- Innovation projects should be managed differently than ordinary ones.

March 18, 2010 at 2:17 pm | Posted in Innovation | 1 Comment
Tags: financial services, Innovation, Insurance, strategy

The understanding of how to manage an innovation project is not always so clear.

Joyce Wycoff, in an issue of the InnovationNetwork’s Heads Up! e-newsletter, provides some important insights. The objectives at the beginning tend to be loosely defined. Team is more diverse and should be strongly supported even if a failure occurs. A wise risk management will help to learn fast, and change the direction to more attractive options, having a decision process that limit hazard and conflict. Funding is very important. Innovation projects should be sold to sponsors committees. Then, the commercial launch is not always efficient, which leaves space for more profitability.

Naturally, you will say it is a “tarte a la crème” for consultants, with great opportunities to assist their clients. In reality, executives see the value of the consultants more as a cost / a resource than a leverage for getting more value from the innovation project.

In the last 2 months, I had the opportunity to study innovation processes in few large insurers. Risk management dimension is generally neglected, results obtained could have been definitely better. Gathering clever and creative people is mandatory but not sufficient.

Any comment or experience on this issue?

Patricia Egard
Founder of Ever Up, Consulting in Strategy and Entrepreneur
For continuous profitability in Financial Services