Innovation Management: Realizing The Value Of Innovation
In a world of constantly evolving customer expectations, heightened and disruptive competition, more restrictive regulatory requirements, and Wall Street’s unrelenting demand for earnings growth, organizations of all types have acknowledged the importance of innovation to their success. Realizing the benefits of innovation,however, requires not only “talking” but “walking the talk.” The “walk” is a systematic approach to the continuous development and implementation of value-adding ideas to increase competitive advantage. This systematic approach, or “Innovation Management,” involves the establishment of a cross-enterprise model, championed by senior executive leadership. To help jumpstart the design of yourinstitution’s unique Innovation Management approach, this article provides a high-level view of the “what, how, and who” of creating shareholder value consistently.
About the Author
Courtney Wood Courtney Wood is a Director in TCS’ North American Banking & Financial Services Consulting Practice, leading the Business Transformation and Innovation Management solutions groups. Courtney has spent thebulk of her 25-year career in tier one consulting firms providing business transformation, process improvement, innovation, and new venture development services. Prior to consulting, Courtney earned an M.B.A. from the Columbia Business School and a B.A. in Economics from DePauw University; as well as worked in the areas of commercial lending and investment banking.
Table of Contents
1.What is Innovation Management? 2. How is Innovation Managed? 3. Who Contributes to and Manages Innovation? 4. Conclusion 4 4 9 12
What is Innovation Management?
These days, given the increasing velocity of change and the expanding number of change drivers (e.g., customer expectations, technology, regulation, emerging market growth, political instability, natural resource availability,and environmental health), you cannot go far without the topic of innovation being raised. Branding agencies, marketers, corporations from all industries, the public sector, and academia all bandy the term around, talking about how innovation is essential to the success and sustainability of their institutions. But what does “innovation” really mean? And, more importantly, how is the value ofinnovation realized? First, innovation is not the same as creativity. Creativity is the process by which one identifies / invents something new or renews something that already exists. Innovation is the process by which the value of the creation or idea is realized. For purposes of this article, innovation spans “ideation” to “value realization”; and Innovation Management is the “cultivation of anenvironment where lightning can strike twice.”(1) While realizing the value of an idea, let alone coming up with a continuous pipeline of ideas, is not easy, it is not impossible. Surmounting the challenge requires a systematic, senior executivesponsored, cross-enterprise approach that incorporates the right processes, people, operating model, tools, and culture.
How is Innovation Managed?Innovation Management is a “value ring,” i.e., a continuous cycle of strategy setting, ideation, selection, implementation, and value realization.
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Innovation Strategy andSuccess Measures Definition
In a world of having to do more with less and where time is of the essence, innovating for the sake of innovating is an unnecessary distraction and waste of valuable resources. Therefore, the first phase in the Innovation Management process is “starting with the end in mind”. The definition and declaration of the “Innovation Strategy” is the critical first step to...