As someone with an unbridled curiosity about how (any kind of) organisations innovate, combined with a passion and ongoing interest for all new technological developments on the market, I have had the luck to have some incredibly in-depth and specific conversations with innovators about what they are trying to accomplish.
Every organisation is trying to accomplish something, because every one of them feels the pressure of being left behind. Some governments offer some limited protection in the forms of subsidies, tax-breaks, and protective measures against foreign competition, but every company has to stand on its own two feet by the age of maybe 3-5 years old. When you are alone like this, it matters to both earn a living now and to provide the promise of earning a living in the future. That is where innovation comes in.
We all derive our inspiration from the intelligent developments around us. For many, it’s the market, new technologies being released that make us wonder whether this or that organisation could do the same. For some, it’s also public, but less accessible releases in the forms of scientific breakthroughs that may inspire the expert to build on top of that. For a few, it’s the scientific team in a closed off lab that comes up with an idea that can transform itself into an innovation downstream.
It’s always worthwhile to come back to the essence of what an innovation is supposed to be: an invention that has commercial application. An idea that transforms itself into a product or service that people are willing to pay for. There are very prominent elements within this definition of novelty and applicability, which is a tough balance to manage between getting inspired by existing market innovations and not yet commercial raw scientific ideas.
The truth of the matter is that these are all races of solutions for specific problems. In the end, the problem (market) can only sustain a few of these solutions, which means that speed and completeness of a solution are keys to success. It means that any organisation that seeks to innovate, must do so in the way of a well-oiled machine, while realising that that investment may not pay off now, but will pay off if you see it as a continuous muscle that gets stronger with every problem you are trying to solve.
To make things not at all easier, the rate of innovation is increasing with technological advances. Physical goods are catching up to digital goods, in the sense that anything can now be modelled and prototypes can be produced and tested at a faster speed. This could and will very likely end up in a downward spiral for business returns, because, much like in for instance the software market, the range of utilities makes the market more price-sensitive and less loyal, thus creating less sustainable rewards from single innovations.
The conclusion is therefore two-fold. One, no organisation can afford to not dedicate time and resources to consider their long-term positioning in the market. Two, organisations seeking to be though-leaders in the market, must make the difficult choice of continually innovating with the promise of smaller returns, or of finding alternative models that position them within an innovative ecosystem, without getting sucked down the spiral. A good example of this are the many platforms that continue to arise, though even those risk becoming commodities over time. That … is the complexity in innovation.