Embracing the Power of Innovation

Innovation is no longer an option for businesses. Customers’ needs and expectations are changing, and technology is disrupting traditional businesses, fueling the rapid pace of innovation in today’s market, says Amy Radin, an advisory board member, angel investor and keynote speaker who spoke to business leaders last week at Kaufman Rossin’s Miami office.

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She cited author Geoffrey Moore’s definition of innovation as “any type of differentiation in your practice that drives preference.”

Incremental or sustaining innovation (i.e., small changes) is the main source of value for most businesses. The disruptive or “big” innovations are higher risk and less common, but can be huge game changers. Think about the power of innovations like the Ford Model T or Gutenberg printing press!

Making high-impact, meaningful changes that solve problems for customers is not easy work. With change comes opportunity, but it also brings discomfort, disruption and sometimes resistance. There is no instruction manual for innovation.

“Learning that innovation is often messy and seen in hindsight was a key takeaway,” said event attendee Eliza A. Fendell, SVP Culture at Aeropost.  “Innovation is one of our core values, and focusing on solving problems for customers has been the source for most of our innovation.  It was great to hear from Amy that this is a consistent trait among highly innovative companies.”

Whether you are making big changes or small ones, Radin said, the important thing is to stay in the game, persistently innovating, experimenting and trying to improve the way you do things.

She shared a few tips for getting started on the road to innovation:

• Behave like an innovator. Change requires passion, courage, adaptability, non-conventional thinking, and action instead of talk.
• Self-assess where you are today. Understand how aligned and ready your business is for change. Is an innovative mindset part of your company culture?
• Pursue high-impact actions. Think beyond product. Product innovation is where companies tend to go first, but it is often the weakest form of innovation because it is easiest to replicate. Think about improvements you can make in other areas like finance, process, offering and delivery. You also need to have the right capabilities, resources, governance and methodology in place for success.
• Foster a collaborative environment of experimentation. Learn from results and continue to iterate to the next step.
• Celebrate learning experiences. Encourage and support innovation throughout the company. Nurture or “greenhouse” young ideas and help them develop.
• Commit to innovation. Make a personal commitment, lead by example and be accountable for change.

Innovation, Amy shared, is where “growth seekers” are looking to create future success.