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Creativity, Innovation & Design

Week 7: Factors affecting innovation and design thinking in organizations

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In this lecture we will explore:

What is innovation and design thinking? (definitions re-visited)

Factors that affect innovation within an organization

What is meant by a culture of innovation?

Strategies to develop a culture of innovation

How to make design thinking part of the innovation process in organizations?

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What is innovation and design thinking?

Innovation is the ‘successful implementation of creative ideas within an organization’ (Amabile et al. 1996, p. 1155)

Design thinking is ‘an analytic and creative process that engages a person in opportunities to experiment, create and prototype models, gather feedback, and redesign’ (Razzouk & Shute 2012, p. 330)

Image source: https://medium.com/swlh/https-medium-com-swlh-lean-innovation-how-to-develop-successful-products-today-b6237345a5f0

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Fortune’s most innovative companies in 2015

Rank Company
1 Apple
2 Google
3 Tesla Motors
4 Microsoft Corp
5 Samsung Group
6 Toyota
7 BMW
8 Gilead Sciences
9 Amazon
10 Daimler

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Factors affecting innovation within organizations

Structural variables

Human resource variables

Cultural variables

Innovation

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Structural variables

The structure of an organization can have a huge impact on innovation

Organic structure

Abundant resources

High inter-unit communication

Minimal time pressure

Work and non-work support

Image source: https://probonoaustralia.com.au/news/2018/09/australias-innovative-nfps-highlighted/

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Human Resource variables

The quality of the Human Resources within an organization affects its capacity to innovate

High commitment to training and development

High job security

Creative people

Image source: https://www.york.ac.uk/study/postgraduate-taught/courses/msc-human-resource-management/

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Cultural variables

An organizational culture that supports innovation is essential to fostering innovation within organizations

Acceptance of ambiguity

Tolerance of the impractical

Low external controls

Tolerance of risks

Tolerance of conflict

Focus on ends

Open-system focus

Positive feedback

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What is an organizational culture of innovation?

Organizational culture refers to the ‘shared values, principles, traditions and ways of doing that influence the way organizational members act’ (Robbins et al. 2015, p. 695)

An organizational culture of innovation refers to a company’s culture that is mainly focused towards innovation and developing innovative products and services

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Strategies to develop an organizational culture of innovation

Strategy 1: Set an innovation vision (set clear innovation aspirations)

Strategy 2: Develop and manage a superior innovation process

Strategy 3: Institutionalize innovativeness

Strategy 4: Benchmark against best competitors

Strategy 5: Drive innovation from the top

Strategy 6: Develop commercialization skills

Strategy 7: Focus on the customer

Strategy 8: Take a team approach

Strategy 9: Become obsessed

Strategy 10: Develop a passion for change

(Jagersma 2003)

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How to make design thinking part of the innovation process in organizations

Begin at the beginning

Take a human-centred approach

Try early and often

Seek outside help

Blend big and small projects

Budget to the pace of innovation

Find talent anyway you can

Design for the cycle

(Brown 2008)

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Summary

Innovation and design thinking is essential for contemporary organizations

Structural variables, human resource variables and cultural variables impact on innovation within organizations

Organizations must develop their own cultures of innovation

They need to follow certain strategies to do this

It’s important to align design thinking into the organization's innovation process

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References

Amabile, TM, Conti, R, Coon, H, Lazenby, J & Herron, M 1996, ‘Assessing the work environment for creativity’, Academy of Management Journal, vol. 39, no. 5, pp. 1154-1184.

Brown, T 2008, ‘Design Thinking’, Harvard Business Review, vol. 86, no. 6, pp. 85-92.

Jagersma, PK 2003, ‘Innovative or die’, Journal of Business Strategy, vol. 24, no.1, pp. 25-28.

Murray, A 2015, 50 most innovative companies, Fortune, viewed 10 April 2019, http://fortune.com/2015/12/02/50-most-innovative-companies/

Razzouk, R & Shute, V 2012, ‘What is design thinking and why is it important?’, Review of Educational Research, vol. 82, no. 3, pp. 330-348.

Robbins, S, Bergman, R, Stagg, I & Coulter, M 2015, Management, Pearson, Australia

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