are grounded in practicality and market relevance. Navigating this phase sets the stage for visionary innovations with a solid foundation for success.

Step 3: Develop a Solution

Moving into the third phase of the innovation process , the focus now shifts to crafting a viable and deployable solution poised for market entry. This stage involves the meticulous development of solutions, including the construction of prototypes and the execution of various tests. Beyond conceptual and laboratory assessments, real-world market tests are conducted to garner firsthand insights and comprehensive feedback.

Throughout this phase, the emphasis is on refining the solution, addressing any identified shortcomings, and ensuring its readiness for implementation. Prototypes undergo scrutiny, and iterative testing ensures that the final product aligns seamlessly with customer expectations. The integration of market tests in authentic conditions serves as a crucial step in validating the solution’s practicality and market appeal.

Upon reaching maturity, the solution proceeds to the next pivotal stage: commercialization and marketing. Simultaneously, marketing and implementation strategies are further honed and developed to maximize impact. This synchronized approach ensures a smooth transition from solution development to market deployment, laying the groundwork for successful implementation and customer adoption. The third step in the innovation process is a critical juncture, where ideas evolve into tangible solutions ready to make a meaningful impact in the market.

Step 4: Commercialization and Marketing

Entering the crucial phase of commercialization and marketing marks a pivotal step in the innovation process. This stage is dedicated to creating market value for the developed idea, product, or service by focusing on its real-world impact. A key element within this step involves the meticulous establishment of specifications for the given idea, ensuring clarity and alignment with market needs.

Commercialization is a multifaceted endeavour that extends beyond the conceptual realm. It involves the physical manifestation of the product, making it available to potential customers through mass production, procurement, and logistics—all guided by well-defined concepts. Successful commercialization hinges on effective strategies that navigate the intricate landscape of consumer demand, competition, and market dynamics.

As the innovation transitions from organizational development to the commercial realm, the fourth step ensures a seamless integration of the product into the market, setting the stage for widespread adoption and success.

Marketing plays a central role in this phase, encompassing activities that drive awareness, engagement, and adoption. Crafting compelling narratives, establishing brand presence, and strategically positioning the product are integral components of a robust marketing strategy. The goal is to not only introduce the innovation to the market but also to generate enthusiasm, trust, and a compelling value proposit i on.

The value proposition canvas plays a crucial role. It helps in clearly defining and communicating the unique value the innovation brings to customers. By identifying customer pains and gains, the value proposition canvas guides marketing efforts, ensuring that the product’s benefits align with customer needs.

Integrating Technology in the Innovation Development Process

Integrating technology into the innovation development process is crucial for leveraging digital tools, data-driven insights, and collaborative platforms. Here’s a guide on how to effectively integrate technology into your innovation development process:

• Implement dedicated innovation management software to streamline idea generation, evaluation, and tracking.
• Choose platforms that support collaboration, transparency, and real-time feedback.
• Utilize crowdsourcing platforms to tap into external ideas and expertise.
• Engage customers, partners, and even the general public to contribute innovative solutions.
• Leverage big data and analytics to gather insights from customer behaviour, market trends, and internal operations.
• Analyze data to identify emerging opportunities, customer needs, and areas for improvement.
• Integrate AI and ML algorithms to analyze large datasets and predict future trends.
• Use AI for intelligent decision-making and to identify patterns that may lead to innovative solutions.
• Apply VR and AR technologies for immersive experiences in product prototyping and design.
• Facilitate remote collaboration through virtual environments for distributed teams.
• Implement collaborative tools for seamless communication and information sharing among team members.
• Use project management platforms, messaging apps, and virtual meeting tools to enhance teamwork.
• Explore blockchain for secure and transparent management of intellectual property, patents, and innovation-related transactions.
• Ensure the integrity and traceability of innovative ideas throughout the development process.
• Adopt rapid prototyping tools that allow for quick and cost-effective testing of concepts.
• 3D printing, virtual prototyping, and simulation tools can accelerate the development cycle.
• Incorporate IoT devices and sensors to gather real-time data from products and services.
• Use IoT data to enhance user experiences, improve functionality, and identify areas for innovation.
• Utilize cloud platforms for scalable and flexible storage of innovation-related data.
• Enable remote access to collaborative documents, project files, and development resources.
• Implement digital twin technology to create virtual replicas of physical products or processes.
• Monitor and simulate real-world conditions to optimize innovation outcomes.
• Prioritize cybersecurity to protect sensitive innovation-related data.
• Implement robust security measures to safeguard intellectual property and maintain trust.
• Integrate e-learning and continuous learning platforms to upskill teams in emerging technologies and innovation methodologies.
• Foster a culture of ongoing education and adaptability.

