Posts

Most organizations have plenty of forward-thinking people who want to innovate. Getting initiatives off the ground, however, is a different story. Oftentimes, it requires taking a leap into the unknown, and there is a good chance you will only achieve the desired result after several attempts.

Moreover, you will be held accountable if things don’t go right the first time. Sticking with your old ways or implementing internal alternatives can feel safer. Nevertheless, it is a shame if you don’t innovate, because you won’t improve.

Choosing a different route can lead to many new insights. True, it requires more time and effort. But once you succeed, there are ample benefits to reap. In this blog, we will list the three main reasons why an organization should embrace innovation. Hopefully, it will set you off in the right direction and help you unlock your company’s potential!

1. Future- and millennial-minded

Today’s young talents are the employees of the future. Therefore, it is not only important to attract them; you should also offer them a work environment that allows for growth and development.

Especially well-educated millennials want to contribute their bit and like to be heard. When they present their ideas, you should not make them feel as if they run into a stone wall. Allow them to help you change and improve, and they will.

 2. Continuous improvement

‘How can we do things in a different and better way?’ It is a question you should be asking all the time. Only then, you will be able to organize your processes in the most efficient and effective possible manner. Co-creation can be very fruitful in this context: by involving your customers or suppliers in your innovation process, you can work on securing your organizational future while strengthening your relationships.

Incidentally, don’t forget to make participants in an experimental project sign a document which states that you may not yet meet all requirements during this stage. At the same time, tell them you firmly believe that your efforts will be advantageous in the near future.

 3. Team and company culture with adaptive power

The world is innovating at a rapid speed, and management can’t afford to lag behind. For example, when flex working found its way to offices all around the globe, many organizations quickly redesigned their interiors to welcome the concept.

No more office booths or assigned desks: even CEOs should sit randomly at any desk available at the moment. It sounded great, but in many cases, management had claimed its ‘own’ corner within a month. The result: work processes were not adapted to new ways of working, and nothing improved.

In our other innovation blogs, we will discuss how you can recognize and eliminate such innovation killers!

In our last blogs about innovation, we discussed the importance of embracing innovation and explained how to recognize and eliminate innovation killers. Now, it is time to look at the requirements for innovative ideas and the way you can realize them.

Every process of innovation follows a pattern of trying, failing, learning and trying again. So before you can innovate, you actually have to realize the ideas you have been thinking about for awhile. What does it take to get a good initiative out of one’s head and into reality?

 1. The speed of trust

Innovation is about letting go of the obsolete – and, therefore, about loosening control. It is about trying out new things, that can lift up and boost your organization – or make everything a little less great. You never know what’s going to happen.

Many organizations struggle to make those courageous decisions, as this increases the risk that things could go wrong. It is, however, important to trust your experts if you want to get something innovative off the ground.

For example, before the 2007 launch of the very first iPhone, Apple employees were granted trust and a certain amount of freedom to develop a device that was completely different from any cell phone ever released.

No one knew what was going to happen, but they went for it anyway and it turned out really well for the company. Your innovation process asks for the same courage – and trust.

2. Failed attempts? No problem!

Innovation comes from the Latin word ‘innovationem’. Until the 16th century, being a ‘novator’ wasn’t a good thing. They were treated very carefully and were not to be trusted, as a ‘novator’ was a heretic or a disbeliever.

That’s right, innovation comes from people who didn’t feel comfortable with the established religion and came up with their own ideas. If you want to be innovative, come up with your own ideas, even if not everyone’s immediately on board. Because although it turned out well for Apple, sometimes it takes a long time before innovative processes bring any benefit to your organization.

It is crucial to realize from the beginning, that innovation processes hardly ever go right the first time. While trying out new things, you discover what works and what doesn’t and this way you learn by trial and error. Apple did, Triggre did, and so will every other organization.

At the same time, it is important to take damage control into account so you (and your employees) are well prepared. For example, explain to your test group what you are trying to accomplish and have them sign a document stating that you are at an experimental stage. Also, pick the right process to experiment with – not all processes are suitable!

