Hello and welcome to a new post. Today we discuss how to kickstart innovation in the plastics industry. Why? Most of us find ourselves in the position that in the 1st quarter of the business year the management staff and executives will present to you some expectations regarding innovation, especially how innovation will drive further business growth.
This can look like:
-Five new product ideas
-Three new programs started
-Minimum one new innovation project as part of the bonus goals
-Several patent applications.
It is combined with sentences like: ‘This year we need a push from our technology division to drive business forward’.
Also, emerging global megatrends, the fear of recessions and losing of market share increases the uncertainty at management level. In other words: now we must innovate to keep the business afloat!
It is in our hands to fulfill these expectations
How to start? Review the 4 types of innovation
Greg Satell, author of Mapping Innovation created the 2x2 Innovation Matrix, which helps us to identify the right type of strategy to solve a problem. The Innovation Matrix is linked to two questions:
1) How well can the problem be defined?
2) Who in the organization is best placed to solve the problem?
Figure 1 shows the 2x2 Innovation Matrix which includes basic innovation, breakthrough innovation, sustaining innovation, and breakthrough innovation.
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| Figure 1: Kickstart innovation - start by reviewing the 4 types of innovation (2x2 Innovation Matrix) [1]. |
Basic Innovation:
- Driven by fundamental research and the discovery of new phenomena.
- Leads to new knowledge and fuels the creation of novel applications.
- Accessible to small and medium sized enterprises (SMEs) through online resources and collaborations with scientists.
Breakthrough Innovation:
- Solves complex problems by combining expertise from different fields.
- Emphasizes cross-domain knowledge exchange and open innovation.
- Example: Using the behavior of clams to inspire a novel sensor design.
Improvement Innovation:
- Focuses on incremental enhancements to existing products.
- Aims to increase profitability through higher prices and added features.
Disruptive Innovation:
- Occurs when market shifts render established products obsolete.
- Requires a fundamental shift in business models and operational approaches.
How to apply this to your organization
First step is to locate where you and your innovation challenges are situated in the Innovation Matrix. Once done, it is time to apply tools which are especially suitable for each of the innovations:
-Basic innovation:
• Dedicated research departments in large corporations
• Accessing highly specialized research through local universities
• Academic partnerships
-Breakthrough innovation:
• Open Innovation Method Framework designed by Roland Harwood [2] consisting of degree of
openness (Open inside; Outside in; Inside out) on the x-axis and stage of innovation (explore, extract,
exploit) on the y-axis.
-Improvement innovation:
• Strategic road mapping
• Traditional R&D labs
• Acquisitions allowing to bring new know-how and skill sets into the organization
• Design thinking methods
-Disruptive innovation:
• The Lean Start-Up method with its three key principles (hypotheses testing with a framework
called a business model canvas; listening to customers and incorporate their feedback, and agile
development which allows for short, iterative product development cycles)
• Value Proposition Canvas is a framework which helping you to ensure that your product/service is
positioned around what the customer values and needs.
Generally, businesses emphasize the efficiency and good enough type of innovation since one can gain fast results, which can be measured well too. This can be a good start for you too, however gradually focus should be put on the four major types of innovation to uncover the next game changer in your industry.
Ready to revolutionize innovation in your organization?
My new book, How to innovate when you must, is your guide. It contains 15 actionable strategies to ignite creativity, spark new ideas, and drive business growth. Additionally the included innovation readiness assessment will help you pinpoint your organization's current innovation maturity and guide you toward a more innovative future.
Interested in my monthly blog posts – then subscribe here and receive my high performance polymers knowledge matrix.
Literature:
[1] https://www.amazon.co.uk/Mapping-Innovation-Playbook-Navigating-Disruptive/dp/1259862259
[2] https://theharwoodinstitute.org/approach
