Technology
Removing barriers that keep your firm from staying ahead of the curve
Monday April 17 2023
Innovation is critical to enterprise success, an engine that drives growth, increases revenue, and keeps businesses ahead of the curve. FILE PHOTO | SHUTTERSTOCK
Innovation is critical to enterprise success, an engine that drives growth, increases revenue, and keeps businesses ahead of the curve.
However, as organisations grow, innovating becomes increasingly difficult. Institutional risk aversion, rigid systems, and a bias toward the status quo sound a death knell.
The question becomes; how can executives overcome these barriers and seed an innovative culture?
One answer is to experiment with new ideas. In a small company, it is easier to try new things because there is less at stake.
Nevertheless, in a large organisation, there is more to lose, and the pressure to maintain the status quo can be intense.
However, executives need to take calculated risks and experiment with new ideas. Take Amazon. It encourages employees to “fail fast” and learn from their mistakes.
By experimenting with new products and services, Amazon has become one of the most innovative companies in the world, building near unbeatable moats.
Another challenge of innovation in large organisations is brittle systems. Technology shifts can be exponential.
What runs an incumbent, from software to processes can become outdated faster than anticipated. It slows the ability of an organisation to meet often-gruelling consumer demands.
Executives must adopt agility as a practice and embed the flexibility to make changes necessary to maintain wholesome states across fluid software and human functions.
Institutional risk aversion can also stifle innovation in large organisations. The fear of failure can lead to a reluctance to try new things or take risks.
Data-driven, research-based, calculated risk-taking must be encouraged, with internal champions whose key performance indicators (KPIs) do not fall under current core pillars taking the lead.
Smart acquisitions are part of the playbook too. Google, allows its employees to spend 20 percent of their time on projects of their choosing.
This policy has led to some of Google’s most successful products, such as Gmail. Google Maps grew out of an acquihire.
Finally, there is the challenge of bias toward the status quo. When things are going well, there is a natural tendency to stick with what works.
We have always done it this way, echoes in the corridors. Netflix started as a DVD rental company and evolved into a streaming service by anticipating changes in consumer behaviour and adapting its business model.
The ability to disrupt an organisation from the inside can ensure business longevity. After all, if we are, to be honest, insiders have a great pulse on what could take down an organisation.
The times call for a certain boldness and urgency in creating new streams of value. Fostering an innovative culture is the key.
Njihia is the head of business at Safiri Express | www.mbuguanjihia.com | Twitter: @mbuguanjihia