3. Leading with a compass (not with a clock)

When you are planning an innovative move, it all starts with the ‘why’. Ask yourself why your organization is making changes and create a goal before you start. After awhile, you can check the progress your organization has made, by asking if you are getting closer to the ‘why’.

‘Are we heading into the right direction?’ is the key question in innovation processes, and it should be one of the few you are (re)answering along the way. If the progress gets you closer to fixing the reason why you are innovating, your organization is on the right track.

When implementing innovative initiatives, it is essential to lead with a compass, rather than a clock. After all, you don’t know how long a process will take. You take steps forward and you take steps back, and the project plan will most likely never be on schedule.

Still, every move will get you closer to innovating and being better than before. You can only determine at regular intervals whether you are still on track towards your final goal: innovation!

In our other blog about innovation, we discussed why it is important for organizations to embrace innovation. Today, we would like to help you tackle a related issue: innovation killers.

Many organizations have employees who want to innovate, but who cannot seem to get their initiatives off the ground. The majority tends to cling onto the ‘safe’ status quo, which makes it risky to pursue innovative ideas. After all, if it goes wrong – and it often does the first two or three attempts – you will be held accountable in an innovation-unfriendly environment.

This is a shame, because sticking to old habits inevitably means that you won’t improve. Below, we will list three common innovation killers. If you can recognize and address them, it is easier to eliminate reluctance and take your first steps towards innovation!

1. Being swayed by the issues of the day

Most companies are always busy organizing sales, delivery, and transportation. Oftentimes, innovative initiatives have to make room for such urgent matters. However, if you think about it, organizations with this mentality are fighting a losing battle.

After all, they can’t improve their efficiency. It is only sensible to take a moment to consider why your processes are organized the way they are. Only then, you can spot the gaps and make improvements.

 2. Compliance-related concerns

There is an ever-increasing amount of laws and regulations that you need to comply with. Consequently, many decision makers leave the green-lighting of new initiatives to their IT compliance experts.

However, experience shows that the answer completely depends on the individual handling a proposal: many people reject initiatives because they are afraid to make a compliance-related mistake.

Due to the associated fear of things going awry, compliance can be a real innovation killer. Therefore, a change in mindset is crucial: organizations and their employees need to realize that compliance can actually assist in setting up innovative initiatives.

 3. The widely dreaded bureaucracy

Many organizations are hindered by the seemingly countless departments a proposal needs to pass through before any action can be taken. Employees with innovative ideas are often scared away by such drawn-out processes. They give up before they have even tried.

One way to break through this cycle of bureaucracy is to take calculated risks. On a case-by-case basis, try to determine whether it is acceptable to opt for a faster-than-usual route when it comes to an innovative initiative.

If so, you could try it out among a small number of end customers. Have them sign a contract stating that they are aware of being in a test group upfront. This will reassure the legal department and ensure that your end customers are involved in your innovation process!

Triggre helps organizations stay competitive in the market. It ensures that you can work much faster by simplifying processes in an easy way. It allows you to build whatever tool you think your organization needs. Should you have a ‘what if?’ question, finding the answer with Triggre is a breeze.

You can adapt your software in no time to see it in practice and test the results. Triggre is a time-saving, innovation-friendly and profitable tool. In this blog, we’d like to explain all things above by sharing an example!

Creating contracts anywhere: OCI’s module

Our client OCI used to experience problems because their ERP system was not available at all locations. For example, when the sales manager visited a customer to negotiate a new contract, he scribbled any agreements made on a notepad.

Once he got back to the office, he could enter the information into the system. But it would take him a while to do so, as he tends to have multiple customer visits scheduled on an average day. In other words, he had to keep the customer waiting.

Therefore, OCI used Triggre to make an addition to their customer portal: a module that is used to create contracts by Sales Managers. Nowadays, the process is significantly smoother.

Upon concluding an agreement with a customer, the sales manager logs onto the customer portal on location to enter all relevant information, such as the agreed-upon price and amount.

In the background, all the required data is sent to OCI’s ERP system. Moreover, the contract is immediately available to the customer within the portal, so the latter can start placing orders right away.

You got the tool… now use it!

