The management of innovation is the management and organization of resources in order to generate new knowledge or technological ideas for the development of new products. At the enterprise level, many organizations or startups are precisely looking for the application of new methodologies that allow the agile development of products, processes or services, and the improvement of existing ones. For them, agile methodologies are one of the fastest growing strategies for the promotion and consolidation of innovation. How have they borned? How do they take part in an innovation plan? How can they be more effective?
Spanish SMEs are focusing on innovation as an engine for the survival, development and profitability of their business model. Aspects such as economic recession, globalization or the appearance of new competitors in emerging countries have fueled this need until it has become a leading instrument of management.
For their part, public administrations have also taken a leading role in promoting and supporting business innovation processes. In fact, more and more aid or funds require the company to create a strategic or technological innovation plan.
What are agile methodologies and where are they from?
Agile methodologies bring different tactics for the fast development of projects that require speed and flexibility. For this reason, its adoption is based on the need to respond quickly to the demands of the markets.
The origin of the 'Agile' methodology concept dates back to the 1930s, when physicist and statistician Walter Shewhart, of Bell Labs, began implementing product and process improvement cycles (Plan-Do-Study-Act). Shewhart then taught this iterative and incremental development methodology to W. Edwards Deming, who used and popularized it in Japan in the years following World War II. Later, Deming was hired by Toyota and trained hundreds of his managers until developing an unique model of Lean Manufacturing, an inspiring reference in the business world and innovation management.
Siguiendo el curso de la historia, las metodologías ágiles han tenido gran aceptaciónen la gestión de proyectos relacionados con software o IT, donde en los últimos 20 años se han desarrollado, probado y aplicado estrategias de innovación sistemática bajo el apellido ‘Agile’. Entre estas metodologías destacan: Scrum, Kanban, Lean Startups, Dev.Ops y Despliegue Continuo.
Following the course of history, agile methodologies have been widely accepted in the management of projects related to software or IT, where in the last 20 years, systematic innovation strategies, under the surname 'Agile', have been developed, tested and applied . Among these methodologies, some should be underlined: Scrum, Kanban, Lean Startups, Dev.Ops and Continuous Deployment.
See Manifesto for Agile Software Development
At present, the concept has evolved to the point of talking about 'Agile Innovation', a term that advocates the appropriateness of this strategy as a bridge towards the improvement of innovation processes in any industrial setting.
Agile methodologies in technological and scientific innovative projects
One of the most important and critical aspects of a Strategic Innovation Plan is that it were actionable. Its drafting aims to mark the main guidelines in R&D and should be sufficiently operational so that it can fit into the day to day of the organization.
A large number of companies have a business plan, but very few develop an R&D or strategic innovation plan. Those that have done it tend to a clear objective: to construct a guide document that helps to face new projects with an innovative vision and aligned with the business objectives.
More information: Project Management of R+D+I and normative
Which strategies are behind an innovative plan?
A Strategic Innovation Plan contains a compilation of innovations made; a definition of planned innovations; an internal analysis of the work done so far; strategic decisions in the short and long term, and operational information as managers, planned investment, metrics or strategic alliances.
As you can guess, the Strategic Innovation Plan must include organizational and project management aspects in order to optimize its results. In this sense, and as Darrell K. Rigby, Jeff Sutherland and Hirotaka Takeuch point out in their article Embracing Agile, published in Harvard Business Review, most companies operate in highly dynamic environments; where not only new projects or services are developed, but also innovates in functional processes. Although this need exists, most projects are undertaken without following a fast and efficient methodology, and this operating system puts a brake on agile innovation.
You may be interested in: Startups Resource Kit
To understand the application of 'Agile' in innovation plans or innovation processes of the company, the authors mentioned above point out the following considerations:
1. Apply Scrum Methodology
It is a way of working that emphasizes the creation of creative and multifunctional work teams to solve complex problems. To seize an opportunity, the organization forms and empowers a small team, usually formed by three to nine people. They work independently and have the skills to complete their tasks.
The owner of the innovation initiative or project has a more entrepreneurial, business profile and is ultimately responsible for delivering value to the client and for coordinating key stakeholders. For team management, the owner of the initiative does not tell its members who should do what or how long it should take each task. The team will be responsible for creating a simple roadmap, where the most complex tasks are divided into small modules with very defined times. Then, thanks to collective intelligence, work versions will be built in short blocks (about a month), known as Sprints.
What are the great advantages of Scrum?
- The increase of the productivity of the equipment and the satisfaction of the employees. Eliminating redundant meetings, repetitive scheduling, and excessive documentation improves day-to-day business.
- Increased customer satisfaction: agile methodologies are better adapted to changing priorities within projects, allowing products to be introduced in the market more quickly, effectively and with lower risks.
2. Understand where agile methodologies do not work within the company
'Agile' is not suitable for any business model or process. Its application is less effective in routine operations such as plant maintenance, purchasing or accounting management. Instead, it is highly valuable in many functions related to product developments: marketing projects, supply chain challenges, resource allocation, etc.
3. Introduce agile methodologies from less to more
It is not desirable to introduce innovations in a massive way in the organization. In the application of agile strategies for the company, you can bet, first, by the IT department, where software developers are more familiar with these principles. Then, with the experience of the pilot project, this tactic would be scaled to other departments, where some member of the software team could act as a trainer within the organization.
4. Support work teams to customize their own practices
The 'Agile' methodology is based on the creation of more or less autonomous teams which, as a result of continuous work in various projects, can develop their own tactics. Stable work or research teams tend to be more productive.
5. Ensure that management teams are aware of and apply this method of work
6. Avoid threats that affect teh correct development of agile innovation
- All members of the organization must work on the same line of priorities of the company, although not all teams responsible for projects are using agile processes.
- The emergence of new projects should not result in new structures within the work teams, but in an exchange of roles.
- Decision-making must be centralized in a single person.
- Collective intelligence is above the competencies of each member. Before replacing a member, it is necessary to reflect if it is possible to redefine his/her functions, for example.
- Leadership should be based on questions and not on orders.
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References:
K. Rigby, D., Sutherland, J. y Takeuchi, H. (05, 2016). Embracing Agile. [Online article]. Obtenido de https://hbr.org/2016/05/embracing-agile
K. Rigby, D., Sutherland, J. y Takeuchi, H. (20,05,2016) The Secret History of Agile Innovation. [Online article]. Obtenido de https://hbr.org/2016/04/the-secret-history-of-agile-innovation
Denning. S, (23,07,2015). Agile: The World's Most Popular Innovation Engine [Online article]. Obtenido de https://www.forbes.com/sites/stevedenning/2015/07/23/the-worlds-most-popular-innovation-engine/
Repensadores.es (20,05,2015). Plan de innovación para empresas: un mapa de acción. [Online article]. Obtenido de http://repensadores.es/2015/03/plan-de-innovacion-para-empresas-una-mapa-de-accion/
Asociación de la Industria Navarra. (2008) Guía práctica. La gestión de la Innovación en 8 pasos. Obtenido de http://www.fundacionede.org/gestioninfo/docs/contenidos/_8pasosinnovacion_.pdf