Final Thoughts on Innovation
Today we wrap up the discussion on innovation with a number of comments from readers.
Phil:
Ah, certainly an intriguing question that should pique lots of interest. Of course there is no easy answer or formula. One of the rules of thumb I think is to ask "by innovating, will this give our product/service/business a significant advantage – or even – will it appear to provide an advantage" That question requires input from more than just technical staff and even tech leadership.
There are lots of elements that come into play. Business leadership needs to be involved. What is the cost and timeline for innovating vs not? How and when will the innovation provide the benefit? And to whom? One example I can provide is our work with our software product that has a growing base of customers.
We are still in start-up mode. We find that often certain customers will ask for new features. We are not yet at the point of having a system whereby these are fed into a process of evaluating them based on whether to implement or not. We cannot implement/innovate on them all. So lots of questions. This has the elements of art and science to it…
Chris:
This article struck a chord with me and some work I have been undertaking recently around innovation and how to value innovate a current product or service to be successful in an ever changing world.
I think the answer to this question depends on a number of factors, but can be highlighted by looking at examples of some of the world’s biggest technology companies. Amazon is a very interesting case when looking at innovation and how to be successful. Last year for example, Amazon spent around $7 billion on R&D, and each year they launch countless products and services that fail miserably. But, mixed in with all the failures are the successes, and when Amazon succeed, they do so in style. Every company should be investing a proportion of their available budget on developing new and innovate products that aim to not just lead the market, but shape it. We have seen this with Apple and other big brands. They offer innovation that affects the hearts and minds of consumers and constantly pushes the boundaries in terms of innovation.
The trade-off with any innovative idea is risk. You can expect around 8 out of every 10 innovative ideas to fail, which for some companies with limited spend would be seen as an unacceptable risk to their core business. However, the leaders of the world’s biggest companies have got to where they are today by balancing the risk of innovation against the rewards it can bring.
Edward:
Historically, organizations have insisted on custom IT processes for almost every area of their business. This is costly and hits the bottom line.
An organization definitely needs to innovate around its USP, but other functions simply need to be done efficiently and cheaply. Managers are increasingly realizing this, and the use of off-the-shelf packages for HR, Accounts Payable and Receivable, and many other areas has almost become standard practice.
However, there is continuing pressure to tweak a standard back-office process to satisfy the requirements/customs/traditions/legends of the business, and to an outsider this often adds far more cost than value. The Business Analyst needs to discern where the tweak is genuinely aiding the USP, or where it is motivated by fear, hubris, or poor competence, and lead the affected managers through these problems.
This is not saying that every package is perfect, but it is saying that working with a package by changing operational practices if often no less effective in business terms than tweaking the package. Working with what you have got results in faster and cheaper initial implementation, and significantly faster and cheaper implementation of upgrades. And if the business changes to a different package, change the business processes to work with that.
I really appreciate the effort each of you have put into your contributions.
Cheers,
Ben
$$SWYNK$$
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