Micro-Innovate Your Business

While the economy lies dormant, and most companies are in survival mode, technological innovations that have been in the works for decades continue to drive massive change in the markets. The change is a fundamental one because it is changing the way we communicate.

Just think of the changes that were brought about by the invention of the telephone, fax machine, radio and television. The change in the market place is drastic because our new technology is converging all previous means of communication. As we learn new ways to use this technology, the rate of change in the economy is increasing. Since all of us (your customers included) are learning new ways to speak and learn, it means the old ways you have been doing business needs to be critically examined.

Those companies with an active innovation program in place will be in the best position to dominate when purchasing power begins to increase.

Several challenges stand in the way, however. Many people are confused by the concept of innovation, thinking that it is something in which only the very best and brightest people participate. This is a limiting belief that only serves to stop you from doing anything. Anyone and everyone can and should participate in a properly run innovation program. With micro-innovation we are not asking you to invent the next replacement for the light bulb. We are suggesting that small incremental improvements can be made that will make a big difference in your business.

The second challenge is that for many people, innovation is defined by change, and change is something to be avoided (if not feared). Many people are heavily invested in the status quo and do not want to see it challenged. Remember the old cliche that says that the only thing constant is change. That may very well be true, and if so change should be embraced since another old cliche says if you can beat 'em, join 'em.

The third challenge is the (often false) belief that innovation is very expensive. Often times this is used by those afraid of change to put off doing anything. In fact, properly done, micro-innovation can save you a boatload of money that often times just drops to your bottom line. And it's not hard to do - if you just do it.

Micro-innovation is not inventing the next wireless gee-whiz (although if that's what you want to do - go for it) it's about engaging your most valuable resource (your employees and friends) in thinking in new ways to make small (but continuous) improvements in the way you do business. And best of all - you can have fun doing it.

Many people are intimidated by the thought of innovation or invention. In fact, the concept of innovation spans a wide spectrum of activity, easily within the range of most people. The hardest part of establishing an innovation program is changing the mind set of people to one that permits easy innovation.

Innovation - the act of introducing something new - takes place over a wide spectrum, just as the definition implies. but, many, if not most people shun innovation for many reasons discussed elsewhere on this page. Most commonly, however, innovation is simply misunderstood.

Let's take a look at what this spectrum of innovation looks like. In its most simplistic state you have:

1. A simple change in process or flow that allows you to produce your product or service faster, cheaper, or more efficiently. An example might be if your job is to rotate the widget before it's sent to the stamper, perhaps you could rotate and stamp the widget, eliminating the time and step it takes to go to the stamping station. A small thing indeed, but if you produce 10 gazillion widgets a year it can be a very big thing.

2. Add to an existing service in a way that creates greater values for your client. An example is Bob's Pest Control Service (a fictitious name). Bob's clients are local restaurants. His market is highly competitive and price wars are on-going. Out of desperation Bob asks his employees to speak with the clients to see if their are any problems they could help with. After a week or two he learns that many restaurants are plagued with strong odors in parts of the kitchen. This is due to floor drains drying out, letting sewer gasses back up into the restaurant. He also knows the freezer and industrial refrigerators have very dirty cooling coils because no one had the job of cleaning them. A little research showed that a simple vacuum cleaning of the coils would extend the life of the equipment by as much as ten years, and lower the electrical bills as well. Bob began to market his business as Restaurant Services; a company that would kill the pests, get rid of bad odors, lower electrical bills and extend the life of the freezers and refrigerators, guaranteed. No other pest control service offered that set of services and now Bob no longer competes on price. As a side benefit, he now has an active dialog with all his clients and he is seen as a trusted partner.

3. The first two examples of innovation are process changes that hardly even qualify as intellectual property. As we move into more of a design area, we have innovation that can possibly qualify as an invention. The first would be routine design problems solved by methods well known within the specialty. Approximately 32% of all patents fall into this category. An example might be Toyota's use of Just In Time manufacturing to reduce stock on hand.

