The “Seven Deadly Sins” of Innovation Management

“Numerous industrial companies are experienced in adapting and further developing their products, but they fail to innovate beyond this, for example when opportunities for new business models arise or when, as is currently the case in the energy crisis, the basis of the existing business model may be at risk. In times of disruption, however, strategic innovation management becomes even more important. In collaboration with my students from the Technology Management Executive MBA at RWTH Business School, I have uncovered 'seven deadly sins' that companies should do their utmost to avoid,” explains Prof. Dr. Frank Piller, professor of Technology and Innovation Management at RWTH Aachen University and Academic Director of the Executive MBA at RWTH Business School:

1. Sloth

“We're doing fine, so why should we change our business now? We are the world market leader in our segment, after all.” This frequently encountered view causes companies to become sluggish, and competitors overtake them with their innovations. Organizations that have been successful for a long time, in particular, are often too slow in implementing disruptive ideas. Sloth is especially dangerous in connection with the second deadly sin.

 

2. Pride

Who makes decisions on innovation initiatives? In companies, it is usually those who have been there the longest. However, those who have been part of an organization for only two weeks should have as much influence as long-time employees. The problem is: In production management, companies typically have fixed structures in place, and intensive participation is the order of the day, but unfortunately, innovation management cannot be taken for granted in many companies. It is therefore a sign of a certain arrogance and leads to a loss of opportunities not to integrate new knowledge and expertise into these processes. Likewise, some companies display arrogance towards their customers – for example, when they do not take up feedback from the market or ignore suggestions for improvement from customers.

 

3. Envy

“If I didn’t think of it, it can’t be any good.” There is a catchphase for this idea: “Not invented here”, which is a sign of envy, the third deadly sin. Yet innovations often arise from the combination of existing knowledge with other functions and properties. Without this approach, we would not have the iPhone, for example. Nevertheless, many decision-makers find it difficult to take up good ideas simply because they come from outside or from someone else. While most would deny this, studies we conducted at RWTH confirmed that this mindset implicitly influences many decision-makers in companies.

 

4. Anger

Sometimes companies get in their own way when it comes to innovation. Anger arises, for example, when other organizations provide groundbreaking ideas how to make products better. Some enterprises prefer to spend money on patent disputes and sue others instead of taking advantage of the opportunities provided by open ecosystems.

 

5. Greed

The mortal sin of greed manifests itself in a widespread way of thinking: Companies often prefer to possess knowledge only for themselves instead of sharing it with others – and thus prevent innovation from happening. The applications of 3D printing really exploded after the basic patent was released after 20 years. Patents make sense, of course, but it turns out that it is often more about owning than sharing and developing. However, in today's business models, in times of digitalization and the platform economy, this is an outdated mindset.

 

6. Gluttony

Ideas are the fast food of innovation. But initially ideas generate costs, so the real goal is to get ideas that can be turned into real innovations. I therefore advise avoiding what can be termed idea gluttony. After all, so many ideas and proposals from a company's internal idea management cannot be implemented at all, which sooner or later leads to frustration. Instead, structures are needed to screen ideas in a fast and unconventional way, to filter out promising ideas and to think in an implementation-oriented way.

 

7. Lust

Finally, the seventh deadly sin describes the state when innovation management becomes an end in itself – almost like a ball pit for managers. Often, companies set up their own innovation labs, for example. But here’s a mistake: Such “playrooms” are completely detached from day-to-day business: They are very busy, but often nothing much comes of it. Stand-alone innovation labs often fail because they are too elaborate, and they’re not sufficiently – or not at all – integrated into the company.

Strategic innovation management is something that needs to be learned

Avoiding the “seven deadly sins” requires strategic innovation management. You need much more than a research and development department.

How such a culture is brought to life is something you learn in the Technology Management Executive MBA. In this part-time professional education program, we impart sound management know-how with a focus on technology management, innovation management, and digitalization, but also have a focus on developing of one's own personality in modules such as negotiation techniques, change management, and leadership. We teach people how to make business decisions about future technologies and actively drive digital transformation. It is an innovative postgraduate program at the intersection of business, people, and technology.

– Author: Julia Severins