Week 7 – Innovation, skills and Emerging Technologies
Navi Radjou on his Ted Talk Can Limited Resources Lead to Better Innovation? is super insightful, because discusses how Innovation can emerge from places, people and situations with lack of resources. He studied entrepreneurs from China, India and South America and saw that streets are important labs, because the scarcity of resources requires from this person creativity to bring solutions to their needs/problems. He calls it frugal innovation the approach of finding simple, cheap and efficient solutions that can be technically and economically viable to be adopted in scale. Also it looks for what is more available, like mobile phones and day by day resources, to be reinvented and improved to solve new challenges.
He also compares Silicon Valley approach that is constantly looking for the next generation technology ” more for more” and start creating a disconnection between the technologies created versus the real situation of people to acquire these equipments and technologies.
I live in Brazil and in fact we notice that usually companies in Brazil have less people to cover more areas and activities on companies. Is very common on richer Countries we see very specialized people in IT, supporting few activities/technologies much deeper, while here is more common roles that covers more technologies and areas.
Important principles for frugal innovation
- Keep it simples – easy enough to use.
- Do not reinvent the wheel – leverage existing and accessible resources.
- Think and act horizontally – companies usually scale UP and centralizing operations but if you want to be agile scale OUT horizontally to be more agile and capture more customer demands
Connecting with the Forbes article 16 Key Steps To Better Business Decision Making, the agility and simplicity are key factors to innovate with a clear proposal, It means, being inclusive and removing barriers, clarifying and simplifying problems and putting the customer at the center.
Also, the article says that emotional intelligence, learning from past situations, seeking diverse perspectives, and getting input from multiple departments contribute to better choices and in the same way understanding personal biases, creating quick experiments, and taking emotions out of decisions are also essential, while suppressing ego and encouraging collaboration foster effective decision-making.
Embracing strategic alignment, providing guidance, and leveraging AI-driven data analytics can enhance decisions but many companies still don’t now how to be really data driven or don’t trust on the insights they gather from data. As the article “Executives still mistrust insights from data and analytics” brings the majority of business leaders lack confidence in the insights generated from data and analytics. The lack of trust stems from concerns about data quality and accuracy, incomplete or inconsistent data, a lack of understanding of data and analytics, organizational silos, previous bad experiences, fear of change, and cultural resistance. To foster trust, organizations must focus on improving data quality, governance, and integration, provide data literacy programs for executives, promote a data-driven culture, and demonstrate the value and reliability of data-driven insights through successful case studies and pilot projects.
So start simple, fast and with the resources you need and then scale fast and rapidly gather customer feedback and run cycles of improvement seems to be important best practices for agile innovation.