4. Another example of innovation that may or may not qualify for a patent is making a minor improvement to an existing system, by methods known within the industry. An example might be found in Las Vegas. In order to get to the front desk, restaurant or even the rest rooms, the layout of the casino requires you to walk through the gaming area. Enough people stop briefly to put some money into a slot machine to make this idea pay off. This example may not be patentable but approximately 45% of all patents fall into this category

5. A more complex solution to many problems is when you use fundamental improvement to an existing system by methods known outside the industry. This might be an example of inverting a known issue as with the Home Shopping Network, or computer banking. Here you allow something that previously only could be done at the vendor's facility, now is can be done from home. Approximately 18% of all patents fall into this category. Please note that items 3,4, and five constitute 95% of all patents issued. Now it gets more difficult.

6. As the difficulty of innovation increases you begin to look more to science then from industry for ideas. A new generation idea that finds a new principle to perform the primary functions of the system. An example would the development of the proton exchange membrane that allows fuel cells to produce electricity. These ideas only constitute 4% of all patents issued.

7. And least common is a rare scientific discovery or pioneering invention. Examples of this type of invention would be discovery of the transistor, or the principle of the laser. This type of patent is issued less then 1% of the time.

The vast majority of time, innovation is little more then keeping an open mind as to how to do something a little better. It does not have to be revolutionary, or even radical. It simply has to do something a bit better then before. If practiced diligently, wealth accumulation is in your future.

If you are interested in learning more about innovative systems, please visit Coaching Institutes Inner Circle
. Here you can find The Idea Train newsletter and the Inner Circle membership site.

We are in a multi-year recession that has changed our markets, and our customers within those markets. The short answer to what his means is "business as usual" is gone. In order to respond to changed market conditions and changed customer attitudes, forward thinking companies look to innovation.

To many people in management the term innovation is frightening. They think big R&D budgets and the creation of "bleeding edge" technology. At the very least, most companies think they are too small to begin an innovation program. This all may be true if you are trying to create market changing technology, but a better alternative exists, micro-innovation programs.

Micro-innovation is simply making small, but continuous changes in your operations and procedures that will make you more profitable, and usually more competitive. But, how does one get into a micro-innovation mode? A fair question, indeed.
The answer involves the single most over-looked resource within any organization, the employees. Those people milling about your organization have been hired to do a specific job that almost certainly underutilizes their capabilities. In fact, many of them are likely bored. It's time to change that.
The experiences that your employees have had in your organization and other they may have worked at gives them valuable insight in how similar problems at other companies were handled.

So here are the things you will need to look at if you want to be successful at micro-innovation.

1. Define innovation and what it means to your success. Align the organization's vision, mission, values and key strategic objectives with your objectives for innovation, and publish it for all to see.

2. Get top management commitment and support for innovation through a budget, visible rewards and frequent communication. Create the office of Chief Innovation Officer because someone has to be in charge.

3. Develop an organizational structure for innovation, so ideas have a path to travel from conception to execution within the organization.

4. Determine the impact of innovation within the organization by establishing a baseline measurement of statistics and periodic metrics.

5. Give every employee permission and encouragement to innovate. Create a means to inspire, capture, shape, evaluate and share ideas.

6. Establish and support innovation champions throughout the organization who will create local innovation groups within their own sphere of influence. These champions will help employees communicate and shape their ideas into relevant concepts and create positive energy within the business unit.

7. Leadership at all levels needs to visibly celebrate both innovation success and failure. Yes, celebrate failure because that means you are trying. It is said that Thomas Edison first discovered over 1,000 ways that a light bulb did not work, before he found one that did. Create a culture of learning and collaboration within the organization

8. Train everyone in creative thinking and problem solving and provide support, tools, and materials. Encourage experimentation, testing and prototyping. Establish clear descriptions of innovation success.

9. Beware of business trends and future predictions in the local and global market. Many are short lived or just plain wrong, and are not worth pursuing, but don't let that be an excuse for inaction.

10. It's not worth doing unless you are enjoying it so, have some fun with it!