Creating the foundation for Sustainable Innovation

In 2011, Marc Andreessen famously proclaimed that ‘Software Is Eating the World’. New software-driven products and experiences are impacting virtually every industry we can name – from retail (Amazon) through cable TV and movies (Netflix) and music (Spotify) to hospitality (Airbnb and Marriott Homes and Villas).

We’re seeing a similar trend manifest across many ASEAN markets too. For instance, DBS is trailblazing the digital way in banking, Ascend Money’s TrueMoney e-wallet is driving financial inclusion across the underbanked in Southeast Asia, while Grab the ride-sharing giant has become a synonym for “taxi” in many markets across the region and have also branched out into payments and food delivery. I would argue that software is actually feeding the world.

The success of these digital organizations indicate that innovation is what keeps the wheels of modern society running. In fact, constant innovation has become de rigueur in the current economy. As consumer demand cycles get shorter and shorter, businesses are pushed to continuously deliver innovative solutions to remain relevant.

As the pace of business accelerates, we see more and more companies looking for answers around the following - How do you collaborate with customers, vendors, and partners to keep your organization on the cutting edge? What kind of organization matches the speed and complexity that businesses must master—and how do you build that kind of organization? How do you inspire your people to greater energy and creativity?

Harnessing the power of open source to enable continuous innovation

As digital transformation reshapes industries, companies of all shapes and sizes are rethinking their approach to innovation. A radical shift in learning and getting work done is required to help them compete more effectively.

Today, open source is powering innovation in every aspect of technology, in areas such as cloud computing, containers, big data, mobile, IoT and more. Open source enables a new way of work that is necessary to enable continuous innovation.

The traditional model of “plan, prescribe and execute” is no longer relevant today. What is more important for businesses today is empowering people to initiate and iterate change rapidly from the ground up. Creating an environment conducive to responding quickly in today’s fast-paced, and sometimes-disruptive world.

Spotting the troubling signs of sustaining innovation

Many of us have heard of “writer’s block” but how many are familiar with “innovation fatigue”? Just like the disastrous consequences the former affliction can have on the livelihood of professional authors, the latter can spell trouble for commercial enterprises given the importance of continuous innovation to their survival in today’s environment. Generally, innovation fatigue can happen when the foundations for continuous innovation is not conscientiously built into the DNA of the business, and innovation is sporadic and dries up because it takes a mammoth effort to keep it going. But how can business leaders reshape their DNA to address this?

How can business leaders respond to such a situation?

Leaders need to rethink the way they organize the company to get work done. They should create the context and provide conditions to enable their people to innovate and do their best work by focusing on the three primary pillars that have been foundational in open source communities:

1. Configuring for constant change. To enable this, leaders need to ensure that processes in organizations are focused on experimentation and learning instead of structured long-term planning. Also, organisational structures should focus more on the end customer rather than on specialisation and efficiency.

2. Enablement. This requires providing information and pushing the decision-making power to employees closest to the impact of the decisions.  

3. Engagement. This requires organizations to embrace new techniques to motivate the right behaviours. They should focus on enabling teams and individuals to collaborate to get their work done.  

As an open organization, Red Hat firmly believes in meritocracy. We believe in a culture rooted in open exchange, offering Red Hatters support and an opportunity to grow professionally. Any organization with innovation at the core of its value creation can benefit from the open organization principles of transparency and participation. I’m curious to find out your thoughts on this. How are you enabling your organization to continuously innovate while preventing innovation fatigue?