INSTITUTIONALIZING FOR INNOVATION
“Turnover is- Top line, Profit is- Stream line But, institutionalizing for Innovation is Industry`s life line.” Innovation is the name of the Game today. But managing innovations has become a fairly challenging task. Leadership teams must be able to manage streams of innovations. They must be able to handle existing products and services even as they create new ones. They should be able to manage both incremental and radical innovations. In the aftermath of the global financial crisis, the Western economies are under pressure as their growth has either stalled or drastically slowed down and there is growing awareness that their dominance of the global economy might be under serious threat. They increasingly see their future in the emerging markets. At the same time, major emerging economies, including China and India, are powering ahead and in the process are redefining the global economic landscape. Indian multinationals are the emphasis on innovation which they believe is the only sustainable competitive advantage in the 21st century knowledge intensive global economy. The purpose of Institutionalizing Innovation and Deployment (I.I.D.) is to select and deploy incremental and innovative improvements that measurably improve the organization’s processes and technologies. The improvements support the organization’s quality and process-performance objectives as derived from the organization’s business objectives. “NOW EVERYONE CAN INNOVATE” “EVERYONE IS INNOVATOR” “INNOVATE BY EVERYONE AT EVERYWHERE, ON EVERYTHING AND AT ANYTIME” The Institutionalizing for Innovation and Deployment process area enables the selection and deployment of improvements that can enhance the organization’s ability to meet its quality and process-performance objectives. The term “improvement,” as used in this process area, refers to all of the ideas (proven and unproven) that would change the organization’s processes and technologies to better meet the organization’s quality and process-performance objectives. Quality and process-performance objectives that this process area might address include the following: • Improved product quality (e.g., functionality, performance, durability) • Increased productivity • Decreased cycle time • Greater customer and end-user satisfaction • Shorter development or production time to change functionality or add new features, or adapt to new technologies • Reduce delivery time also on time and safe delivery by the Innovative Supply chain management • Reduce time to adapt to new technologies and business needs Achievement of these objectives depends on the successful establishment of an infrastructure that enables and encourages all people in the organization to propose potential improvements to the organization’s processes and technologies. Achievement of these objectives also depends on being able to effectively evaluate and deploy proposed improvements to the organization’s processes and technologies. All members of the organization can participate in the organization’s process- and technology-improvement activities. Their proposals are systematically gathered and addressed. Believe in your Ideas and action Follow the institutionalizing for innovation. Pilots are conducted to evaluate significant changes involving untried, high-risk, or innovative improvements before they are broadly deployed. Process and technology improvements that will be deployed across the organization are selected from process- and technology-improvement proposals based on the following criteria: • A quantitative understanding of the organization’s current quality and process performance. • The organization’s quality and process-performance objectives. • Estimates of the improvement in quality and process performance resulting from deploying the process and technology improvements. • Estimated costs of deploying process and technology improvements, and the resources and funding available for such deployment. Balancing the short term and the long term: Success in the past is often leads to complacence. But success need not be paralyzing. The most successful firms are able to capture the benefits of short-term advantage even as they build organizational capabilities for long-term strategic renewal. They transform themselves through proactive innovation and change management. Competing in the short term, requires increasing the alignment among strategy, structure, people, culture, and processes. This essentially means increasing the efficiency by mastering the basics. Yet efficiency alone will not ensure long-term success. For sustainable success, managers must understand how and when to initiate revolutionary innovation and, in turn, revolutionary organizational change. Because they focus on the product rather than the process, successful organizations are usually conservative. They actively try to preserve their core competencies. This conservatism can make it very difficult for any successful organization or system to reform itself. Complacence and satisfactory under performance describe the state of affairs in many organizations. As long as there is no gap between expectations and performance, a successful system will remain stable. Managers of successful organizations learn what works and incorporate their learning into the firm’s formal and informal structures and processes. Being effective requires uniformity and conformity. Yet, if the learning emphasizes today and yesterday, the organization runs the risk of becoming unresponsive to the changing environment. While flexibility, speed, innovation, and responsiveness are crucial as product classes evolve, so, too, are characteristics such as consistency, reliability, and efficiency. Too much of the former, and organizations may fail to capture the value of their early innovations. Too much of the latter, and firms may develop toxic levels of resistance and inertia. According to me, the need of the hour is ambidextrous organizations – organizations that are comfortable with stability and incremental change as well as experimentation and discontinuous change simultaneously. Review the process by Institutionalizing for innovation Got sustainable business with customer satisfaction.