There are different triggers for initiating an innovation process. They could include the ambition to develop new markets, to make use of new technologies, to create positive impact, to react to competition, customer needs or regulatory changes, or bottom-line improvements. The triggers are why a company wants to innovate, and there can be several of them involved. There is also the question of who comes up with the framework for an innovation process or a specific idea. In this context, a new role called “The Intrapreneur” is becoming more and more important.
An intrapreneur is an individual, employee of a company, who acts like an entrepreneur. A passionate individual who thinks and acts like an entrepreneur, working inside a company or organization, who develops and delivers innovative, profitable, and sustainable solutions.
- Intrapreneurship describes a people-centric, bottom-up approach to developing radical innovations in-house.
- Intrapreneurship pays off many times over in terms of company growth, culture, and talent.
- It is not about creating intrapreneurs, it is about finding and recognizing them.
- Intrapreneurs know the rules and break them effectively.
- Intrapreneurship requires a different management approach.
The key is not the idea, but the implementation! New sustainable business models combine innovative approaches (Lean innovation, business model generation, etc.) with sustainable themes (Materiality assessment, sustainable supply chain management, environmental management, etc.). In each case, the process must be adapted to the specific needs and circumstances of the company. Some examples:
- ·Creating a culture of innovation, increasing innovation and sustainability capacity, and establishing processes for innovation management.
- ·Aiming to co-create new business models, but potentially starting with innovation in sustainable products, services, or processes.
- ·Combining this proposed approach with innovation processes and cultures already in place.
- ·Varying and adapting the tools used, partners involved and level of external support depending on the business’ capabilities, needs, sector, scope, and goals.
Three are the phases for innovating the business model:
- Discover: In this phase, areas of opportunities are assessed. These can build on previous research regarding trends, sustainability impact, disruptive technologies, or market developments, but do not necessarily have to. Depending on the situation of the company, the first step can also include the setting-up of an innovation process. Then, the process is customized to the needs of the company, by adjusting the tool used, the speed of the process and the level of support provided. Because innovation requires funds (Be it for developing prototypes, human resources, or investment for the roll-out) it is crucial to have the commitment of decision-makers at the beginning of the process.
- Prototype: In the second phase, the innovation is shaped, tested, and improved in an iterative process. To do this, we must explore WHY we do WHAT and HOW for WHOM. We include tools of various disciplines such as design thinking, agile and lean start-up in order to answer these questions. Tools can include personas, customer journeys, value proposition canvases, sketching, expert interviews, or benchmarking. Furthermore, the potential sustainability impact of the new business model will further be examined and improved during the prototype phase.
- Roll-out: Once the business model and its sustainability impact has been validated, the roll-out begins. Again, this can happen in different ways. Depending on whether and existing business model is altered or a new one created alongside it, on whether the new idea should be delivered by a new organization, a spin-off, joint venture, etc. the roll-out can take different forms. The roll-out is a two-sided process: Externally in the sense of ‘getting to the market’, internally; by adjusting internal processes, structures, contracts, etc. And this is especially relevant for innovation alongside other existing business models. Depending on internal structures and policies, several ideas may have to compete for budget at the same time, once or several times a year. Internal thresholds (i.e., expected return on investment) affect the decision of “if” and “when” and innovation should be implemented. Therefore, the commitment of the management mentioned above is crucial to the success of the process.
Innovation is not rocket-science but requires following the process with discipline and usage of the right tools.
Does your company have a culture that allows and propitiates innovation?
Do you know the tools available to innovate?
Innovation is an accelerator for strategy execution and sustainable growth. If you want to create a sustainable competitive advantage and thrive, innovation should be present into day-to-day operations.
Are you ready to innovate?
We are here to help!