Innovation Process vs Innovation Strategy

It’s essential to differentiate between the innovation process and innovation strategy . While the innovation process focuses on the execution of innovative ideas and initiatives, the innovation strategy outlines the overarching business plan for achieving innovation goals. 

Relationship between Innovation Process and Innovation Strategy: 

• The innovation process is a component of the broader innovation strategy.
• The strategy sets the overall business goals , priorities, and resource allocation for innovation.
• The process is the execution arm, detailing how innovation will be managed and implemented.

Risks of Innovation Process

Innovation, while heralded for its numerous benefits, is not without its inherent risks and dangers. Here are some key challenges associated with the innovation process:

1) Technological Failure:

• The primary risk in the innovation process revolves around the uncertainty of a concept or product’s success upon market launch. To mitigate this risk, businesses often conduct smaller-scale tests and employ efficient testing methods, such as launching prototypes. Post-trial adjustments can then be made to avoid significant losses during mass production.

2) Financial Strain:

• Many innovations face the challenge of draining a company’s resources, as returns on investment often materialize over the long term rather than immediately. This financial strain may lead to the abandonment of ideas or products deemed non-profitable. Evaluating anticipated profits and aligning the innovation with the company’s long-term objectives becomes crucial.

3) Market Failure:

• Innovations, especially those involving new technologies or products (“Radical Innovation”), must align with customer tastes, needs, and preferences to succeed in the market. Thorough market research is essential before significant investments in creation and manufacturing to gauge product viability and potential demand.

4) Capacity Lack of Implementation:

• Startups, in particular, may face challenges launching technologies due to financial and structural limitations. Seeking strategic partnerships can help overcome these hurdles by leveraging external capabilities. Ensuring alignment between partners and the innovation mission is crucial to prevent conflicts of interest.

5) Organizational Risks:

• Risks emerge concerning the structure and operations of the company once the innovation is launched. There is a danger of allocating all resources to innovation at the expense of daily operations. Effective planning and resource distribution by top management is essential to maintain a balance.

6) Unpredictable Risks:

• Unforeseen risks influenced by external factors beyond a company’s control, such as policy changes or political instability, can impact the effectiveness of the innovation process . Having an emergency plan in place is crucial to navigate and mitigate the impact of such unpredictable events.

Frequently Asked Questions

1) how to implement innovation in an organization.

To implement innovation in an organization, start with strong leadership commitment and foster a culture that values creativity and collaboration. Clearly define innovation objectives, allocate dedicated resources, and establish platforms for idea generation and feedback. Encourage cross-functional collaboration, pilot programs for testing, and recognize and reward innovative contributions. Provide training on innovative thinking and continuously refine the innovation process based on results and feedback. Maintain open communication about the organization’s commitment to innovation. This comprehensive approach ensures a dynamic and supportive environment for generating, testing, and implementing innovative ideas.

2) What are the Four Steps of the Innovation Process?

• Idea Generation : Initiating the process by actively seeking new and innovative ideas. This stage often involves brainstorming, research, and creativity techniques to identify opportunities.
• Idea Screening and Evaluation : Rigorously assessing and screening the generated ideas to filter out impractical or less promising ones. This step involves evaluating the feasibility, potential benefits, and alignment with strategic goals.
• Development of Solutions : Transforming selected ideas into tangible solutions. This phase includes prototyping, testing, and refining the proposed solutions to ensure they are viable and effective.
• Commercialization and Implementation : Bringing the developed solutions to the market and implementing them on a larger scale. This step involves strategies for marketing, production, and distribution, ensuring successful integration into the market or organization.

These four steps provide a structured approach to navigating the innovation process , from idea generation to the practical implementation of innovative solutions.

In conclusion, the innovation process is not a linear journey but a dynamic and iterative one. At Digital Leadership, we believe in a strategic approach that considers every aspect, from defining business intentions to translating visions into actionable plans. As you navigate the innovation landscape, remember that innovation is not just a project; it’s a continuous process that defines the future of successful businesses. Embrace the Digital Leadership approach, and let innovation drive sustainable change in your organization.

