Estimated reading time: 6 minutes

It’s easy to be seduced by the latest ‘innovation’ fads. But it’s important to focus on aligning innovation with core business goals and customer needs. Doing so will protect teams from the innovation trap and achieve long-term success. A lot of this essay is inspired by Christen’s book ‘The Innovation Trap’.

The Innovation Trap

Mansions in the Metaverse and AI-powered self-driving cars are faraway pipe dreams. And so is a land where banks are replaced by blockchains running on customer hardware. Businesses grow and die not on the hottest trends, but at the ‘bottom line’. The victors are those who successfully use innovation to meet their core business meeds. As companies chase the next big thing, they get lost in a jumble of buzzwords and expensive fads. They forget to ask: Does this actually help our customers and make us money?

Take the example of Gamestop, the video game retailer that gambled $100 million on an NFT marketplace in 2021. A year later, the project was bleeding cash and eventually shut down two years later, with negative revenue to show overall. What went wrong? They mistook hype for need. They neglected their core business for a risky trend with no clear value proposition. They forgot to ask: what is the real need of our customers? How are we creating value for them through this project?

And this wasn’t an isolated incident. I have been helping a non-profit engineering accelerator with product management for the last two years. I have seen several startups pivot to the latest exciting technology without clear purpose. In the end, the tend to mostly regret the decision, even if they end up succeeding.

And it’s not just the small startups. Companies of all sizes and fields fall in the trap. They waste resources on innovation for the sake of innovation. They neglect to align it with their goals and customer needs. Such misalignment leads to:

• Wasted capital: Throwing money at unproven trends instead of investing in core strengths. NFT’s on IOT Blockchain, anybody?
• Missed opportunities: Ignoring innovations that could benefit the business. I could have been a Metaverse millionaire!
• Reduced profitability: Diverting resources from strength areas to fringe projects.

How can businesses avoid this innovation trap? Here’s my answer: political savvy, not blind trend-chasing. It’s about understanding the complex dynamics of your organization, industry, and customers with diplomacy and skill. Companies need politically suave leaders to thread the needle.

What’s political suaveness, and who’s a politically suave leader? Well think of a politically suave leader not as a scheming manipulator, but as someone who can:

• Navigate complex situations: They understand the shifting needs of customers, partners, and investors.
• Anticipate market changes: They see emerging trends and identify true customer requirements. This is often different from perceived requirements.
• Balance competing demands: They prioritize long-term growth while addressing short-term needs.
• Communicate effectively: They package the value-generating deliverables with the shiniest bells-and-whistles, satisfying both the actual needs and perceived needs. Couch your boring database replacement in the latest buzzwords. They giving you what your business needs, a tech update, while providing your stakeholders with the confidence that you’re moving in the right direction.

However, such leaders can’t exist in vacuum, they need organizational support and infrastructure. Businesses need to focus on strengthening themselves in the following ways to empower such leaders.

• Conduct thorough market research: Don’t rely on hype; understand where value is generated. Don’t ask customers for their needs, see their needs.
• Encourage interdepartmental Work: Break down silos and share insights across teams.
• Allow employees to explore: Encourage an innovation mindset to identify relevant technologies.
• Develop a clear innovation pipeline: Evaluate ideas, assess viability, and invest wisely. Have a clear vision of what your innovation goals are.
• Continuously monitor and reassess: Track progress, adjust strategies, and communicate openly.

So, does aligning innovation and business needs guarantee success? Nope. Here are some potential downsides and limitations to consider:

Downsides and Limitations of Alignment

• Missed Opportunities: A focus on immediate business needs might lead companies to overlook disruptive innovations. Revolutionary changes could be missed. Sometimes, the biggest risks yield the biggest rewards.
• Resistance to Change: Aligning innovation and business requires challenging the status quo. This can meet resistance from entrenched interests who prefer comfort over disruptions. Think of the middle management who might feel like they’re on notice.
• Measuring ROI: Quantifying the return on investment (ROI) of innovation is tricky. It’s not always about immediate profits, but rather building long-term value and adaptability.
• Market Shifts: Aligning with current needs is important, but unforeseen market shifts could make your plan irrelevant. Stay agile and prepared to adapt.

So how do you adapt your organization to be more in alignment with business needs?

• Assess your organization’s current practices. Are innovation and business needs aligned? If not, what steps can you take to bridge the gap?

• Industry Leaders: Champion political savvy within your organizations. Encourage open communication, interdepartmental collaboration, and regular market trend reassessments. Understand the importance of a well-targeted PR campaign and learn to leverage it at the right time. A savvy leader can:

  • Create a culture of open communication where ideas can flow freely across departments.
  • Break down silos and encourage cooperation between teams with different expertise.
  • Regularly reassess market trends to identify new opportunities and challenges.
  • Develop a clear and enticing narrative that explains how innovation aligns with business goals.
  • Use PR to generate positive buzz and build trust with stakeholders.
  • Achieve real business needs by using innovation tooling as a PR tooling where necessary to sell the unphotogenic parts of change.

By adopting a politically savvy approach, you can ensure that innovation works for you, not against you. While it may be tempting, don’t be seduced by the latest fads. Focus on aligning innovation with your core business goals and customer needs. This approach will help you avoid the innovation trap and achieve long-term success.