The fundamental purpose of Innovation is to create value that translates into enhanced stakeholder/shareholder value. Sustainable process-driven innovation transforms ideas into vital intellectual property, Intellectual property into revenues, and revenues into increased stakeholder value. While the creation of the idea is important, the creation of value for the customer is equally paramount.
In many companies, a board of directors will guide the overall strategy and direction of a company. Audit committees keep financials and performance in check. HR committees ensure diverse and talented hires and competitive benefits.
The Innovation Committee is primarily responsible for advising and assisting in all matters regarding innovation. They will oversee the entire journey of innovation and be responsible for driving the entire process. Their main objective is to provide innovation guidance and to help ensure its implementation, buy-in, and development across the business.
Each committee has been formed to advise and support the CEO in his or her pursuit of protecting shareholder interests, and building value. In many cases, the CEO becomes and should be the CIO, or chief innovation officer. Every organization that grows by creating new products or services, or any organization that aspires to out-class the competition needs a Chief Innovation Officer, or CIO – someone who fosters creativity, develops new ideas and inspires your team to innovate.
Properly managed innovation drives value creation – for the organization, its customers, and its internal & external shareholders. To make that happen, you need to elevate innovation higher than just the CEO.
Innovation should be part of the company-wide culture. Educate your CFO about investing in innovation, so that you can invest in the people and time needed to make innovation happen. You need to have executive level buy-in, and they must not only endorse, but proactively push for Innovation. Making sure objectives and reward systems are aligned.
You can create value in many ways, namely:
- Improved silo-busting, team-building, collaboration, and alignment of priorities
- Amassed Intellectual Property, and a packed new product development process, which gives the company or organization a competitive edge
- Strengthened fiscal performance, which lures additional investment
When you pair well-considered innovation and safe-guard your related intellectual property you ensure your companies continued success.
On top of creating companywide buy-in, it is imperative to build and protect intellectual property through the use of patents. Patents protect and define the innovation so they are the key step to commercialization and enhancing value.
For example, the IP portfolio of Airspray doubled in value because of the patented technology that turned liquid hand soap into foam. Airspray realized, and its fiscal results proved, that the regular and persistent renewing, refreshing and updating of patents was well worth the cost.
While the role of corporate IP governance and supervision is critical, companies that have respectable IP portfolios must install an IP Officer on the innovation committee or new product development board. The intention would be for the IP Officer or team to…
- Manage the IP portfolio, keeping a keen eye on that place where consumer or market trends and the portfolio intersect.
- Present opportunities to the innovation or NPD teams.
- Work with those teams to craft approaches to maximize potential monetization.
Even small businesses with no IP portfolio can maximize IP potential. For example, IP Teams can search IP auctions or licensing opportunities to see how patents available match with the company’s goals or vision (Open Innovation).
In the end, Dynamic innovation will yield a profitable return on investment (ROI) measured as a favorable direct correlation of innovative ideas and net profits earned. These seized opportunities can increase stakeholder/shareholder value and drive the customer/consumer value proposition.