If J.K. Rowling were to write a book about the corporate world, the innovation function would undoubtedly be one of its rarest Fantastic Beasts. As insiders at ITONICS — where we live and breathe innovation alongside our 500+ customers worldwide across industries — we’ve witnessed firsthand the delicate interplay between fantasy and reality. We’ll share the “things we can’t tell our clients” — don’t worry, it’s not like we’re breaking an Unbreakable Vow. It’s about diving into the nuanced realities critical for building a systematic innovation approach that creates unquestionable value.
1. You think darkness is your ally?
One of the first things we often want to tell clients is this: innovation is not a straight line. It’s chaos. It’s darkness. The whole point of innovation is to navigate through it, to make darkness your ally, to rise like the Dark Knight. As Jeremiah Gardner explained in a keynote, innovation is like cave diving: it’s pitch black, you don’t know what you’re going to discover, and you need a gold line — your innovation mandate — to guide you. You must have a clear vision of where you’re heading and what success means. Fast, evidence-based decision-making is your competitive advantage.
At ITONICS, we push you to clarify your mandate, embrace uncertainty, and build a system to identify growth opportunities, make evidence-based decisions, and learn quickly to outperform your competition.
Example: The Automotive Shift
A leading automotive manufacturer set out to develop a new electric-vehicle line to meet changing consumer demands. Traditional decision-making processes blocked the team’s ability to ship, learn, and iterate quickly. What could have been a swift pivot turned into a prolonged struggle, leading to project cancellation.
It’s like Chewbacca trying to tell Han Solo to fly the Millennium Falcon on a straight path within the asteroid field — the straight path is not necessarily the right one!
2. “Do or do not, there is no try” — Yoda was wrong
Another hidden truth we grapple with is the paralyzing fear of failure that grips many organizations. It’s one thing to advocate for a culture of experimentation, but it’s another to see leadership genuinely embrace this ethos. Many companies preach risk-taking, yet when it comes time to invest in bold ideas, hesitation creeps in.
At ITONICS, we believe fostering a safe environment for experimentation is crucial. Failure isn’t the end but part of the iteration process. For example, 199 Ventures reinvests 20 percent of its returns in founders who failed, emphasizing that failure is part of any successful journey.
Did you know that Roger Federer won only 54 percent of the points he played throughout his career? The tennis GOAT lost nearly every other point, yet he achieved an 80 percent win rate and 103 ATP titles, including 20 Grand Slams.
Example: The AI Initiative
A prominent tech firm launched an initiative to explore AI applications in customer service. When early prototypes fell short, leadership withdrew support. Instead of viewing these failures as learning experiences, executives became risk-averse. They shelved the project, missing out on a potentially groundbreaking solution.
In the words of Tony Stark, “Sometimes you gotta run before you can walk.” But if leadership pulls the plug every time a prototype stumbles, how can innovation ever take flight?
3. The Politics of Innovation
In large organizations, innovation can often be stifled by internal politics. Different departments may have competing priorities, and innovation initiatives can quickly become collateral damage in power struggles.
Successful innovation management requires aligning the interests of all stakeholders. This is the way, as the Mandalorians would say.
Everyone across the company needs to be on the same page about the innovation mandate. They should know the answers to the following questions:
- What’s in your scope—and therefore, what’s not?
- What’s the expected value creation?
- What’s the time horizon?
- What resources are at your disposal?
Transparency and collaboration across departments are essential at every step of the innovation process, much like a sports team, where every player knows their role.
Example: The Departmental Standoff
In a global consumer goods company, the R&D department wanted to explore biodegradable packaging. However, the marketing department feared confusion for customers. As both teams dug in their heels, the initiative stalled, becoming a battleground for departmental priorities.
This is the corporate version of ‘the dark side of the Force’ — tempting and easier, just like business as usual.
4. The Burden of Expectations
Undefined or unreasonable expectations weigh heavily on innovation teams. Leadership often sets lofty goals based on traditional metrics — revenues, gross margin, or EBITDA (earnings before interest, taxes, depreciation, and amortization) — without considering the risk profile of an innovation portfolio. This can lead to poor decisions and a classic trap: losing focus on the innovation mandate and instead delivering surface-level improvements to prove quick wins.
At ITONICS, we advocate for consistency and balance. Project-level KPIs must align with maturity, risk level, and ambition. Failing to do so can lead to prematurely killing promising projects while funding zombies. At the portfolio level, it’s crucial to maintain a balanced mix to achieve target allocations based on weighted risk, time horizons, and areas of focus.
So, go find this ultimate balance in the Force — like Rey and Kylo Ren forming the Dyad.
Example: The Retail Pressure Cooker
A major retail chain pressured its innovation team to quickly launch a new loyalty program to boost revenues. Unsurprisingly, leadership shut it down after a year due to poor performance. With appropriate KPIs — like app downloads and customer retention — the program could have significantly enhanced loyalty and revenue.
Conclusion: Embrace the Unspoken
Innovation is a journey filled with paradoxes, fears, and challenges that require organizations to navigate complexities with openness and resilience. At ITONICS, we are dedicated to helping our customers generate impact and turn innovation into a profit center. By embracing risk, celebrating failures, aligning stakeholders, and making evidence-based decisions with relevant KPIs, organizations can build a disciplined approach, maintain a clear vision, and navigate this thrilling adventure!
Jonathan Livescault is currently Managing Director ITONICS US at ITONICS.
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