No own can really own the definition for innovation, which doesn’t help any of us talk about it strategically.
As defined by the internet, Websters, etc…the definition you'll largely find is:
A) a new idea, method, or device
B) the introduction of something new
Questions arise:
- New to who? Me? Firm? Market?
- New today? New this century? This hour?
- Can anything actually be new? Isn’t every idea the maturation of an idea before? "Is anything new under the sun?"
When a firm has an innovation committee or panel to run ideas through, I've found they are largely looking for innovation in the realm of process improvement and I agree that the term innovation can be used for that. (How do we make the widget more efficiently, profitably, etc.)
- What tools exist in the market to get a/an: audit, return, engagement DONE....
- Without: clicking as many buttons, using partners, data pollution, involving on-shore resources, etc.
However, I like to marry revenue and innovation when at all possible because I believe it to be closer to the definition and in the spirit of value creation.
Firm Studio exists to map innovative ways a firm can bring higher value revenue into the fold of the firm. In some cases, this can be applied to various firms (I.E. construction niche) or can only be applied to the unique expression of that specific firm.
What is higher value revenue?
- It smells more like a product than it does a service in the sense that it's recurring, has higher margin, and is thought about through the lens of scale.
- It packages commonly used services to an easy to understand price
- Focused around target clients that should be a strategic imperative for the firm
Defining 'INNOVATION' in your firm will be a useful exercise to drive clarity and align certain goals.
