The Beginner’s Starting point to Rocking Company Innovation

Where to Start with Corporate Innovation

Alright, so you’re stepping into the world of corporate innovation. First things first, let’s talk about the two main types of innovation: explore and exploit. Explore innovation is all about venturing into new territories, while exploit innovation focuses on making the most of what you’ve got.

To get the ball rolling, you need to create a common language for these types of innovation within your company. This will avoid mix-ups and keep everyone on the same page.

Special hack #1: Create a taxonomy of innovation

We tackled the challenge of creating a common language by developing a taxonomy of innovations, a system that categorizes innovation into exploration and exploitation. The distinction between these two concepts is closely tied to the levels of risk involved. Exploration involves pursuing novel business opportunities and entails higher uncertainty and risk, as it delves into uncharted territories. Exploitation, on the other hand, focuses on optimizing current products, processes, or models, emphasizing efficiency and incremental improvements with lower associated risk. Collaborating with representatives from each business line, we carefully assessed the level of innovation risk within all types of innovations, distinguishing how closely the new projects are aligned with our customer segment and the extent of changes required in our business model. This evaluation enables us to make informed decisions about categorizing innovation risks as Explore or Exploit within our company. While our taxonomy offers a comprehensive framework, it’s essential to recognize that it’s not a rigid formula. It's not black and white with many shades of grey. In cases of uncertainty, we discuss with decision makers where the project fits better.

Here is an example of RBI's taxonomy of innovation

Best would be to involve reps from the entire organization and all levels of hierarchy. Clear communication and transparency are key to navigating the innovation landscape. Let’s not forget about getting everyone on the same page!

Next up, let’s bring some visibility into what’s happening across the organization. Which programs belong where? What are the governance structures (who makes decision and when), funding procedures (who gets how much money and when), and processes (what do you do first and what do you do last)?

By taking these initial steps, you’re laying the groundwork for a more collaborative, efficient, and downright exciting innovation journey. So, get ready to rock the corporate innovation world!