Situation Description
With the industry’s recognition of the role innovation plays in generating value throughout the entire production cycle, the companies are coming to an understanding that they have to have an organizational innovation capability to ensure the maximum of value creation. The problem is that innovation is very risky. According to Clayton Christensen (Harvard) and Michael Raynor (Deloitte), only 24 percent of innovation projects produce profit. As long as the corporate efforts to institutionalize innovation are based on the methods that do not address this key challenge of high risk / low ROI (such as brainstorming, open innovation, and other “group think” techniques), the only possible result of these efforts will be disappointment. As a case in point, a study (2012) by Accenture shows, while 92 percent of CEOs rely on innovation to achieve business objectives and try to deploy it, only 18 percent are happy with results of their efforts.
GTI Approach
The position of General Theory of Innovation is that to ensure continual creation of value, having an innovation capability is not sufficient; the company has to have the “On-Demand Innovation” organizational capability, which is defined as
-
The RIGHT Solution
- To the RIGHT Problem
- At the RIGHT Time
- EVERY Time
Creation of the sustainable “On-Demand Innovation” corporate capability requires institutionalization of all the GTI methodologies, processes, and tools. Additionally, it involves creation of the innovation infrastructure, establishment of the innovation-conducive culture, and seamless integration of the innovation-related business processes into an existing business system.
To address this challenge, the Institute of Professional Innovators offers a specially designed program under the title of Building Innovation Capability.
