Difference between revisions of "Inside Out Innovation"
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''' | '''Introduction:'''<br> | ||
Post Great Recession and as a response to cost-cutting programs and demand for better efficiency within organizations, there is an increase in demand for internal/in house consulting. Nonetheless, by 2013 it becomes clear that internal consulting is not efficient and innovative enough, which forces major organizations to rethink the use of their inner resources. Centres of excellence and centres of innovation are built within organizations and employees are encouraged to contribute to sharing knowledge and expertise as well as innovating new ideas. With new efficient use of human capital, the demand for external consulting is minimized as numerous scenarios and innovative ways of thinking solves most potential problems before they even arise. Traditional consultants are now only required in case of unexpected and unforeseen problems. <br> | Post Great Recession and as a response to cost-cutting programs and demand for better efficiency within organizations, there is an increase in demand for internal/in house consulting. Nonetheless, by 2013 it becomes clear that internal consulting is not efficient and innovative enough, which forces major organizations to rethink the use of their inner resources. Centres of excellence and centres of innovation are built within organizations and employees are encouraged to contribute to sharing knowledge and expertise as well as innovating new ideas. With new efficient use of human capital, the demand for external consulting is minimized as numerous scenarios and innovative ways of thinking solves most potential problems before they even arise. Traditional consultants are now only required in case of unexpected and unforeseen problems. <br> | ||
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2010-2013:<br> | '''2010-2013:'''<br> | ||
In 2010, first signs of recovery from financial crisis and Great Recession were seen. Great Recession had also hit many companies hard, so cutting costs and long term outlook became the leverage issues for many strategy companies. Organizations started to look inside their structures to find new ways of growing and a push towards internal consulting occurred as a response to the need for more efficient and cheaper resources. Change management due to implementation of new strategies from within significantly contributed to the increased demand for inside knowledge. This further enhanced the growth of internal consultancy. Because of these reasons focus on internal consultancy shifted, so internal consultants were seen as specialists who possess a better knowledge and understanding of the company culture thus implement changes faster, monitor those changes and bear responsibility much quicker and more efficiently than outside consultants. In the times of increased access to the web, companies started to pay greater attention to security issues, so internal consultants got preferences became a preferred choice as they had also had access to much more intimate details than the traditional consultants., which as a result caused a push to higher security within the organizations.<br> | In 2010, first signs of recovery from financial crisis and Great Recession were seen. Great Recession had also hit many companies hard, so cutting costs and long term outlook became the leverage issues for many strategy companies. Organizations started to look inside their structures to find new ways of growing and a push towards internal consulting occurred as a response to the need for more efficient and cheaper resources. Change management due to implementation of new strategies from within significantly contributed to the increased demand for inside knowledge. This further enhanced the growth of internal consultancy. Because of these reasons focus on internal consultancy shifted, so internal consultants were seen as specialists who possess a better knowledge and understanding of the company culture thus implement changes faster, monitor those changes and bear responsibility much quicker and more efficiently than outside consultants. In the times of increased access to the web, companies started to pay greater attention to security issues, so internal consultants got preferences became a preferred choice as they had also had access to much more intimate details than the traditional consultants., which as a result caused a push to higher security within the organizations.<br> | ||
However, by the end of 2012, beginning of 2013, it became clear that internal consulting was not only inefficient but did not save much costs, lacked innovation and out of the box thinking needed to beat the competitors. Internal consultants were seen as reactive but not very proactive. Companies began searching for better alternatives for solving problems. | However, by the end of 2012, beginning of 2013, it became clear that internal consulting was not only inefficient but did not save much costs, lacked innovation and out of the box thinking needed to beat the competitors. Internal consultants were seen as reactive but not very proactive. Companies began searching for better alternatives for solving problems. | ||
By the end of 2013, majority of large corporations were exploring new ways of developing internal knowledge base.<br> | By the end of 2013, majority of large corporations were exploring new ways of developing internal knowledge base.<br> | ||
2014-2017: <br> | '''2014-2017:''' <br> | ||
Innovation communities were represented on a temporarily basis and involved people from geographical locations, departments, functions and were working on solving a wide spectrum of issues through physical and virtual meetings and brain storming sessions.<br> | Innovation communities were represented on a temporarily basis and involved people from geographical locations, departments, functions and were working on solving a wide spectrum of issues through physical and virtual meetings and brain storming sessions.<br> | ||
