Business Innovation is about creating value.
And the degree to which value creation is monetized, is a very important metric for determining how well innovation contributes to business success.
As with the multiplier effect of new economy companies being greater than established organizations, there is a premium on innovation with new digital capabilities that deliver high value and a great User experience.
To help with understanding the different types of innovation, the following should be helpful –
- An Established Enterprise – mainly Monetizes Tangibles
ie: many Fortune 500 companies – with a business largely based on Physical Assets
- A New Economy Enterprise – mainly Monetizes Intangibles
ie: Technology companies – that is largely based on Intellectual Assets
- A Future Enterprise
- can Monetize Intangibles / Tangibles …. with an increasing digital focus going forward
- Is good at incremental and sustainable innovation + high competencies in disruptive innovation
…. analogous to having Singles and Doubles hitters in the line-up + some Sluggers — to better position the team to win ball games
While every enterprise recognizes the importance of innovation, and by virtue of becoming a large organization, they have proven their ability to innovate.
However, for an “ Established Enterprise “ to become a “ Future Enterprise “ now, there is a need to also recognize that innovation going forward is fundamentally different than in the past.
In this context, enterprises need to also evolve their Innovation model of “ Process and Predictability ” with “ Insight and Inspiration “ + an open and agile culture
…. if the goal is to innovate for impact – to meaningfully improve business outcomes.
Predictably, the sooner enterprises get better at Disruptive innovation, the more rewarding innovation is – as can be confirmed by how well value creation is monetized.