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Embracing Constraints to Innovate: Executive Summary
Innovation is about creating value, whether it is bringing an idea to market or transforming a listless company into a vibrant organisation that enriches the bottomline. An innovative organisation is one that boldly develops and executes great ideas while taking informed risks. Furthermore, the ability to innovate is inherent in a company that possesses a culture and a mindset that recognises the need for change.
Innovation is very much within the reach of many Asia-based companies. Nevertheless, these companies should refrain from simply adopting, copying or benchmarking against Western innovation models. Borrowing Western ideals is, of course, more boon than bane. But our culture, talent pool, size of capital, technological and market accessibility limits our ability to emulate Western style of innovation.
The key to Asian innovation is to take from the best and blend with the rest. Asian companies must accept the realities of their operating environment — and its packaged constraints — then develop an approach to innovation that is most native to their culture, values and modus operandi.
While we have identified several tenets in the Catalyst For Change® Philosophy, when finding the most appropriate approach to innovation, the principle of Embracing Constraints is, by far, the most prevalent underlying tenet throughout the innovation cycle. When faced with attacks or constraints, we may fight, flee or freeze. Similarly, companies may face five barriers to innovation, which include culture, cash, capacity, capability and customers.
For this we turn to the ancient Japanese martial art of Aikido. The Aikidoka defends him or herself against dynamic attacks and overcomes constraints from various angles — without injuring the attacker. His or her immediate response to an attack would be to receive an opponent’s blow and re-divert its force in one continuous flow of movement.
Companies need to accept the constraints and focus on their power to change and manipulate the situation — using as little resources as possible — instead of being overwhelmed by the obstacles.
Furthermore, innovation isn’t the work of a lone visionary, it is instead the sum of many parts. More than often, management must ensure that its nuts and bolts — among them the organisation’s culture, structure, finances and people — are aligned before they even think about innovation.
For those reasons, companies should empower and influence leaders to mobilise the troops. It is an efficient and powerful strategy aided by Asia’s patriarchal traditions that have resulted in organisations that thrive on top-down management styles. Leaders must also exercise or embed eight crucial elements, that we have identified such as concentration, coordination and creativity, in efforts to realise innovation.
A company may maintain a healthy profit margin and enjoy continued success without innovation, by maintaining status quo — focusing on quality, cutting costs and customer relationship. This is especially true if the company is unexposed or immune to competition, and more so if its customers demand little choice.
However, few companies operate in such a utopia. For the rest of the corporate and commercial world, there are several reasons why companies should embrace innovation. While there is no right time for innovation, companies need to consider the aforementioned factors and decide if innovation should be on the agenda.
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