When Disruptive Innovation Gets Disrupted
The Right Foundation Makes or Breaks You
Imagine the following scenario.
Your organization has conceived the perfect idea for a new product innovation. In fact, it will be the most disruptive innovation in this product category in decades. The technology is there and you have line of sight to executing it… or so you think.
Six, nine, even twelve months into technical development, you come to a very problematic realization. It goes like this… while the technology to implement the disruptive innovation exists and integrating that technology in and of itself is clearly achievable, doing so creates major new hurdles arising from inherent system interactions with your other embedded technologies. In other words, the new technology being plugged in has to play well with the older technologies surrounding it.
As most of us perhaps know, encountering technical hurdles like this is to be expected. In fact, this probably would not be that innovative of an idea if it did not create some technical hurdles. But here's the problem… while your organization should have the technical foundation to address these hurdles, it doesn't. Not even with its outside partners.
Ouch.
Failing to Institutionalize Your Technical Know-How
At this point, one is probably asking: “Why this is?”
The answer is because this organization has failed to establish a clear structure and process for institutionalizing its technical knowledge, resulting in painful gaps in its ability to execute… gaps that should not exist. In other words, it simply has not built a broad technical foundation that is accessible across the organization. As a result, its ability to execute new innovations like this is severely handicapped.
Not true you think. It is true. It must be a very poorly managed organization you think. Not necessarily.
We have witnessed this firsthand more times than once — even inside some of the world's largest and most respected organizations (but we won't name names). The fact is it happens somewhere nearly every day. But it doesn't have to.
Preparing the Foundation
The moral of the story is simply this – at least when it comes to product and service level innovations that are technology-dependent: in order to be able to jump on opportunities when they present themselves (as in when new ideas arise for disruptive innovations), technology-based organizations must first prepare the proper foundation for innovation. That foundation is built in several ways.
First, it requires acquiring and developing top-level technical talent to carry out the work.
Second, it requires acquiring and/or developing the foundational know-how for each and every technology, component, subsystem, and system in your offerings.
Third, and most importantly, it requires creating a well-thought-out and well-executed organizational infrastructure and process that captures, owns, and manages the application of core technologies across the portfolio.
This final element is the key linchpin that ties together everything else. Without it, having the smartest people and the best products won't do you much good… eventually you will be left in the lurch. In contrast, having this foundation makes technology adoption and implementation very efficient and very effective, meaning you can pivot quickly. Moreover, using it to manage the evolution of your technology further bridges the gap into entirely new technologies. It is the bridge from the present to the future. Then, when the day does arrive to implement a disruptive new idea, you will be well prepared to take on the inevitable system challenges that get thrown in the way. You will not stall out.
The ‘Make or Break’
We've seen this one thing make the difference between being able to bring a disruptive innovation to market and not being able to. It is a make or break deal if an organization is to be a market leader through technology innovation. So, when developing your broader innovation strategy, this is one factor (of many) that you must give careful consideration to.
One helpful tool here is the innovation maturity assessment. This is an assessment that gauges (amongst other things) whether this is an area of strength or weakness for your organization and offers guidance on how to rectify it should it prove to be an area of weakness. Such assessments often pay for themselves many times over by helping organizations know how to focus their innovation management efforts. They are therefore very worthwhile doing.
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