Through creating systems of constant top talent promotion, competitive rewards, cross-functional engagement and appearance of new interesting projects, organizations managed to attract top talent from top universities and consulting companies. These programs within organizations were based on a rotational basis, so people put their contributions into centres of excellence and then moved to positions of managing real businesses. | Through creating systems of constant top talent promotion, competitive rewards, cross-functional engagement and appearance of new interesting projects, organizations managed to attract top talent from top universities and consulting companies. These programs within organizations were based on a rotational basis, so people put their contributions into centres of excellence and then moved to positions of managing real businesses. | ||
2018-2020: <br> | '''2018-2020:''' <br> | ||
The transition from ideal but poorly managed internal advisory capabilities good intentions of internal consultants, , to efficient and truly innovative internal organisations did not significantly impact the traditional consulting model until 2017. The idea of innovative communities and centres of excellence were derived from the concept of internal consulting, however, it was not until 2018 that these inside organisations reached their potential. <br> | The transition from ideal but poorly managed internal advisory capabilities good intentions of internal consultants, , to efficient and truly innovative internal organisations did not significantly impact the traditional consulting model until 2017. The idea of innovative communities and centres of excellence were derived from the concept of internal consulting, however, it was not until 2018 that these inside organisations reached their potential. <br> | ||
The emergence of innovative communities and centres of excellence had two profound impacts that shocked the way traditional problem solving and innovation were managed and in turn altered the impact of traditional external consultants.<br> | The emergence of innovative communities and centres of excellence had two profound impacts that shocked the way traditional problem solving and innovation were managed and in turn altered the impact of traditional external consultants.<br> | ||
The first major impact was the timing of problem solving. Typically, organisations were constantly searching for the next profit and were not focused on addressing problems until they arose before. In such a model, problems were addressed as a consequence. The advent of innovative communities and centres of excellence turned this model upside down. Instead of addressing problems as they arose, the sole defining purposes of such inside organisations were to tackle potential problems before they impact the business. Essentially, the centres of excellence were providing almost any field expertise as well as constructing multiple future scenarios and determining a strategy that would guide the company towards success, regardless of the issue that arised. Constant involvement of centers of excellence into the business and their availability on demand speeded up problem solving. | The first major impact was the timing of problem solving. Typically, organisations were constantly searching for the next profit and were not focused on addressing problems until they arose before. In such a model, problems were addressed as a consequence. The advent of innovative communities and centres of excellence turned this model upside down. Instead of addressing problems as they arose, the sole defining purposes of such inside organisations were to tackle potential problems before they impact the business. Essentially, the centres of excellence were providing almost any field expertise as well as constructing multiple future scenarios and determining a strategy that would guide the company towards success, regardless of the issue that arised. Constant involvement of centers of excellence into the business and their availability on demand speeded up problem solving. | ||
The second major impact was the timing of innovation. The traditional model of innovation for many organisations was innovating to survive. By having units within an organisation dedicated towards innovation, innovative solutions were discovered sometimes even before the problem arose, so acting as a preventive method in many cases. This inside-out level of innovation enabled information to be internalized and spread between departments that external consultants couldnot simply compete with. <br> | The second major impact was the timing of innovation. The traditional model of innovation for many organisations was innovating to survive. By having units within an organisation dedicated towards innovation, innovative solutions were discovered sometimes even before the problem arose, so acting as a preventive method in many cases. This inside-out level of innovation enabled information to be internalized and spread between departments that external consultants couldnot simply compete with. <br> | ||
As it had been alluded to, by changing the fundamental way problems and innovation were addressed within corporations, the need for external consultants was greatly diminished. As organisations were able to solve problems and innovate before issues even arose within their own confines, external consultants were no longer needed in the same capacity. While external consultants would always be needed for certain capacities, they were no longer the first choice to solve problems as well as source for innovative ideas.<br> | As it had been alluded to, by changing the fundamental way problems and innovation were addressed within corporations, the need for external consultants was greatly diminished. As organisations were able to solve problems and innovate before issues even arose within their own confines, external consultants were no longer needed in the same capacity. While external consultants would always be needed for certain capacities, they were no longer the first choice to solve problems as well as source for innovative ideas.<br> | ||