Innovation audits, are they an unnecessary hassle? Absolutely not. Are they the spark your organisation might need? They could very well be. Innovation audits serve as a powerful tool used to evaluate and enhance your company’s innovation capabilities.
In a dynamic business landscape where staying ahead is the key to survival, innovation audits provide a comprehensive assessment of your innovation processes, identifying areas for improvement and uncovering hidden opportunities for growth.
So, how do you know when you should be carrying out an innovation audit? Knowing this can be the catalyst that propels your business to new heights of success and competitive advantage.
Step One: Why Should You Care About Innovation Audits?
An innovation audit is the compass that guides your organisational ship through the stormy seas of the marketplace. Without it, you might not have a clear picture of how your company’s innovative efforts are stacking up against the competition or how effectively you’re leveraging your own capabilities.
Innovation audits provide a methodical examination of your business’s innovation strategy, processes, culture and capabilities. It helps you uncover your hidden strengths and diagnose any weak areas that could use a boost. In other words, it helps your organisation to stay in tune with the latest trends and ahead of the curve.
It’s like your annual health check-up or an M.O.T for your car, but for your business innovation strategy. It might feel unnecessary when you’re in all good health (or rather when your business is doing well), but that’s precisely when you need it the most.
So why should you sit up and take notice of innovation audits? Here’s why.
1. Identify The Gaps
An innovation audit allows you to compare your strategy and capabilities with your desired innovation objectives and outputs. It’s like the red thread that links your current state with your future ambitions. By identifying this gap, you can make effective plans to bridge it.
2. Boost R.O.I
Innovation without assessment is like shooting in the dark. It’s a well-known fact that not every idea turns into a commercially successful innovation. By conducting regular audits, you can track the performance of your innovation efforts and direct resources towards ideas that are more likely to generate high returns.
1. Define Your Innovation Goals
The first thing you want to do is establish what innovation means to your business. Is it about disrupting the market? Creating a unique product? Or is it about increasing efficiency? Once you’re clear on your goals, you’ll be better equipped to measure your current efforts against them.
2. Take Stock of Your Current Innovation Landscape
Ask yourself, “where are we right now in terms of innovation?”. Understanding your current state involves an objective assessment of your business’s innovation capabilities, culture, and processes. This step will give you an overview of where your business stands and highlight any areas that need improvement.
3. Conduct an Innovation Health Check
This step involves digging deeper into the key areas that were identified during the stock-taking exercise. For instance, you could look into how many innovative projects have been launched recently, their success rate, or how well they align with your strategy.
Remember, this isn’t a witch-hunt for failures; it’s an opportunity to understand the efficiency of your innovation engine and ways to fine-tune it.
4. Benchmark Against The Best
Compare your business with leading innovators within and outside your industry. This will give you a broader perspective on how you’re doing and could serve as a source of inspiration for your own strategies.
5. Formulate An Action Plan
Based on the results of your innovation audit, formulate an action plan. Whether it involves bolstering your innovation culture, restructuring your innovation processes, or up skilling your team, ensure that the steps are concrete and actionable.
Innovation audits are not an option but an essential component of a dynamic innovation strategy. By providing a snapshot of your current innovation health and charting a clear roadmap for future efforts, they ensure that your business stays on track towards its innovation goals.
Conducting innovation audits might require an initial investment in terms of time and resources, but the rewards – boosted ROI, a rejuvenated innovation culture, and a sharpened competitive edge – are well worth the effort.
So, now that we have demystified the importance of innovation audits and provided a handy guide on where to start, it’s over to you. How about scheduling that much-needed innovation health check-up?
Remember, it’s not just about surviving but thriving in this fast-paced, ever-evolving business landscape. Keep innovating, keep auditing!
