As organization grows, it shows inability to scale, i.e. to deal with projects at large numbers
In response to this supply demand gap, company develop procedures to deter validly poorly conceived project
Yet, competition and internal innovation pressure mounts. The company has more division and managers, each identified solidly innovative ideas that if pursued, will maintain the company’s innivative edge. Competitors keep copying the company’s innovation and creating their own that the company can copy in return.
Innundated, the company senior management devise ever more sophisticated method to limit the number of projects.
Capital is a valid limitation, but human attention span and time limit is a more invisible and yet dangerous roadblock.
So, what the company do is basically, limiting their rate of innovation to what the existing innovation infrastructure can handle
As company goes larger, it needs to consciously identify and invest in innovation infrastructure.
What are the components of innovation infrastructure:
– sufficient number of authority points to properly handle mounting number of projects
– innovation system to balance decentralization of authority with centralize constraints such as capital and resource
– procedures to ensure a proper project gate keeping while balancing with maintaining a healthy rate of innovation
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