Why does Innovation in business Die? When a company is struggling, innovations don’t seem like the road to the future. Instead, new projects usually get noticed mainly for the fact that they’re draining scarce resources, often while threatening the company’s core business to boot.
At most companies, no single high-level person is in charge of innovation, which means it’s up to business unit heads-the very people who may be most threatened by a new way of doing things-to decide which projects get funded and which get cut off. CEOs turn into brokers, trying to convince business heads to support new ventures instead of intervening themselves.
It doesn’t have to be that way. Here’s how companies can give innovations the attention they deserve and protect them from naysayers.
Make sure your company identity can handle change.
For innovative busiess ideas to have a shot at success, a company needs an overarching identity that can survive potentially disruptive innovations. If changing the entire corporate identity is too much (a tall order, admittedly) think about your business unit.
Fight it out at the top
Too often, the arguments over whether or not innovations get funding or other resources take place under the radar of the top managers. Generally, no one in senior management has responsibility for innovating, so conflicts between the core business and the innovation are ‘solved’ by lower-level managers with their own vested interests. A better way is to have the most senior people in the organization-and sometimes that means only the CEO–making the calls about which innovations get resources, and how much. One way to make sure this happens is to house promising new businesses in their own business units, even though it may be extremely frustrating to devote so much time and energy to a “business” that may be that in name only.
Judge innovations by different metrics than the core business
Those working in brand-new businesses need to be encouraged to experiment even if the other business units are being pushed to execute flawlessly. Top management should be constantly shifting resources between the innovation in business and the core business to make sure everyone gets what they need when they need it.
Q. Does your company innovate well?
Q. Does it follow these guidelines?
To have a hand full of good business ideas, you need to have hell lot of awful ideas. Compared to old media world, the cost of failure today is so much less that more number of people are ready to take risk. Even after gaining success with your business model, you should have innovative ideas for busienss of how to grow else the company usually folds. Let you good ideas adapt and bring quite different skill sets to bear on growing your business.