ABSTRACT
If you want to have effective innovation (that is, delivering new and improved value cost-effectively) and also sustainable innovation (that is, repeatable over time rather than just a ‘one shot’) in your business, you have to proactively establish the right conditions for it. Research 1 and experience 2 has shown time and time again that effective and sustainable innovation requires a holistic and systematic approach. This approach weaves together the threads of a number of key practices to create a strong and rich fabric of innovation capabilities. Exploiting these capabilities leads to long term superior performance. 3 Best practice innovation thus requires an integrated system (Figure 14.1) which comprises seven key practice areas: Key Elements of an Innovation System
Leadership
Active support and encouragement from the top is key to innovation.
Strategy
A clear business strategy is required to provide context and priorities for innovation.
Process
A structured process to explore, select and implement the best new ideas is key.
Climate
The organisation’s culture and values can either energise or emasculate innovation.
Resources
People time, methods, money and other resources are needed for innovation.
External Linkages
No organisation is an island, resources from outside are key ingredients.
Learning
Capturing and sharing learning across the organisation is key to effective innovation.
