Tackling a main corporate “Innovation Blocker”

When we talk about innovation culture, the first thing that comes to mind is a work environment where people can develop their ideas. To hear more about this topic, I would like to share amazing insights from Erik Wirsing, Vice President of Global Innovation at DB Schenker, the latest guest on the Navigation of Ingenuity podcast. 

What is Innovation Culture? 

Innovation culture is all about bringing new knowledge into the organization. As Erik pointed out knowledge has to be shared among the people, let them learn something new, and encourage them to create new ideas and solutions. 

One thing DB Schenker is proud of is their innovation department – a place where they bring experience to the right people, train them, empower them and let them be creative. When you create an environment of constant change, networking, agility, and collaboration, employees’ motivation brings increased productivity and higher levels of output that will help organizations reach their important goals.

The biggest obstacle to innovation is having too much guidance and instructions that have to be followed. Put all this aside and give employees the freedom to work independently. This is the recipe that makes DB Schenker successful in their industry – logistics. When empowering team members it is important to provide them with resources, funds, time, and place but keep in mind that this might fail. 

How do you encourage your team to be innovative?

Team members and employees need to feel confident and comfortable to express their thoughts. Therefore the right communication style is the answer to this question. 

We also have to mention the importance of team diversity since their varied backgrounds and experiences allow them to bring broader ideas and new perspectives. Curiosity, openness, and emotional intelligence are crucial when it comes to empowering. It’s not all about monetary incentives and the best way for empowering your employees is to enable them to reach their full potential. Just like Erik said: “Help them to shine”. Erik tells us the story of how DB Schenker’s sparked innovation within their organization:

When Eric joined the company, he was responsible for global innovation and all the innovative activities. Since he had no idea how to run this globally, one of his team members came up with the idea of an innovation magazine that collects stories from colleagues and their experiences. Since everyone wanted to be a part of this magazine, the idea was very well accepted and the storytelling approach got more popular over the years. With time, the sales team recognized the value of the innovation magazine for their customers, which resulted in the new format – an external magazine. With the approach of bringing people together and promoting their success through the “Innovation Champion of the month” column, DB Schenker continues to be a leader in supply chain management and logistics solutions.

What was your last innovation?

As Erik stressed, it is not about establishing something completely new but adopting from different industries. 

His last innovation was not planned, it just happened accidentally at one event he participated in. Talking to one of the attendees who work in the roofing industry he found out about a special paint which keeps the roofing firm. Erik realized a potential use for the paint and adopted it in the logistics industry. As a result, we have a transport vehicle whose floor is coated with this paint to prevent the movement of cargo while driving. Now customers are using it for the forklifts. Such an easy and spontaneous idea provided benefits for different industries.

Creating the next groundbreaking innovation

We also asked Erik if there is one thing he wants to invent or see invented, what would it be? This is what he said: having one device (ie smartphone) with the possibility of the screen adjustments just like we do with Windows on the PC. He wants to stop traveling with his phone, tablet, and computer, one device that can expand or contract based on the use. Other great things he would like to see in the future are self-driving vehicles and space tourism available for everyone. 

Bringing different innovative minds together and being able to manage a big global innovation culture it is important for all the team members to know that within organizations there are people who are going to support their “crazy ideas”. Structured organization, developing a business model, and taking into consideration customer feedback is the foundation for tackling a main corporate “Innovation Blocker”. 

We thank Erik Wirsing for being a special guest on the Navigation of Ingenuity podcast. With certainty, I can say we all learned a lot from his experience in the innovation world. To listen to the episode please visit: https://bluecallom.com/podcast/

Authored by: Tanja Sopcic

Rethinking innovation from the ground up.

Enterprises around the world have been challenged with becoming genuinely innovative, trying to elevate their effort from improvement to innovation. With over 90% of groundbreaking innovation coming from startups, enterprises are trying to understand what startups do differently. Turning an enterprise into a truly innovative business has been globally one of the biggest challenges across all industries. It is time to completely rethink the act of innovation from the ground up – starting at the very top. Innovation is a CEO mandate because only CEOs together with their board can make the important decisions about TIME, CAPITAL, and STRUCTURE.

Time

The time it takes to get to new innovation. This is a paradigm shift we all need to be aware of. With the new data and processes, we know that in five years from now, you will need to completely start from scratch again, referred to as the innovation continuum. Think of discovering the next innovation opportunity, and find again new ways to satisfy customers. It is a continuum for building one innovation after the other and becoming a Generation Project that is set forward for the next leadership generation. Each time it takes five years to achieve broad market acceptance. That means you have a maximum of five years to innovate and compete or be out. The new mantra: innovate fast or get out. Once that innovation hits the market, there is a five to ten-year timespan, from idea to recognized market leadership. Important long-term decisions to continue investing in those innovations and the innovation continuum require the CEO and their board.

Capital

The capital market has radically changed in the past ten years. Companies such as Apple, Facebook, Google, Microsoft, Tesla, and Uber were considered overhyped but then achieved global market domination. Competitors could not compete because they did not know why those companies took over their market share. It is becoming more and more difficult to catch up with the market. Conventional companies are trying to fight their competitors with legal attacks, just because they don’t know how to compete with their innovation. The old game was competing with new improvements, which no longer works. Capital markets, its savvy investors, analysts, and fund managers have long understood that fighting innovation, when not even knowing how innovation works and how much is required to invest, is a very bad position to be in. Hundreds of millions of investments are necessary to get an innovation from early concepts to success in a global market. Successful innovations consumed more than $100 Million in funding. Unicorns, per definition, consumed roughly a billion dollars, some reached into two-digit billion-dollar investments. Only the CEO together with the CFO and the board can make financial commitments of that magnitude.

Structure

The pressure to innovate has risen dramatically in the past 10 years. Managers look at startups and think they can learn how innovation works. Innovation centers ended up becoming kindergarten-like playgrounds, an esoteric group of “thinkers and tinkers’’, hunting for the inspiration they hoped would come their way. Random experimentation and hoping to find a great idea never leads to groundbreaking innovation. Innovation is an outcome – not a desire. Without exception, the most innovative solutions were created to solve a specific and very present problem. Innovation success is not about an idea creation team and taking it to market by the existing organization. It is about creating an innovation center independent of the corporate organization that is responsible for identifying a viable innovation opportunity and bringing it successfully to market. This independent innovation center requires a highly diverse team of exceptional innovation talents that will get the job done. The team and a decision to create a separate innovation center independent of the corporate organization can only be made by the C-Level.

 

In conclusion, the innovation mandate is the strategic decision from the CEO to become innovative with certain guidelines regarding the long-term goals and designated audience for the innovation. The mandate is typically addressing innovation management and other corporate management functions with time, capital, and structure all taken into consideration.

 

For more information and how to set innovation in motion, download the latest whitepaper, “Innovation is a CEO Mandate.”

Enterprises around the world are struggling to create groundbreaking innovations, watch the latest Innovative Minds Event from Thurs. Oct. 21 “Innovation is a CEO Mandate” and hear from leading organizations about their struggles and why they feel it requires a top-down approach to be successful. Available to watch here.