The great aspect is that OCI was already using Triggre for other processes and saw an opportunity to get even more out of it. This illustrates the importance of regularly reflecting on your processes. Can you work more efficiently and/or serve your customers better? The answer(s) may surprise you.

To clarify this, let’s end our blog with an analogy: if you’ve always traveled by plane and your new boss suddenly puts you into an autonomous car, you’ll only gradually discover its wide range of possibilities. So consider yourself an airplane passenger and Triggre your brand new state of the art vehicle!

The number of big companies that filed for bankruptcy has increased with 22% worldwide in 2017. Big companies in this case, means those that have a turnover of more than 50 million. The total turnover of these 321 companies was 104 billion Euro. And this year, a further increase of 8% is expected.

The cause

Apart from sector specific causes, there is a bigger main cause: technological change keeps accelerating. Companies that have a hard time adapting to technological changes face a much higher chance of going bankrupt within the next few years.

What makes this situation even more problematic is the low interest rate. Many companies have taken on loans against very low interest rates. But if these loans aren’t being invested in the right business models, it will be extremely unlikely that these loans can ever be paid back.

Big companies have a tendency to focus on the short term, for example to please shareholders. Investing money in innovation can often lead to a temporary setback, which is hard to sell to shareholders.

Innovation is a mindset

In my opinion, companies should adopt an innovative mindset. That doesn’t mean that they should strive to be the next Tesla, or venture into research they don’t understand.

What they should do is the opposite of what they often do now: sit back and enjoy the revenue stream of their products or services. And that means companies should look for ways to improve.

Improve on products, services, internal processes. Everything. And that improvement only needs to be 1% per day. If a company can improve just 1% per day, whether it is on revenue, customer experience or efficiency, that company makes a giant leap every single year.

But more importantly, when people are taught to work with the mindset of finding improvement everywhere, they will actually start seeing these opportunities. The problem isn’t that the companies that went bankrupt last year didn’t have the opportunity to improve, it’s that they didn’t see it.

It is hardly a big secret that it is hard to find good developers. And that salaries for these developers have steadily been increasing over the past years. Faster than other salaries, as well. This is just how the market works, so what’s the big deal about it?

The big shortage

In our whitepaper about the IT Shortage we give a lot of background on the ever growing shortage of developers and solutions. But let’s focus on just the main issue at hand: the shortage itself. Most people I talk to only experience developer salaries going up and the fact that it is hard to find developers on the labor market. A very interesting number however, is the actual absolute shortage.

Last year the number of software engineering students graduating in the US was 50.000. Universities have been estimated to be able to educate 8 times that amount by 2020, meaning 400.000 software engineering students graduate that year. So far, so good.

The problem becomes apparent when we look at the amount of job openings in the labor market for software engineers. In 2016 the number of job openings was 223.000 in the US. Gartner estimates that this number will grow up to 1.400.000 in 2020. In other words, last year 23% of job openings could be covered by graduate students, in 2020 still only 28% of job openings can be covered by graduate students.

That’s hardly an improvement. In the chart below I have plotted these numbers so you can easily see the problem.

Chart

Because the most detailed data was available for the US, I have used that data. However, similar numbers are found in almost every other developed country around the world.

The source of the demand

The increase in demand for software developers can be attributed to growth in many sectors that require software. The biggest growth is in the demand for custom software. In 2011 the world-wide demand for custom software was USD 43 billion. This grew with 33% per year to a whopping USD 136 billion in 2015.

This growth is expected to continue due to globalization forcing ever more companies to distinguish themselves from ever more competitors. One way to do this, is with custom built software that implements their unique business processes.

Below is a chart that shows this growth from 2011 through 2015.

Chart

Stagnating innovation

The combination of higher demand versus ever increasing developer salaries is a toxic one. Ultimately it means that only the richest of companies can afford to hire enough developers to keep their competitors at bay.

These front-runners can easily expand their lead, leading to more revenue. This revenue can then be used to pay developers even more, making sure they don’t go to the competitor. Companies that cannot cope with the increases in developer costs, will be sentenced to mere mediocrity.