Resources for Execution
In order to realize the promise of innovation, ideas need to lead to tangible results—and ultimately, higher revenues or lower costs. But, how do you make that link? Innovation implies you are changing your business (sometimes, starting a “new” business). So, think like an entrepreneur. Get the right resources in place and align them properly to make the most of your innovation. What are the resources you need?
Intellectual Capital: Knowledge is the most important competitive resource in today’s economy. The best way to think about knowledge resources is through the identification of the three types of intellectual capital:
- Human Capital: You need people, including supportive management, to filter out and identify the best ideas, research the appropriate markets, nurture innovation and move it along its path to completion. Do you need to add new people and/or skills to your team to get it done?
- Structural Capital: Beyond your ideas themselves, you also need processes to filter the best ideas from the not-so-good ones, and to follow the path to execution and production. What knowledge and/or processes do you need to deliver on your ideas?
- Relationship Capital: In today’s market, it is a rare company that is fully integrated. Most work through networks of suppliers, outsourcers and partners to deliver value. Many innovations address the same market but some open up new markets and opportunities. What should your network look like?
Physical Capital: Even in the knowledge economy, physical capital can be important. What do you need in terms of facilities, hardware, and equipment?
Financial Capital: In order to make the necessary investments to convert your innovation to profits, you will probably need budgets that encourage short-term innovation and long-term investment in its execution. Do you have enough money to see this idea through?
In order to deliver on good ideas, you need to think about the whole solution. Identify the resources you will need…and then get busy.
- Michael Oleksak 2006