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What is innovation?

When you think of innovation, what springs to mind? Maybe it’s a flashy new gadget—but don’t be mistaken. There’s much more to the world of innovation, which extends far beyond new products and things you’ll find on a store shelf.

Get to know and directly engage with senior McKinsey experts on innovation.

Marc de Jong is a senior partner in McKinsey’s Amsterdam office, Laura Furstenthal is a senior partner in the Bay Area office, and Erik Roth is a senior partner in the Stamford office.

If products alone aren’t the full story, what is innovation? In a business context, innovation is the ability to conceive, develop, deliver, and scale new products, services, processes, and business models for customers.

Successful innovation delivers net new growth that is substantial. As McKinsey senior partner Laura Furstenthal  notes in an episode of the Inside the Strategy Room podcast , “However you measure it, innovation has to increase value and drive growth.”

As important as innovation is, getting it right can be challenging. Over 80 percent of executives surveyed  say that innovation is among their top three priorities, yet less than 10 percent report being satisfied with their organizations’ innovation performance. Many established companies are better operators than innovators , producing few new and creative game changers. Most succeed by optimizing existing core businesses.

Why is innovation important in business?

Some companies do succeed at innovation. Our research considered how proficient 183 companies were at innovation, and compared that assessment against a proprietary database of economic profit  (the total profit minus the cost of capital). We found that companies that harness the essentials of innovation see a substantial performance edge that separates them from others—with evidence that mastering innovation can generate economic profit that is 2.4 times higher than that of other players .

Learn more about our Strategy & Corporate Finance  practice.

How can leaders decide what innovations to prioritize?

Successful innovation has historically occurred at the intersection of several elements, which can guide prioritization efforts. The three most important elements are the who, the what, and the how :

• An unmet customer need (the ‘who’): Who is the customer and what problem do they need to solve? Are macrotrends such as automation driving changes in customer needs?
• A solution (the ‘what’): Is the solution compelling and can it be executed?
• A business model that allows for the solution to be monetized (the ‘how’): How will the solution create value? What is the business model?

Successful innovation requires answers to each of these questions.

An example from inventor and businessman Thomas Edison helps illustrate the concept. “In every case, he did not just invent the what, he also invented a how,” says Furstenthal in a conversation on innovation . “In the case of the light bulb, he created the filament and the vacuum tube that allowed it to turn on and off, and he developed the production process that enabled mass production.”

Introducing McKinsey Explainers : Direct answers to complex questions

How do organizations become better innovators.

McKinsey conducted research into the attributes and behaviors behind superior innovation performance , which were validated in action at hundreds of companies. This research yielded eight critical elements  for organizations to master:

• Aspire: Do you regard innovation-led growth as critical, and have you put in place cascaded targets that reflect this?
• Choose: Do you invest in a coherent, time- and risk-balanced portfolio of initiatives, and do you devote sufficient resources to it?
• Discover: Are your business, market, and technology R&D efforts actionable and capable of being translated into winning value propositions?
• Evolve: Do you create new business models that provide defensible, robust, and scalable profit sources?
• Accelerate: Do you develop and launch innovations quickly and effectively?
• Scale: Do you launch innovations at the right scale in the relevant markets and segments?
• Extend: Do you create and capitalize on external networks?
• Mobilize: Are your people motivated, rewarded, and organized to innovate repeatedly?

Of these eight essentials, two merit particular attention : aspire and choose . Without these two elements, efforts may be too scattershot to make a lasting difference. It’s particularly crucial to ensure that leaders are setting bold aspirations and making tough choices when it comes to resource allocation and portfolio moves. To do so successfully, many leaders will need to shift their mindsets or management approaches.

What are examples of successful innovators?

