Innovation, the new average

Innovation

[As seen on Times of Malta, 21st November, 2013]

Innovation is an overused and abused term. From political figures to businessmen, innovation, as a word, is thrown in as part of their remit or mission statement. Innovation has been so overused that as a term, it today has a negative effect or, worse still, means nothing more than mainstream or average.

In fact, when I read a press release, mission statement or advert and the word innovative appears, I immediately understand it to mean an aspiration rather than a fact. Even though that company might have something worth shouting about, the term simply doesn’t do anything for me.

When entities, political or commercial, use the word innovative or any of its variations, what they are trying to say is “we think it is new and worth taking a look” or “look how clever we are”. Statements such as “Our innovative solution” or “innovative design” adds little value to the subject and is a case of blowing one’s own trumpet.

Innovation in its entirety does not say much about value add. Then what is all the fuss about?

Innovation that matters exists when it is used as the tool for successful entrepreneurship. It is a process of solving a situation or challenge in a different way, even if that innovation is a minute property of the problem. The measure of innovation, would be the change or impact on positive results within the delivered solution.

Therefore, innovation is a process or tool that delivers potential new products or services that can reap financial, or otherwise, rewards. So yes, worth fussing about. A country with a culture that values innovation will most certainly increase their chances for economic growth.

An interesting challenge exists in developing a behaviour that is entrepreneurial and innovative. Such shifts in behavioural patterns to develop these qualities are often the most challenging, as a lot of its makeup has to do with culture.

Interestingly, because innovation is a process, it can therefore be planned. It most certainly is not some eureka moment, or flash of genius, while sitting in a dark room smoking an intellect’s pipe. Innovation comes about through the constant challenging of a status quo, whatever that may be.

The most important aspects of being innovative are essentially understanding how innovation is derived, and after, how it can be validated.

Eureka moments for an innovation happens after a process of recognising a potential solution to a problem that has never been done before. Commonly, the problem is seen from different perspectives, in different domains, through a rigorous challenging process of questioning and through research. Yet the key point in all this is not only the process, but the strict focus on a single idea or problem.

In fact, even when an innovation is deemed noteworthy and is launched into a market, it will most likely be a cyclical process of tweaking and re-innovating. This is due to the fact that once a solution is launched, customer data can be gathered and used to develop solutions of fit within a market, or in other terms, innovations that add value to a market.

This is no newly discovered scientific process of deriving innovation.  Sir Alexander Graham Bell was not trying to invent the telephone but rather was making improvements to the telegraph in a cyclical fashion. The interest and persistence in such improvements came about due to his mother’s gradual deafness which resulted in his research in acoustics.

The process of labelling an innovation comes with customer validation. Proving it within your market fit will deliver the necessary positive change for it to be felt, measured and therefore quantified.

The technology industry has understood this clearly. It understands that innovation is felt mostly once it is used, as value can be transposed or associated with such an innovation. Therefore, tech companies offer 30 day free trials and other taster forms in order to prove its innovation and value and then win the sale, without ever mentioning the term innovative.

So when should we use the word innovative? Innovation is like proper management. Every company needs it, though writing it all over your office walls is nothing more than cheesy.

In Malta, innovation through the entrepreneurship model is beginning to emerge. A quietened murmur of tech start-ups can be heard within the economy as well as an increasing availability of individuals with entrepreneurial spirit. It seems that the stars may be lining up for Malta’s emergence as an entrepreneurial society, which means that the likelihood for real innovation to be seen will be on the increase.

Are you looking to fail?

Product development is a challenging and risky business. Any venture capitalist will tell you that more than one in seven ventures will fail. What they do not tell you is that all the seven ventures would appear to have a good chance of success. Otherwise they would not have invested in them in the first place. This can be a very daunting realisation, especially knowing that VCs are typically experienced entrepreneurs that can smell failure from miles away.

True, many books promote failure as being part of the process of success. Succeeding by failing is a process of learning by doing and all that “feel good” babble. But failing when the company is a start up and you have put your life earnings on this may be a different story.

Something to realise is that failure has different meanings. What causes failure? Failure can be circumstantial, meaning your market has vanished overnight, or can mean that the signs to shift course were not realised. Worst of all would be that the start up never had a business case which is  probably the most expensive failure of them all.

Failure can be disastrous, leaving your family without a roof, or can result in a set back with a surge of new found energy. The true winners of entrepreneurship are those that manage failure well.

I have always been interested in the concept of productization and the value that it can bring to a market and your business however I often see that the process of converting function to a product is done with either unnecessary risk or not enough, resulting in missing the proverbial boat.

This blog exists to share my thoughts, in an unedited manner, to entrepreneurs looking to join me through the journey of understanding the process of delivering products to a market with the appropriate (not minimal) amount of risk possible, and capitalising on the opportunity.

If you do have any questions or topics you wish me to discuss, feel free to drop me an email or add me to LinkedIn.