What is the limit of human endeavor? Is it imagination, resources or will power? Today, the survival of enterprises depends on the ability to innovate. Since the world is becoming more global and the development of new technologies is rapidly increasing, the ability to effectively innovate is likely to become even more important in the future.
Organizations must become more agile, make decisions faster, use new management styles, evaluate performance, create new hierarchical structures and implement best practices. But there is also a need for effective innovation management systems. Innovation is a widely used word, but what exactly is innovation? Is innovation the same as invention? Simply put, no. Innovation is not just about inventing new things; innovation is about creating value, and the value of innovation is directly related to an increased rate of uncertainty. Innovation can be defined as the act of doing something in a new or novel way that delivers more value and/or better experiences to the customer who receives and uses it. It is worthwhile to remember that the greatest single opportunity for innovation is the customer experience.
An example of innovation in the recent past is the development of the Apple iPod digital music player. At the time, there were several portable MP3 players already available in the market (e.g., the Rio PMP300 by Diamond Multimedia and the Nomad Jukebox by Creative Labs). The problem was that most of them had serious flaws that prevented them from being attractive to potential buyers. The main difference between the iPod and other existing players at the time, including the Rio PMP300 and Nomad Jukebox, was not the technology but the customer experience. Apple may not have invented the world’s first MP3 player, but they did create and innovate the world’s first transformational customer experience with portable music. According to Steve Jobs, cofounder of Apple Inc., “One of the things I have always found is that you have got to start with the customer experience and work backwards to the technology. You cannot start with the technology and try to figure out where you are going to sell it.”
The 5 Laws of Innovation
There are 5 laws of innovation an organization can exhibit:
- Innovation is dangerous—go where the fear is. Innovators look at risk differently than most people. Organizations fear going into the space of innovation, not just because it is a new and uncertain space, but because it requires them to reorganize the complexity of their business operations. This is a significant reason why it is so difficult for larger organizations to be innovative.
- Innovators are impervious to rejection. Organizations should have leadership that is resistant to rejection and failure. There must be a constant commitment on leadership’s part to not be controlled by fear of the market’s punishment when introducing a new product that has never been seen before.
- Innovating is not the same as inventing. Innovation is the process of creating measurable economic or social value, while an invention can be defined as an idea that creates the potential for value. Many think of innovation as applying only to new products, but that is not necessarily true. There are many innovative products that have technically existed for a long time. It does not matter how old the product is, or how much customization is required; what matters is how organizations craft the customer experience for that product, which presents some of the greatest opportunities to innovate. The online reseller eBay, for example, did not just create a market—it changed the entire shopping experience.
- Innovation is not a solo endeavor. It is an established fact that innovation is not a one-man job, rather, multiple people are required to create new products and services.
- Innovation is a threat to yesterday’s success. Individuals and organizations who try to innovate by pleasing the market often fail. Markets only know what they have experienced. It is innovation that changes experience. For example, Uber and AirBnB changed the business model by offering disruptive and innovative rideshare and travel services, respectively.
It is important for every organization to evaluate whether its practices and employees are aligned with the 5 laws of innovation. In today’s global village, it is important to have an innovation zone in every organization where ideas can be identified, evaluated, nurtured and developed to create value. Organizations should encourage and reward free thinking, and the status quo must be constantly challenged and redefined. According to His Highness Shaikh Mohammad Bin Rashid Al Maktoum, vice-president and prime minister of the United Arab Emirates (UAE) and Ruler of Dubai, “Innovation is not an option but a necessity. It is not a culture but a work style, and governments and companies that do not innovate risk losing their competitiveness and falling far behind.”
Hafiz Sheikh Adnan Ahmed, CGEIT, COBIT 5 Assessor, CDPSE, GDPR-CDPO, ISO 20000 LA/LI, ISO 22301 LA/LI, ISO 27001 LA/LI, is a governance, risk and compliance (GRC), information security and IT strategy professional with more than 15 years of industry experience. He serves as a board member of the ISACA® UAE Chapter, IAPP KnowledgeNet Chapter Chair, and volunteers at the global level of ISACA as a Topic Leader for the Engage online communities. He is also a member of the ISACA IT Advisory Group, the Chapter Compliance Task Force, CGEIT Certification Working Group, an ISACA® Journal article reviewer, and a SheLeadsTech Ambassador. He is a Professional Evaluation and Certification Board (PECB) Certified Trainer and an ISACA-APMG Accredited Trainer. He can be reached via email at adnan.gcu@gmail.com and LinkedIn.