What is Corporate Innovation: some ideas to best implement it

There is a lot of talk about corporate innovation, and usually the term refers to everything that is new and revolutionary.

A hallmark of business innovation is the willingness to be open to new ideas, which improve and change the way we do things.

A characteristic element of the human being is that we are creatures of habit and therefore it is natural for us to be averse to change. Organizations are even more averse to change, often trying to change behavior when it's too late. Typically, the company has several alibis to justify its status quo, including: 'We have market share', 'We are too big to change', 'The change will affect the share price', or 'We are the leader'. Kodak, Blockbuster and Borders are some examples of companies resistant to change.

Ironically, the technology industry and the people who work there are among the most eager to change. Although in information technology, there are many reasons that could stifle innovation: the behavior of the supplier, the proprietary hardware, the blocking of competition, the problems that could arise if an "unsupported" technology is used.

From my experience, IT architects are often forced to implement a certain technology, even if better, less expensive and more innovative solutions are available.

Some feel they need to support old technologies and protect their intellectual property and knowledge, simply to be more confident in keeping their jobs.

The problem is "pseudo innovation". Just because someone buys a new version of the same technology doesn't mean you are innovative. It is always important to ask yourself a few simple questions when a supplier talks about an innovative product - "How will it help me reduce costs, reduce complexity and improve performance, availability and reliability?" Is it just a replacement or will it help transform my business? And finally, does the choice of product explain how you innovated?

Often, vendors of non-innovative products stifle innovation simply to maintain their bottom line by keeping customers locked into proprietary products.

In this arena, it is not the strongest who survive, but rather the people who are open to change and adapt according to their needs and the environment in which they operate.

So the key element is to always keep an open mind, always investigate for new ways to do the usual things, improving them from all points of view. If you see innovative technology and feel it will benefit you and your organization, try, try and try. Once you have faith in innovation, you can go ahead and enjoy it.

Innovation is not simply about financial benefits, but as a primary goal is to gain a competitive advantage.

What is business innovation? 

Business innovation is when companies implement new processes, ideas, services or products with the goal of increasing profits. It could mean launching new and improved products or services, making an existing process more efficient, or solving a current business problem. A business focus on brainstorming, design thinking, or setting up an innovation lab can drive business innovations. The key element of innovation is that it generates revenue for the company. 

What it is not corporate innovation

Innovation has become such a hot topic that its true meaning is often lost in the noise. While some use it as a general buzzword for simply using the latest technology or making changes for the sake of change, the defiThe definition of “innovation” is limited to changes to an organization's core business that lead to growth. 

Why is business innovation important?

Innovation offers companies four main benefits: 

1. Anticipate potential disruptions: When done right, business innovation takes stock of where the market is going due to potential disruptors or changing consumer demands. Companies use this information to make strategic changes and to inspire internal employees to be entrepreneurial. Those changes may include creating a product or service similar to what new startups are making, buying from others in the industry, or partnering with newcomers (known as a “buy, build, partner” model).
2. Greater efficiency: Much of business innovation happens by making existing business processes less costly, less time-consuming to complete, and more sustainable. These changes save time and make it easier for an organization to adapt to industry changes with agility, which protects against volatility and risk. 
3. Attraction and retention of talent: Today more than ever, employees, especially millennials and Generation Z, want to work for fast-moving, mission-driven companies that they believe have a bright future. 
4. Brand perception: Consumers are more willing to buy from companies they perceive as innovative and socially conscious. 

Ercole Palmeri