Business innovation is the practical application of creative ideas that lead to creating new products or services, better offering products or services, or improving in delivering products or services. There are four components of innovation. These are the creation of the idea, its demonstration, application it and eventually its acceptance and action by the market. In this article, we will focus on the spiral dynamics of innovation.
Spiral Dynamics of innovation is a simple yet powerful method to capture innovation. It is a set of methods developed by the economists Robert Kaplan and David Norton to measure, analyze and capture the economic value of innovations. They first introduce innovation based on four broad perspectives: creating new value, capturing new value, creating new opportunities, and sharing information. The resulting framework thus defines four key elements of the process of innovation.
Thus, the spiral innovation model offers us a simple and straightforward way to capture and measure the creation of value and capture the creation of new opportunities in an innovative process. It also offers us a framework from which to understand the processes and activities involved in bringing about innovation, such as identifying the drivers of change, defining the scope of innovation, analyzing the costs and benefits of creating new ways of doing things, and identifying the new ways of doing things according to the definition of innovation. These processes are then compared with others throughout the value chain to identify the most suitable for innovation. Finally, the identified areas for innovation are placed at the center of the value chain and given priority over all other elements.
Creating new value is, of course, at the heart of innovation. But it is only through capturing and improving on what already exists that we can create true innovations. Companies must therefore look to innovation as a tool for improving productivity. While some innovations may increase productivity, we tend to forget that a company’s real productivity growth – which includes real wage increases – only comes from increased total investment levels in the r&d, innovations, and culture.
Therefore, innovation must be seen not as a product or a process that one could launch from scratch to capture the market or make something better. Innovation should instead be thought of as a process driven by need, coupled with creativity and a willingness to try something bold. And it is only through this approach that you can truly understand what innovation means and what it can do for your business. The focus should be not on defining innovation but on understanding the true meaning and value of innovation for your business.
Of course, innovation is not all about coming up with new ideas. New products, processes, designs, and innovations, for instance, are also forms of innovation. In fact, the problem with many forms of innovation – which often gets lumped together under the term ‘disruptive innovation‘ – is that they are not truly disruptive at all. Instead, what they do is to change the way things are done without necessarily altering the existing paradigm. A new innovative process or product does nothing more than improving already known or proven methods or products.
But even when new ideas are involved, we must remember that business innovation is still a creation. In fact, business innovation is often a creation that begins with a simple idea that someone believes in strongly enough to present as a new idea, only to find out that other people with better ideas are ready to take the new invention into the market. This is why it is always helpful and wise to bring in others to give you feedback or other suggestions on any particular innovation that you may be working on. Having others that are experts in similar businesses, fields, or areas will help you get more creative ideas for making the next innovation.
Innovation may sometimes feel like an overwhelming task, especially if you have absolutely no prior experience creating something new. Still, the reality is that most great innovations started small and were perfected over time. If you are looking to be the next great entrepreneur or business person to come up with the next big innovation, you need first to adopt the mindset of someone who has been where you are now before and asks for their advice and input. After that, you can make something new… and watch the world think you are the greatest!