Structured renewal or innovation management
Share on:
Is new really always better?
Having an idea, inventing something new - as children, we learned about the imagery of the flash of inspiration in comics with a light bulb that suddenly turns on. Innovation - a word that comes from Latin (innovare) and translates as "to renew." For a few years now, innovation has been on the radar of just about every company, and often the hypothesis - new is always better - hovers over the development and advancement of companies.
The suddenly budding light bulb can be planned, controlled and also measured. Light on for: Innovation management.
What is innovation management?
Yes, what is it actually? The term innovation management refers to the process of planning, controlling and promoting innovations in a company or organization. It involves a structured approach to transforming creative and new ideas into marketable products, services or processes. Innovation management encompasses a wide range of activities and strategies to ensure that a company remains competitive by continuously developing new and relevant solutions.
New ideas alone are not enough - the broad consensus is that innovation occurs when the idea has a market and thus a target group, and is accordingly relevant to them. A new idea that offers no added value for anyone is therefore not an innovation just because it is new.
Innovation or optimization
When researching innovation, one quickly stumbles upon improvement or optimization. The boundaries between optimization and innovation are fluid. The biggest difference is that optimization refers more to the existing and often does not involve such big changes. Innovation, on the other hand, is the classic "thinking outside the box" and discovering something new, which can then ideally even be sold.
Optimization and innovation go hand in hand and it may also be that an idea for an innovation arises during the optimization process. For companies, both are fundamentally important, because even if you don't bring innovations to the market, the world continues to turn every day. And you should keep up with that, and optimization is also an essential building block for remaining attractive on the market.
What aspects need to be considered?
Okay, that all sounds logical. But what do you have to pay attention to and how do you go about it as a company?
Here are some important aspects:
Idea generation and creativity: This is the first step in the innovation process, because without a new idea you cannot find out whether it could be an innovation. There are various methods for this, such as classic brainstorming, market research, analysis of data, customer surveys and much more. The important thing is that there should be no limits to creativity, because that's the only way to find something new.
Idea evaluation and selection: Not all ideas are equal or implementable. The next step is to evaluate the ideas and select those that have the greatest potential for success. Factors such as market demand, technical feasibility, resource availability and corporate strategy should be taken into account here.
Development and implementation: Selected ideas are transformed into concrete products, services or processes. This step involves research, development, design, prototyping and testing to ensure that the final product meets requirements.
Market introduction: Successful innovation management also includes effective introduction of the new product or service to the market. This includes marketing strategies, sales plans, and creating a competitive advantage. So a plan must be in place.
Monitoring and adaptation: Innovation management does not end with the market launch. Continuous monitoring, feedback from customers, and the ability to respond to changes in the market are critical to keeping the product or service relevant and making adjustments as necessary.
And what else is going on?
An essential part of innovation management is to create the space for it in one's own company. This means adapting the culture in a way that promotes creativity and innovation and gives employees the time they need. Flexibility, open communication, encouragement and support of employees, and also acceptance of mistakes are some of the important building blocks here.
What are the advantages and disadvantages?
Well, we have learned what innovation management is and what should basically be considered from a company's point of view. But these are some aspects and now, of course, the question arises whether it is worthwhile - what are the advantages and disadvantages?
Here's what makes the case for it:
Develop a competitive advantage: If you approach your innovation management in a targeted manner, you can develop unique products, services or processes that your competitors cannot offer. Especially with an eye on the future, new ideas that become products can shape tomorrow's market.
Adapt to change: Nothing is as constant as change, right? Market conditions are constantly changing, and this presents companies with challenges. Those who react to new trends and see the permanent development of their own company as an important task can react early to customer requirements and help shape the market.
Growth: New ideas that become products or services make it possible to grow as a company and expand the range of products and services offered to customers.
Trust and branding: Customer requirements are changing, and companies that want to meet them in the long term are clearly demonstrating the importance of these requirements. For customers, this can be important for building trust. For the company's own brand, the perception is positively influenced by this: one moves with the times or is even ahead of them.
Tomorrow's employees: Internally, too, it is important that potential does not stand still and that companies think about how they can still appear attractive as an employer tomorrow. Those who give innovation management a place and communicate this accordingly have the chance to acquire talented young employees.
What are the arguments against it?
Cost and resources: Developing new products and services requires investment in research, development, production and marketing, which requires some budget.
Time, time time: Innovation processes can be time-consuming and require patience, as new ideas have to be developed, tested and refined.
Risk: Well, it can also go down the drain. Not all innovations are successful. There is a risk that invested resources and effort will not yield the desired benefits.
Resistance to change: Employees and managers may resist changes in the company that accompany innovation. This can make it difficult to implement innovative ideas. This is also why transparent communication is so critical.
Lack of market acceptance: Even if a product is innovative, it may have difficulty being accepted in the market if it does not meet the needs of customers or lacks the right timing. This is another reason why a testing process and a structured approach is so important.
In summary, the following can be said: The success of innovation management depends on whether the advantages are used accordingly, whether the planning was approached flexibly enough and at the same time tightly enough, and whether the challenges can be overcome.
Tips - are there any?
Sure, of course there are tips - here's a probably not exhaustive list for innovation management in your company:
Create a culture of innovation.
Develop a clear innovation strategy.
Encourage diversity and difference in your team.
Focus on your customers.
Keep the risks in mind.
Open communication and transparent sharing are a must.
Invest.
Be flexible and ready to adapt.
Don't forget to measure.
Looks easier on paper than it is. But it is still important. Because we can only say it again: Nothing is more constant than change. And the world keeps on turning every single day.
Summary
Innovation management - the targeted and structured process of turning ideas into new products and services. Innovation - much more than optimization. Innovation - an opportunity and a formidable challenge.
Even if the mountain to innovation may seem unconquerable for some, it is still important and also for all those who think that their own company is not affected by it: Yes, it is, because the competition does not sleep either and even if they do, your customers do not.
Further sources on innovation management can be found here: Gabler Business Encyclopedia, Lead Innovation and Sevdesk.
More articles from us can be found in the blog.
