Companies often get caught up chasing the latest trends, hoping the next big thing will give them an edge. But here’s the secret: the seeds of groundbreaking ideas might already be growing within your own walls. We’re talking about internal innovation sources – the kind that springs from your people, processes, and existing knowledge.
Relying solely on external sources is risky – kind of like building your house on someone else’s land. But tapping into these internal sources of innovation fuels sustainable growth and sets you apart from the competition.
In this article, we’ll unveil 7 internal innovation sources that every organization, big or small, can unlock. Think of them as hidden treasure chests waiting to be discovered.
This way, you’ll learn how to transform your company from the inside out!
A Quick Definition – What is internal innovation?
Simply put, internal innovation is like a company’s own creative spark. It’s when employees come up with new ideas, solutions, or even entirely new products, all from within the company itself.
Let’s say a company wants to improve its customer service. They might turn to their own internal data source, like customer feedback surveys or call logs, to spot trends or areas for improvement. That’s an example of internal sourcing – using information the company already has to come up with new ideas.
Next, let’s go over seven main sources of innovation from within your organization.
Learn more: 11 Proven Ideation Techniques and Strategies to Ignite Your Team’s Creative Genius
-
Leadership
Imagine your company as a ship. Sure, you need a skilled crew and a sturdy vessel, but without a captain charting the course, you’re just adrift at sea. And when it comes to innovation, leaders are those captains. They’re the ones who set the vision, inspire the crew, and create a culture where bold ideas can flourish.
Think Elon Musk. Love him or hate him, there’s no denying his impact. At Tesla and SpaceX, he’s constantly pushing boundaries, challenging the status quo, and making the seemingly impossible a reality. His leadership style sends a clear message: innovation isn’t just encouraged, it’s expected.
But you don’t have to be Elon Musk to be an innovation catalyst. Any leader, at any level, can make a difference. It’s about empowering your team to experiment, celebrating their failures as learning opportunities, and rewarding those who dare to think differently. When leaders embrace this mindset, they create a ripple effect that spreads throughout the entire organization.
Learn more: Why Every Business Needs a Chief Innovation Officer to Stay Ahead in 2024
-
Intrapreneurs
Ever had that employee who’s bursting with ideas, the one who’s always thinking outside the box? That’s your intrapreneur right there. They’re just like entrepreneurs, but instead of starting their own company, they use their hustle and drive to innovate within your organization.
Remember the PlayStation? It wasn’t some big-wig executive’s brainchild. It was born from the passion of Ken Kutaragi, a Sony engineer who went rogue (in a good way!) and pursued his passion project despite initial pushback from management. And look where that led! That’s the power of intrapreneurship – it can lead to groundbreaking innovations that might otherwise never see the light of day.
So, how do you unleash this internal entrepreneurial spirit?
It starts with recognizing and supporting your intrapreneurs. Give them the autonomy and resources they need to experiment, and don’t forget to celebrate their successes, big and small. When you empower your employees to act like entrepreneurs, you’re not just fostering innovation, you’re building a culture where everyone feels ownership and excitement about the company’s future.
The lesson? Don’t underestimate the power of your intrapreneurs. They can be your biggest weapon for disruptive innovation. Give them the freedom and resources to explore their ideas, and watch the magic happen.
-
All Employees
They say “two heads are better than one?” So imagine what a whole company of heads can do! Another internal innovation source is to tap into the collective genius of every single employee.
Think about it. Your employees are on the front lines. They are constantly interacting with customers, solving problems, and seeing firsthand where things could be improved. In other words, they’re a goldmine of precious ideas just waiting to be unearthed.
The problem? Often, outdated communication channels or a lack of the right tools can stifle those great ideas before they even see the light of day. That’s where specialized idea management software comes in, providing a platform for employees to share, discuss, and collaborate on ideas. This ensures that no brilliant spark will ever go unnoticed.
Let’s take Southwest Airlines as an example. They’ve built a whole culture around employee-driven innovation. From cost-saving tweaks to customer-wowing ideas, their employees have contributed countless improvements that have kept the company soaring high.
The road to success here is to create an environment where everyone feels comfortable sharing their thoughts and ideas. Think suggestion boxes, hackathons, or even just open channels for communication and feedback. Why? Because when your employees feel heard and valued, they’re more likely to speak up and share those brilliant ideas they’ve been silently brewing.
Learn more: 11 Proven Ideation Techniques and Strategies to Ignite Your Team’s Creative Genius
-
Centralized R&D
A centralized R&D department is your company’s very own innovation powerhouse.
