Running IT as an Innovation Engine in Digital Organizations

IT as the catalyst of business innovation: The definition of innovation is simple - to gain benefit by doing something different. Innovation is to have a new perspective of things. Innovation follows basic rules, which are adapted depending on the company's situation and ambition. Innovation can be categorized as empowered innovation (creative disruption), sustainable innovation (better version of product/service) or efficiency innovation (process improvement). IT can drive all sort of innovation, proactively pushing ideas on how to leverage technology to drive revenue growth, increase business productivity, flexibility, and agility. Often IT department are so busy in mundane day to day activities, they lose the sense of creativity over the period of time. Hence, CIOs have to learn the right and real things about organizations, not just via IT lenses, but via business lenses. Because then, he/she can practice that knowledge in the field to start innovating at the organizational level.
Process Innovation: Nowadays, technology is often the innovation disrupter, IT leaders are often at the right position to oversight business processes and set the right policy for their business’s technology and information usage, identify the critical business issues by working closely with a business partner from a long-term perspective, and leverage technology to manage innovation across the enterprise boundary. The challenge is to come up with a systematic approach that does not add more burden to an organization that is already dealing with productivity fatigue. Therefore, IT plays a critical role in business process innovation and strike the right balance between innovation and standardization. Standardization is inside-the-box (ITB), and Innovation is outside-the-box (OTB). Hence, organizations indeed need both, and, in fact, cannot realistically exist without a healthy balance of both. That balance, ought to actually be strongly in favor of standardization at the vast majority of the time!

IT is the key component in catalyzing digital innovation and building up differentiated business capabilities nowadays. When IT Executives move beyond commodity management and begin to show higher level strategic value and dedicate more resources on innovation, then IT is lifting up its maturity from reactively responds to the business’s order to proactively enable strategy execution, and from a support center to an innovation engine.
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Published on January 23, 2016 23:07
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