Real-world examples of successful innovation, related to some of the eight essentials listed , can highlight the benefits of pursuing innovation systematically :

• Mercedes-Benz Group invested extensively in digitizing its product development system. That allowed the company to shorten its innovation cycles significantly , and its capabilities for personalizing cars have improved, even as assembly efficiency rose by 25 percent.
• Gavi, a public–private partnership founded to save children’s lives and protect their health by broadening access to immunization, used nonfinancial targets to help drive its innovation efforts —and this helped the organization broaden its aspiration for impact in a way that was bold, specific, measurable, and time bound.
• Lantmännen, a large Nordic agricultural cooperative, faced flat organic growth. Leadership created a vision and strategic plan  connected to financial targets cascaded down to business units and product groups. Doing so allowed the organization to move from 4 percent annual growth to 13 percent, on the back of successfully launching several new brands.
• The information services organization RELX Group brought discipline to choosing its innovation portfolio  by running ten to 15 experiments in each customer segment in its pipeline every year. It selects one or two of the most successful ideas from the portfolio to continue.
• International insurance company Discovery Group mobilized the organization around innovation  by creating incentives for a thousand of the company’s leaders using semiannual divisional scorecards. Innovation isn’t a choice; it’s a requirement and a part of the organization’s culture.

These examples aren’t necessarily what you may think of when you imagine disruptive innovation—which calls to mind moves that shake up an entire industry, and might be more associated with top tech trends  such as the Bio Revolution . Yet these examples show how committing to innovation can make a sizable difference.

How can my organization improve the volume and quality of new ideas?

Steps to help aspiring innovators  get started include the following:

• Hold collision sessions: Cross-functional groups gather in a structured process to think through the intersection of unmet customer needs, technology trends, and business models, bringing creativity and specificity to the process of idea generation. Then, a venture panel considers these ideas and iterates on them, prioritizing what to do.
• Challenge orthodoxies: Participants gather and describe beliefs that are common but that prevent the organization from innovating for customers. Examples of these orthodoxies include statements such as “budgets are limited” or “we don’t have the digital capabilities to pull it off.” Once the orthodoxies are laid out, teams brainstorm after being prompted to consider if the opposite of the statement were true.
• Make analogies to other industries: A team might create a list of companies with unique value propositions. Then, they systematically apply these value propositions to their ideas to see if the analogy can create new sources of value or fresh opportunities.
• Apply constraints: Rather than searching for blue-sky ideas, tighten the constraints on an idea’s business or operating model and explore potential new solutions. What if you served only one type of customer? What if the only channel you could access was online?

In the words of chemist Linus Pauling, “The way to get to good ideas is to get lots of ideas and throw the bad ones away.”

What is an innovation portfolio?

An innovation portfolio  is a thoughtfully curated bundle of potentially innovative initiatives, with clear aspirations and required resources defined for each. Managing the portfolio this way helps find new opportunities and determine the appropriate number and mix of initiatives, including the following:

• confirming the total value of the portfolio needed
• evaluating existing innovation projects based on incremental value delivered, risk, and alignment with strategic priorities
• getting comfortable saying “no” to stop projects that are dilutive, and resisting the siren song of incremental initiatives that are unlikely to pay for themselves
• reallocating resources—including competencies and skills—to new initiatives or to current ones that additional support can accelerate or amplify
• identifying portfolio gaps and defining new initiatives to close them

How to measure innovation?

One way to measure innovation is to look at innovation-driven net new growth, which we call the “green box.”  This phrase refers to how you quantify the growth in revenue or earnings that an innovation needs to provide within a defined timeframe. This concept can help clarify aspirations and influence choices on the innovation journey.

While many imagine that innovation is solely about creativity and generating ideas, at its core, innovation is a matter of resource allocation . To put it another way: it’s one thing to frame innovation as a catalyst for growth, and another to act upon it by refocusing people, assets, and management attention on the organization’s best ideas.

The green box can help to solidify a tangible commitment  by defining the value that a company creates from breakthrough and incremental innovation, on a defined timeline (say, five years), with quantifiable metrics such as net new revenue or earnings growth. Crucially, the green box looks at growth from innovation alone, setting aside other possible sources such as market momentum, M&A, and so forth. And once defined, the growth aspiration can be cascaded into a set of objectives and metrics that the company’s various operating units can incorporate into its individual innovation portfolios.

It’s useful to note that some organizations may find that measures not solely financial in nature are more appropriate or relevant. For instance, metrics such as the number of subscribers or patients—or customer satisfaction—can resonate. What’s critical is selecting a metric that is a proxy for value creation. A large US healthcare payer , for example, looked to spur innovation that would improve patient satisfaction and the quality of care.

