Innovation Mechanism 6: Innovation Ecosystem

Want to keep innovation flowing?  Don’t think of it as a pipeline, think of it as an ecosystem.

It’s the connections that matter.

Value creation takes place in continuous, iterative conversations between scientists, clinicians, patients, and investors. These conversations form a complex, adaptive system – a social network.  Like an ecosystem, a company’s innovation network evolves over time as relationships multiply and grow deeper.

Recommendation: Invest in the relationships that work.

From the beginning, foster deep learning relationships between scientists and investors.

It takes constant conversation to learn what will work.  Only a social network can create value.

Retain relationships, not just individuals.

Trace the interactions between people to learn how they created successful results.  Use these maps to guide future projects.

When integrating an existing group into a new R&D organization, learn which relationships were key to delivering high-quality work.  Engage those people to determine the best way to preserve the relationships.

Don’t imagine that a high valuation means you can forget about maintaining your value-creation engine.

Too many companies find that they can’t realize the potential of assets without the deep knowledge embodied in the relationships of the people who developed them.  Engage the original team in detailed planning on how to organize a transition that doesn’t leave the tacit knowledge behind.

Click here for a free download of the Kummer Consulting case study, Mechanisms of Innovation.

For a free consultation on how to improve your organization’s effectiveness contact Merle at mkummer@kummerconsulting.com