About innovation-2

Last week we saw how culture and pride can be in the way of learning, seeing things differently, accepting that there is another world out there and that things can be done differently.
I observed that in Ethiopia we have a hard time changing and trying out something new, in our personal life and in doing business as well. We prefer to continue to do things the way they have been done for years, often using old fashioned and outdated processes and materials, like in the construction industry for example and in banking. We are seeing the introduction of ATM machines only now and paying by credit card is still exceptional. A lot of business is lost this way as most tourists travel around the world these days relying on their credit card rather than taking cash or travellers cheques along with them. And while visitors may get some cash with their credit card in a few locations, this possibility is soon over once leaving Addis Ababa for the countryside. Upon leaving the country, buying souvenirs by credit card in the departure lounge of the airport is also not possible in most shops yet. This is a pity, because in most airports around the world, over 90% of sales are done this way.
We also saw that the world of business and work is changing rapidly around us and it will continue to do so in the years ahead. In order to survive and prosper in this dynamic setting, organizations, businesses and the people who work there must be willing and able to change as well. For businesses, this means continuous innovation of products as well as of production processes. Various steps are involved in a typical process of organizational innovation and they include:
Idea creation – new product or process ideas arise from spontaneous creativity, ingenuity and information processing.
Initial experimentation – new ideas are first examined in concept to establish their potential values and application.
Feasibility determination – formal studies are conducted to determine feasibility of adopting the new product or process, including costs and benefits.
Final application – the new product or service is produced and marketed or the new process is fully implemented.
Central to this view of the innovation process is the idea that any new product or process idea must offer true benefits to the organization and/or marketplace. Furthermore, the process is not complete until the point of final application has been reached. A new idea, even a great one, is not alone sufficient. The new idea must pass through the various stages of innovation to reach final application before the ultimate benefits from innovation can be realised and later spin offs.
Looking at what is happening with the production of the new Airbus 380, its innovation process is far from complete and seems to be stuck in its final stage of application. The gigantic machine even came to Addis Abeba to have its performance tested at high altitude runways. The Airbus company is facing problems in its final stage of production and marketing, losing orders in the process and facing the loss of tens of thousands of jobs to compensate for financial problems.
In any case, the pressure to survive in today’s rapidly changing world is high and companies and their managers have no option but to be innovative and to be so continuously. Among the characteristics of highly innovative organizations are the following four features:
Organizational strategy and culture support the innovation process.
Organizational structures support the innovation process.
The organization is staffed to support the innovation process.
The organization’s top management supports the innovation process.
Although this list seems straightforward and simple, it is a true management challenge to make sure that all four points are fulfilled in actual practice. In order to be innovative on a continuous basis, an organization’s strategies and cultures must be built around a commitment to innovation. In a company where innovation is expected to take place and thus where taking risks is encouraged, the organizational climate must be one that tolerates mistakes or well intentioned ideas that just don’t work out as expected.
In highly innovative companies, staffing is handled with a clear commitment to innovation. The organization’s strategies, cultures and structures support every employee and allow them to use their creative talents to the fullest. In addition, managers in highly innovative pay special attention to filling critical innovation roles. That is, they make sure that the following roles in particular are always filled with highly talented people:
Idea generators – people who are the creative source of new insights.
Information gatekeepers – people who are continuously scanning the environment for new knowledge.
Product champions – people who adopt new ideas and push for their implementation.
Project managers – people who organize and manage technical support for innovations.
Leaders – people who encourage and support others to keep up the quest for continuous innovation.
Finally, an innovative organization benefits from top-management support. Part of this responsibility involves setting a good personal example and maintaining a positive tone and giving people the feeling that it is okay to fail. In terms of management, that is innovative by itself. Remember, without making mistakes we will not learn.

(“Managing Organizational Behavior” by Schermerhorn/Hunt/Osborn)