Choosing the Right Gears To Drive Agile Innovation
Fast and effective innovation starts with strategy and structure
The historical paradigm of business innovation today has certain implicit characteristics. First, the innovation typically centers on new products only. Therefore, R&D and product development functions are the organizational locus of most business innovation. Moreover, the key to innovation is deemed to be process and systems, e.g., product workflow, collaborative software, IT systems, and the like. These characteristics are particularly apparent in B2B and manufacturing-oriented businesses.
However, the gears driving Agile Innovation are different, and purposefully and explicitly so. While process and systems are important parts of the capability-based operating model (see below), they are not the foundational part. Instead, Agile Innovation starts with careful consideration of strategy and structure.
Strategy is the fundamental problem-to-solve and rationale (the “North Star”, or what and why) of the innovation, and the envisioned path to success (the how). Based on innovation Strategy, Structure is then defined: including team capabilities, Agile ways of working, and means of customer and stakeholder iteration.
Strategy and Structure contribute to the Culture component of Agile Innovation: i.e., the values, mindset, and behaviors that should permeate the innovation environment. People and Skills are, of course, critical to getting the work done, including technical and soft skills. Finally, Process/Systems provide the box-and-wire basis to organize, execute, and track innovation: including process rules, IT tools, and governing metrics.
While all five capabilities are important, Strategy and Structure are the critical starting points of effective, fast, and profitable innovation. Strategy and Structure establish the foundation – the fundamental what, why, and how by which Agile Innovation is driven, and the effectiveness of people, process, and systems is maximized.
In addition, the drivers of Agile Innovation differ from historical business innovation in two other ways…
Agile Innovation delivers customer and business benefits beyond product innovation, with an extra interest in business model opportunities. By extension, Agile Innovation is not confined to product development, R&D, and “technology” functions; rather, any organizational function can, and should be, innovative. For instance, a business team should practice Agile Innovation. HR and Supply Chain functions can do the same, as should others. Indeed, benefits are scaled by the interaction of all business functions.
Ultimately, the power of Agile Innovation is greatest when its gears become as much cultural as operational in nature. Agile thinking and behaviors evolve into mindset and habits, which culturally automate the elevation of innovation quality, speed, and ROI across the business.
© OIC Innovation LLC 2022