As organisations we need to understand the factors that influence the innovative power of the enterprise. There are three processes which incapsulate innovative power within the organisation. These are knowledge creation, innovation and learning to learn. The factors that may also influence this cycle are added value for stakeholders, leadership, climate, strategic alignment and structure.
At the end of the day if your innovation cycles are not continuous and driven the innovation will spiral and be conceptually destroyed with great difficulty in being recreated within the enterprise. However if innovation is regarded as a strength within the enterprise then it becomes part of moulding the future and the model has power.
Organisations today focus on the use of information technology and have the opportunity to become creative and smart. In essence innovative organisations have a deep understanding of the importance of knowledge creation. Therefore innovative organisations are defined by their ability to create knowledge.
Innovation begins from the start of an idea through to the production of a product or service onto the market. The alignment between R&D, production and market is vital.
Indeed the design, and implementation of new product lines, plants and people are part of the whole process of innovation to deliver added value to the stakeholders of the company through valuable knowledge.
So what is knowledge… well Davenport and Prusak (1998) defined it as follows: ‘A fluid mix of framed experiences, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of the knower. In organisations, it often becomes embedded not only in documents or repositories, but also in organisational routines, processes, practices and norms.”
Organisations are said today to be in the innovative age. The advent of Social Business Software allows for the creation of knowledge over time as it has the ability to become a knowledge repository for documents and best practices but it has the ability to encapsulate the culture and that is very very powerful.