Big players like Google know the power of focused R&D. Their “moonshot” projects, from self-driving cars to internet-beaming balloons, are born from dedicated teams given the freedom to explore and experiment. These aren’t just incremental improvements; they’re the kind of groundbreaking innovations that can reshape industries.
But of course, not every company has Google-sized resources. The good news is that you don’t necessarily need it to drive innovation from within. Investing in R&D, even on a smaller scale, can pay off big time.
A 2014 study by PwC’s strategy team revealed that companies plan to significantly increase their R&D spending on innovation, aiming to allocate up to 60% of their R&D budget within the next decade, compared to the current 40%. This investment in centralized R&D is geared towards achieving groundbreaking, transformative innovations, while the day-to-day, incremental improvements often come from employees within individual business units.
It’s about attracting top talent, creating an environment where scientists and engineers can thrive, and giving them the space to pursue those big, bold ideas.
-
Decentralized R&D
Let’s add on to the above. Think R&D is a one-size-fits-all deal? Not in these days’ more complex business world. Big companies juggling multiple products or services often find that a centralized R&D department just doesn’t cut it. Different business lines have different needs, different challenges, and different innovation timelines.
And that’s where decentralized R&D comes in – it gives each internal business unit the freedom to chart its own creative course.
Schneider Electric, the energy management giant, realized that a centralized approach wouldn’t work for their diverse range of products and markets. So, what did they do? They empowered each business line to have its own R&D team, laser-focused on meeting the specific needs of its customers.
Think of this example like having mini innovation hubs spread throughout your company, each with its own unique expertise and focus. A decentralized R&D taps into the everyday brilliance of your very own employees.
Can you imagine a marketing team brainstorming a creative new campaign, or a customer service rep coming up with a way to streamline the support process. Those aren’t just isolated ideas; they’re valuable innovations that can significantly impact your bottom line.
-
Innovation Labs
Forget the stuffy boardrooms and endless PowerPoint presentations (bo-ring!). If you want to see where the real future is being cooked up, head to the innovation lab. These aren’t your typical corporate spaces.
Innovation labs are the modern-day equivalent of the legendary “skunkworks” – those secretive, autonomous teams that companies like Lockheed Martin used to develop groundbreaking projects like the SR-71 Blackbird spy plane. But instead of building top-secret aircraft, today’s innovation labs are tackling everything from artificial intelligence to sustainable energy to the future of retail.
And these aren’t just side projects or pet initiatives. Companies who aim to stay ahead are pouring serious resources into their innovation labs, staffing them with full-time employees handpicked from various departments and giving them the freedom to operate like independent startups within the larger organization.
These Innovation labs are plugged into the pulse of the company, leveraging its existing assets – technology, partnerships, market access – to turn their ideas into reality. They’re the bridge between the company’s current capabilities… and its future ambitions.
-
Failures
Sometimes, the most groundbreaking innovations aren’t the result of meticulous planning or strategic foresight. Rather, they’re born from unexpected twists and turns – the “oops!” moments that make you scratch your head and wonder, “Now what?“
Here’s an example: 3M’s iconic Post-it Notes weren’t the result of some grand master plan. In fact, they were born from a failed experiment. A scientist was trying to create a super-strong adhesive, but instead, he ended up with a weak, reusable one.
At first, it seemed like a flop. But then, someone had the brilliant idea to use it for bookmarks, and voila! Just like that, the Post-it Note was born.
And that’s the true beauty of unexpected outcomes. They force us to think differently, to question our assumptions, and to see possibilities where we once saw only problems. A failed product launch might reveal a hidden market need. A surprising customer complaint could lead to a revolutionary new feature.
So remember to embrace those curveballs, those happy accidents– and turn them into opportunities for growth and innovation.
Wrapping it Up
So, there you have it – seven main sources of internal innovation, hiding in plain sight within your own organization. From visionary leaders to everyday employees, from unexpected failures to dedicated R&D teams, the potential for groundbreaking ideas is all around you.
Remember, innovation is a mindset, a culture, a way of doing business. It’s all about empowering everyone, from the CEO to the intern, to contribute their unique perspectives and ideas. It’s about embracing the unexpected, learning from failures, and constantly pushing the boundaries of what’s possible.
So, what are you waiting for?
It’s time to take a closer look at your own organization and see how you can tap into these internal sources to fuel your future success.
Don’t let those hidden gems of innovation go undiscovered. Unleash the power within, and watch your company soar to surprising heights!
Enjoyed reading this? Find more below:
What Is Process Innovation in Businesses? – Benefits, Examples, Case Studies
What is Radical Innovation? – Best Benefits, Top Examples with Real-Life Case Studies
What is Adjacent Innovation in Business (Real-Life Examples)