incremental innovations occur all over the world, but the innovations-revolutionary genre that exploiting new technologies and business models to reduce costs, increase accessibility, and improve are non-typical services. I think the reason for this is an improper implementation of the conditions that favor both the ability and motivation for innovation. These five conditions include:
- Experimental
- old phase-out products and services
- feedback loops
- Incentives for product or improvement service
- budget constraints
to illustrate how these conditions affect the innovation process, examine each.
Experimentation. Any organization that wishes to adapt to a changing environment needs a mechanism for the testing of new technologies and distribution models. Without the ability to develop an experimental infrastructure, radically new and different approaches rarely emerge.
old phase-out products and services. If the experiment is successful, it means a new challenge. Many organizations do not have the ability to freely remove obsolete technologies and business models. This requires leadership invested with the capacity to face the challenges that arise with the change.
feedback loops. It is no surprise that a strong reaction between the client and the organization are required to motivate investment in and adoption of the most important innovations. explicit feedback is necessary for managers to judge when to focus on improving services compared to the cost reduction.
Incentives for improving product or service. Equipped with the knowledge of what customers want, suppliers can improve their offers if sufficiently motivated with access to more revenue and / or cost reduction. The key incentive is available to them appropriately aligned with organizational goals.
budget constraints. budgets priorities strength. Not only limits force people to prioritize, they also create incentives to cut costs. Innovation to grab, managers must ensure that budget constraints exist in order to motivate the appropriate priority. In some situations, such as services distributed individually, the constraints must be placed on customers. In other situations, for example for the purchase, the constraint must be placed on the person responsible for the acquisition. Regardless of where the bond falls, it is vitally important that budgetary incentives are used to force priorities.
These five conditions for innovation make it possible to continuously change, and the difference between success and failure is the ability to create or preserve more most if not all these five conditions.
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