What is new in innovation?

Peter Dixon, chief technology officer of Dimension Data`s Team Source, addresses some of the unanswered questions surrounding the occasionally ambiguous topic of innovation.

Today there are many factors that make it harder for organisations to grow, achieve and maintain a sustainable competitive advantage. One way to do this is to establish and nurture a culture of innovation in the organisation.

But who should take the responsibility for innovation? Should it be assigned to a specific person, or should it be the responsibility of a particular department? And what are the requirements for innovation? Is it something that can be measured?

Understanding innovation is an essential component in a knowledge-based economy. "The success of an innovative concept depends on how it is adopted rather than who developed it or where it originates from. In many cases it is also measured in terms of the degree of technological advancement," says Peter Dixon, chief technology officer of Dimension Data`s Team Source.

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A central element in innovations literature is that of newness. What is new to the company? What is new to the market? These are only two of the many questions that need to be answered, which is why Dimension Data is hosting an innovations event in conjunction with First Tuesday.

Dixon believes that one way to leverage the promise of improved competitive advantage is to develop a culture of innovation within an organisation where creativity and thought leadership is nurtured. This culture should be the responsibility of all organisational members, but needs to be driven by senior management and supported by information technology.

There are various internal and external factors that influence innovation. Internal factors include aspects such as a willingness of employees to understand the role of innovation and having an understanding of how individuals contribute to innovation. Internal communication plays a pivotal role in communicating an organisation`s vision of innovation. External forces include market conditions and the industry environment in which the organisation operates.

"An awareness of these internal and external factors is needed, and it needs to be managed effectively to ensure success in innovation," says Dixon.

What inhibits innovation? Dixon identifies issues such as organisational structure, rigid ways of thinking and outdated policies and procedures as barriers to progressive and innovative thinking culminating in non-transformation.

There are also issues surrounding innovation within partnerships, and in particular within outsourcing agreements. One of the risks associated with this is the protection of intellectual capital. Organisations involved in such arrangements stand the risk of losing original ideas and information unless a true partnership of trust is formed between them.

"The key to innovation relates to the core definition thereof - newness. Organisations need to renew their people, products and processes on a regular basis in order to stay current and keep ahead of their competitors," concludes Dixon.

The Dimension Data/First Tuesday innovations event takes place on Tuesday, 30 March at The Campus in Bryanston.