Watch us in Action
"Open Innovation"
For over a decade, start-ups and disruptive players have been leading the markets. Large organizations have tried to keep their place in the game and reclaim the top by developing more efficient innovation mechanisms. Let’s all try to say this without sighing: they discovered outsourcing.Organizations who avoid deep rooting innovation in their own back yard, are trying to nurture it externally and enjoy the benefits it provides: hatching, crowdsourcing, hubs, and accelerators.
Our insight? The hype is bigger than the actual results and, for the most part, these processes fail for the same reason.
People and organizations have a natural tendency to reject innovation. We are intimidated by what we don’t know - from the alien and uncommon, anything different from our habits and seems inappropriate at first sight - and if we’re not careful, it’s easy to dismiss wonderful ideas right off the bat.
Even organizations that live off of innovation can suffer from NIH - the “not invented here” syndrome, which leads to quick rejection.
But changing perceptions or attitudes in an organization is expensive and requires a lot of work. It takes in-depth, broad processes to enable openness in an organization, and the larger the place, the more difficult and resource-draining it is. This year we discovered two ways of overcoming this challenge and succeeding in promoting innovation within large organizations.
For over a decade, start-ups and disruptive players have been leading the markets. Large organizations have tried to keep their place in the game and reclaim the top by developing more efficient innovation mechanisms. Let’s all try to say this without sighing: they discovered outsourcing.Organizations who avoid deep rooting innovation in their own back yard, are trying to nurture it externally and enjoy the benefits it provides: hatching, crowdsourcing, hubs, and accelerators.
Our insight? The hype is bigger than the actual results and, for the most part, these processes fail for the same reason.
People and organizations have a natural tendency to reject innovation. We are intimidated by what we don’t know - from the alien and uncommon, anything different from our habits and seems inappropriate at first sight - and if we’re not careful, it’s easy to dismiss wonderful ideas right off the bat.
Even organizations that live off of innovation can suffer from NIH - the “not invented here” syndrome, which leads to quick rejection.
But changing perceptions or attitudes in an organization is expensive and requires a lot of work. It takes in-depth, broad processes to enable openness in an organization, and the larger the place, the more difficult and resource-draining it is. This year we discovered two ways of overcoming this challenge and succeeding in promoting innovation within large organizations.
Starting Point:
In-House
Create A Competitor
It may be unnatural for an organization to be the one that creates competition for itself, but sometimes this is exactly what it takes to motivate people into embracing innovation.
In the case of Videa, a digital investment firm by the Bank Leumi Group, separation from the founding organization was necessary, in order to establish an organization capable of completely recreating its market. Leumi set the target and sent Videa on its way. The result is a platform that competes with any existing investment management approach in Israel.
In the case of Videa, a digital investment firm by the Bank Leumi Group, separation from the founding organization was necessary, in order to establish an organization capable of completely recreating its market. Leumi set the target and sent Videa on its way. The result is a platform that competes with any existing investment management approach in Israel.
Evil Sibling
And sometimes it's a matter of character.
Yes could have set up an in-house streaming brand and market it as an additional low-cost service, alongside its satellite and content broadcasts. Were it so, it is pretty likely that its character would have taken over the brand, framing is as not as important or lucrative.
Also, when interacting with its target audience, Yes would still be perceived as an 'established' service, and customers who wish to disconnect from “the establishment” would probably turn to others.
By launching Sting separately and allowing it to grow as a completely independent entity, Yes actually enabled Sting to rebel against them and appeal to an audience with different desires and feelings. Separation, in this case, enabled innovation in approach, thought, and brand, which proved crucial to this service and product.
Yes could have set up an in-house streaming brand and market it as an additional low-cost service, alongside its satellite and content broadcasts. Were it so, it is pretty likely that its character would have taken over the brand, framing is as not as important or lucrative.
Also, when interacting with its target audience, Yes would still be perceived as an 'established' service, and customers who wish to disconnect from “the establishment” would probably turn to others.
By launching Sting separately and allowing it to grow as a completely independent entity, Yes actually enabled Sting to rebel against them and appeal to an audience with different desires and feelings. Separation, in this case, enabled innovation in approach, thought, and brand, which proved crucial to this service and product.
Rebellious Insiders
Despite being a counterintuitive move, sometimes an organization has to strengthen and nurture the spirit of an internal rebellion within itself. It doesn’t have to revolve around fateful issue: sometimes small changes stemming from a guerrilla campaign of individuals, bring about greater changes.
We sat down for a chat with the VP of Innovation in one of the largest organizations in Israel, who manages multi-millions' worth of innovation budgets – he also happens to love lemon waffles.
Turns out that in order to bring lemon waffles into the office kitchenette, you need to raise the subject for discussion by the board of directors. This discussion dealt with the principle issue of whether an organization could and should consider everyone’s personal taste.
Eventually, the VP’s request was granted.
It may seem like a long road from here to true organizational openness, but even a single influencer from the organization can shift the collective mind. An organizational backbone that can contain its own rebels and nurture them is necessary for any type of innovation, from within or without.
We sat down for a chat with the VP of Innovation in one of the largest organizations in Israel, who manages multi-millions' worth of innovation budgets – he also happens to love lemon waffles.
Turns out that in order to bring lemon waffles into the office kitchenette, you need to raise the subject for discussion by the board of directors. This discussion dealt with the principle issue of whether an organization could and should consider everyone’s personal taste.
Eventually, the VP’s request was granted.
It may seem like a long road from here to true organizational openness, but even a single influencer from the organization can shift the collective mind. An organizational backbone that can contain its own rebels and nurture them is necessary for any type of innovation, from within or without.
TAKE AWAY
Innovation is, above all, an internal mindset.
It’s not enough to fund and set up external innovation divisions. You must first rebel against the organization's stagnant approach to develop a base for true creativity.
It’s not enough to fund and set up external innovation divisions. You must first rebel against the organization's stagnant approach to develop a base for true creativity.
Digital Transformation
Digital Transformation
Human 2.0
They grow up so fast. So does technology.
Who is the human in the age of integration?
Who is the human in the age of integration?
Raise me up
Open Innovation
Open Innovation
Fight Your Rituals
Are you currently ideating and developing while embracing your rituals? Reconsider.
Ritual Fighter!
Sharing is Caring
Sharing is Caring
Care for Meaning
How do you go from belonging to actually influencing? The right platforms – and we’re not talking about shoes.
Influence my meaning
Design Thinking
Design Thinking
Make Room for Uncertainty
In the right corner: business instincts. In the left corner: creative processes. Certainty vs. space – it’s on!
Ding!