They are often celebrated for having done the unimaginable, for building products you never thought you needed, and pushing the limits of creativity packaged in an astonishingly simple way.
You guessed it. They are the world’s most innovative companies.
If we go by popular lists, such as that of Forbes and Fast Company, we’ll see companies like Netflix, Microsoft, Facebook, Nike, and the other usual suspects. Most recent additions to the group are biotech firms Pfizer-BioNTech and Moderna because of the vaccine-makers’ contributions to the fight against COVID-19.
These companies are said to be confronting the world’s most pressing challenges head on, while others are paving the way forward with innovative products and business models.
In today’s business environment, being innovative is increasingly being viewed as a must, rather than a “nice-to-have.” To weather the changing tides, companies need to innovate and be unafraid to disrupt themselves, so to speak. We need not look far to see disruption taking place in industries, such as travel and tourism, events, medicine, and retail.
Innovation is the road to longevity, many business leaders would say. But it begs the question: Does innovation have a secret formula? Is it a special power that only few possess? The good news is that innovation can be developed and harnessed within people and organisations. You just need the right ingredients.
Often we need to see what innovation looks like in action, so organisations can practice it and reap its benefits. While innovation requires a shift in mindset, a leadership that is supportive of failure and experimentation, as well as culture change, there are lessons that you can pick up from companies known for being innovative. In doing so, you can apply it on your own or within your organisation.
Here are a few:
4 winning innovation lessons for your organisation
1. Innovation starts at the top
In startups where the organisational structure is usually flat, it’s easier to exchange and test ideas. But in bigger companies, it gets trickier. As such, leadership support is crucial if you want to encourage employees to think outside the box. American company 3M, for example, is known for promoting a culture of innovation that encourages risk-taking and gives opportunities to promising employees. In a Harvard Business Review piece, 3M is said to provide a rich variety of centres and forums where ideas can be nurtured.
Most importantly, the necessary resources are provided for employees to pursue ideas. When 3M employee Arthur Fry attended a gathering of scientists at the Technical Council, he heard Spencer Silver talk about accidentally developing a weak adhesive. Fry thought it would be suitable for bookmarks since it had two crucial features: it was reusable and it didn’t leave a residue. Fry applied for funding to pursue Silver’s idea and developed what we now know as the Post-it note.
2. Don’t be afraid of failure
This is an oft-repeated lesson, but it is still worth highlighting. Employees are reluctant to pitch new ideas or point out clunky processes that just don’t work at the risk of facing backlash. At the same time, companies are afraid to take risks because of the costs involved, so they would rather turn to tried and tested formulas. While this method works, it can cause complacency among members of the organisation.
That’s because failure is part of the innovation process. Let’s face it, we rarely get things right the first time. In order to learn from our mistakes, we need to experience them first-hand. Only then can we test out ideas, iterate, and develop them into a product, service, or process that will benefit the business.
As Elon Musk, founder of SpaceX and CEO of Tesla, said, “Failure is an option here. If things are not failing, you are not innovating enough.”
3. Embrace unpredictability
Pixar, the digital animation studio that made well-loved feature films like Frozen and Toy Story, thrives on innovation and creativity. But what would their films be like if they stuck to a proven formula? Would they be as exciting or heart-warming as they are today? Probably not. And that’s because Pixar knows the value in knowing when to stick to the tried-and-tested and when to embark on the unknown.
In his book, “Creativity, Inc.: Overcoming The Unseen Forces That Stand In The Way of True Inspiration,” Pixar co-founder Ed Catmull writes about creativity in business based on his own experiences at the studio. One takeaway is accepting that change is going to happen, whether we like it or not.
“Rather than fear randomness,” Catmull writes, “…we can make choices to see it for what it is and let it work for us. The unpredictable is the ground on which creativity occurs.”
4. Mix old ideas in new ways
In his book “Smarter Faster Better: The Secrets of Being Productive in Life and Business,” Pulitzer Prize-winning journalist Charles Duhigg writes about how we can create the conditions needed for creativity to flourish. Citing scientific studies, he posits innovation is more likely to come about when old ideas are mixed in new ways.
Today when a piece of content is being shared online many times over, we call it “viral.” Duhigg writes that when software programmers borrowed public health models used to explain how viruses spread and applied them to how friends shared updates, that’s the time when online social networking platforms started to boom.
The takeaway here is to learn how to transfer concepts in one area or industry and apply them to another. This may lead to novel ways of thinking or attacking a problem.
While creativity can’t be reduced to a single formula, there are many ways that organisations can learn to develop the conditions needed for innovation. For one, SMU Academy is offering a Graduate Certificate in Innovation programme that aims to develop the next generation of innovation leaders. Learn practical skills to keep you ahead of the competition and hurdle disruptions triggered by digital transformation. Who knows, you or your company may be the next great innovator.