Separate from the concept of the green box, two simple metrics  can also offer surprising insight about innovation vis-à-vis the effectiveness of an organization’s R&D spending. Both of these lend themselves to benchmarking, since they can be gauged from the outside in, and they offer insight at the level of a company’s full innovation portfolio. The two R&D conversion metrics are as follows:

• R&D-to-product conversion: This metric is calculated by looking at the ratio of R&D spending (as a portion of sales) to sales from new products. It can show how well your R&D dollars convert to actual sales of new products—and it might reveal that spending more doesn’t necessarily translate into stronger performance.
• New-products-to-margin conversion: This metric considers the ratio of gross margin percentage to sales from new products. It can indicate how new-product sales contribute to lifting margins.

While no metric is perfect, these may offer perspective that keeps the focus squarely on returns from innovation and the value it creates—often more meaningful than looking inward at measures of activity, such as the number of patents secured.

How do you create a high-performing innovation team?

Innovation is a team sport. Experience working with strong innovators and start-ups has helped identify ten traits of successful innovation teams . Those fall into four big categories: vision , or the ability to spot opportunities and inspire others to go after them; collaboration , which relates to fostering effective teamwork and change management (for instance, by telling a good innovation story ); learning or absorbing new ideas; and execution , with traits that facilitate snappy decision making even when uncertainty arises.

Being strategic about the composition of an innovation team can help minimize failures and bring discipline to the process.

What innovation advice can help business leaders?

One broad piece of advice centers on creating a culture that accounts for the human side of innovation . When people worry about failure, criticism, or the career impact of a wrong move, it can keep them from embracing innovation. In a recent poll, 85 percent of executives say fear holds back their organization’s innovation efforts often or always—but there are ways to overcome these barriers .

Additionally, the Committed Innovator podcast and related articles share perspectives from leading experts who have helped their organizations tackle inertia and unlock bold strategic moves. If you are looking for words of wisdom, their insights can help spark inspiration to innovate:

• Naomi Kelman, CEO, Willow . “Creating a safe environment for innovation is really what you need to do to get the greatness out of the people who work with you, which is ultimately what drives growth.”
• Safi Bahcall, author, Loonshots . “Most of the important breakthroughs failed many times before they succeeded. That is where ‘fail fast’ goes wrong. Most companies are too impatient.”
• Amy Brooks, chief innovation officer, National Basketball Association . “You can use data or examples to convince people about what is working in the market or what other industries are doing. We like to share best practices within our own leagues and within sports, but we also pay attention to every other industry that sells to consumers.”
• Tanya Baker, global leader, Goldman Sachs Accelerate . “If someone knowledgeable thinks what you are doing is a bad idea, make sure they have a seat at the table. Put them on your board; make them one of your advisers so you don’t have any blind spots.”
• Neal Gutterson, former chief technology officer, Corteva . “[A] key skill is being able to hold two divergent thoughts and approaches in your brain and in your team at the same time. The great companies will be ambidextrous innovators, able to disrupt themselves in the future while serving the core [business] today.”
• Anjali Sud, CEO, Vimeo . “What keeps me up at night is execution and, within that, focus. Because when you are in a market like ours, at a time like now, the opportunity is huge. We are this nimble, fast-growing, fast-moving company, and everywhere I look I see opportunity. But am I providing enough focus for my teams so that we can truly be great at something? You don’t want to miss a big boat, and it’s hard sometimes to say no to valid, exciting ideas that could be transformative.”

For more in-depth exploration of these topics, see McKinsey’s insights on Strategy & Corporate Finance . Learn more about McKinsey’s Growth & Innovation  work—and check out innovation-related job opportunities if you’re interested in working at McKinsey.

Articles referenced include:

• “ Fear factor: Overcoming human barriers to innovation ,” June 3, 2022, Laura Furstenthal , Alex Morris, and Erik Roth
• “ Innovation—the launchpad out of crisis ,” September 15, 2021, Laura Furstenthal  and Erik Roth
• “ The innovation commitment ,” October 24, 2019, Daniel Cohen, Brian Quinn, and Erik Roth
• “ Fielding high-performing innovation teams ,” January 17, 2019, Matt Banholzer , Fabian Metzeler, and Erik Roth
• “ Taking the measure of innovation ,” April 20, 2018, Guttorm Aase, Erik Roth , and Sri Swaminathan
• “ The eight essentials of innovation ,” April 1, 2015, Marc de Jong , Nathan Marston, and Erik Roth

Want to know more about innovation?

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Fear factor: Overcoming human barriers to innovation

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