I have been asked to identify the different organizational Innovation models that companies can implement - particularly based on my experience working in the field for the last 14 years. My thoughts are that there are probably four or five models that could be implemented:
Central Innovation Function
- this is great in that it focused effort and acts as a beacon for the rest of the organization. Funding can be effectively channeled through the function as metrics can be put in place. the downside is that it tends to move 'responsibility' for Innovation away from the mass of the organization - they do Innovation so we don't have to!
Distributed Function
- In this model Innovation ambassadors are embedded in the Business units with a central co-ordination capability of 1 or 2 people. This approach is good in that the business units become responsible for Innovation dn the activities tend to be more focused on the problems at hand rather than the esoteric approach which a central function can engender. The downside is that the Business Units can go native and lose the vision of the company - a couple of companies have faced this challenge and have made bad acquisitions or investments.
Open Innovation
- the latest thing which is to get your customers and external bodies to innovate for you. Companies such as Dell and AT&T are using this to get ideas for products and services employing full time Bloggers to stimulate and solicit ideas which are then taken into a more 'formal' process for Idea Harvesting. the downsides of this approach are the complexity of Intellectual Property (IP) and the companies ability to harvest ideas for the mass that are generated (using the active Blogging approach does provide some degree of stewardship and therefore reduces the number of crazy ideas!)
Outsourced Innovation
- Of course there are many consultancy companies who will Innovate for you - Strategos, Ideo etc. are probably at the top of the pile and these can bring some good 'process' to the mix as well as an external view of problems and opportunities. The downside is that this approach does not engender any culture change and as the engagements tend to be short lived the company is typically left with either a list of ideas that it finds it difficult or impossible to implement.
Which is the best model - well in my humble opinion I would go with a hybrid of the Distributed and the Open approaches with a small central co-ordination function.
What other apporaches are there?
