Innovation is not an optional add-on
Innovative companies integrate their strategy not just into the operating model but into its culture as well. Companies that lose the drive to innovate risk losing staff skilled in driving innovation, writes Sammy Kumar .
I nnovation is not just a necessity for business but an aspiration of humanity. Often, at some point in a business’ evolution, management of the status quo overwhelms its true mission and purpose. The business wants to remove risk, re- cover investment and maintain market share; meanwhile, the skill set that drove innovation fades or moves on. Too many Australian companies have posi- tioned innovation as an abstract growth initi- ative as opposed to a core competency. This pits the existing revenue-generating business against a set of smaller, seemingly inconsequen- tial initiatives that will, in maturity, drive a bet- ter customer experience and higher margins. The separation of innovation from the core busi- ness rarely works, as innovation will not catalyse growth if it is not integrated into the operating model and culture. Integration enables businesses to embrace both new ideas and competitive threats. It also creates an inclusive culture, sharing the respon-
sibility of finding efficiencies, enabling data-driv- en decision-making and accelerating staff per- sonal development to ultimately deliver better customer value. “Innovation being integrated into the core business creates a model of better customer service experience, higher margins and accelerated staff development.” The problem for any organisation in a so-called business-as-usual phase is the relative impossibil- ity of innovating the operating model. This, in turn, makes the business inefficient, slow to respond to competitive threats and vulnerable to disruption. It also commonly creates a dysfunctional culture that inhibits all the possible benefits of innovation. In this case, trying to overlay innovation practices
INNOVATIA
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INNOVATIA
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