introduce
The rate of change and development of products, markets, and economies over the past few decades has given rise to a more nuanced (rather than entirely new) approach to innovation management: innovation networks. When an organization understands the requirements of an innovation network, what roles it can gain from its ecosystem, and how to bring the network together, it has the opportunity to implement sustainable innovations that deliver greater business returns than similar efforts in isolation.
Roles that make up innovation networks
The four professional roles that make up the innovation network are:
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1] Inventor
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2] Transformers
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3] Financier
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4] Broker
See below
figure 1
innovation ecosystem
Every organization is part of a wider business ecosystem of interconnected players. The constant emergence of new technologies and the innovations they bring strengthens the underlying relationship between these players, transforming it into an innovation ecosystem offering multiple paths to fulfill each role, ideally reconfigured on the basis of innovation Innovation networks to optimally develop available talent and maximize time to value.
figure 2
connect the network
For an innovation network to thrive, participants must share more than they can. Participants in an innovation network must share goals, motivations, and culture.
To do this, do the following
1] Alignment value
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Political Values - Due to potential conflicts between other products offered by the participants, it may not be possible for companies to form a close working relationship that would provide commercial value to both participants.
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Motivational Values - Relationships between participants in an innovation network change over time as the motivations of the participants change.
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Economic Factors - An economic imbalance between the parties may prevent one party from continuing to participate in the network and cause the other party to suffer significant financial losses following the termination of the partnership.
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Conditions of contract – a clear understanding of the expected responsibilities of both parties, identifying and documenting appropriate levels of service, and escalation paths to deal with issues that arise can preclude finger-pointing and the technical equivalent of mutual guaranteed destruction.
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Process Considerations - Capabilities in an innovation process need to work together, each capability has defined inputs, defined rules to govern activities within the capability, and defined outputs for the capability
2] Understand organizational capabilities
The challenge for organizations is to realistically identify the skills and competencies that are available internally and those that need to be acquired externally. Part of this process is also to identify the points of integration and negotiation that must exist between capabilities in order to be effectively contracted and managed.
image 3
Map metrics to roles to improve innovation network delivery
Innovation networks require tight coordination among the four roles and innovations. Because each role and capability may be filled by an internal or external entity, poor performance in any of these roles and capabilities could delay or completely derail the project. By using appropriate metrics for each role and competency, you can measure how well your innovation network is performing overall and help identify opportunities for further improvement. Use key metrics to guide the behavior of all involved when developing your own innovation programs, processes and networks
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