Newsletter No. 5 | Cultivating Innovation as a Habit | Corporate Lessons for SMEs

But how does one start being more disciplined about innovation in an established business, especially when there's no immediate pressure to bring new ideas to life, like in startups?

One Insight from Me

Around 2018, many corporates in Switzerland realized the importance of creating habits around innovation. This led to a surge in corporate innovation units with a strategic insight: making innovation a habit by establishing dedicated organizational units focused on structured innovation. I was fortunate to be part of such a unit at SIX Group and play a role in bringing it to life.

So, how did we approach disciplined innovation at SIX?

We built a separate business unit dedicated to innovation, comprising the following teams:

• Open Innovation Unit: Collaborating with startups and academia.
• Strategic Foresight Unit: Developing strategic scenarios.
• Innovation Project Team: Testing business ideas.
• Scaling Team: Scaling tested ideas into businesses.
• Marketing Team: Communicating our efforts and building momentum.

Here’s what worked:

• Responsibility and Accountability: A dedicated business unit inherently created responsibility and accountability for innovation.
• Structured Idea Testing: Many ideas were generated and tested in a structured manner, ensuring more resources were committed to promising ideas.
• Strategic Feedback Loop: Innovation efforts created a feedback loop for SIX's strategy unit. By analyzing new technologies, promising startups, and collaborating with academia, we ensured that the company stayed well-informed about external developments.
• Repositioning Among Stakeholders: Beyond SIX, we were able to re-position ourselves among stakeholders as a company that drives forward-thinking initiatives.

Of course, corporates have more resources to pursue innovation because they require extensive structure and discipline. But that's the beauty of pursuing innovation in an SME. With fewer decision-makers, less complexity, and limited resources, SMEs resemble startups more than corporates. Consequently, maintaining a structured approach to innovation is easier but just as necessary.

Here's how I would create the right amount of structured innovation in an SME to ensure my business stays future-relevant:

1. Confront the Brutal Facts and Create a Vision

   Determine what your business stands on today. What works? What doesn’t? Talk to different people inside and outside the company. Conduct both macro and micro analyses—from people to market. This should be easier in an SME than in a corporate, which often has multiple business models running simultaneously. 

2. Form a Team

   Assemble a small, dedicated team. Even a tandem can work wonders. Don’t go it alone; having a partner keeps you motivated and accountable.

3. Build Habits

   Treat innovation as a discipline. Regular sessions help maintain focus and ensure accountability. Set goals and stick to them. Start by dedicating time to pursue innovation.

4. Establish Facts

   Many people have great ideas, but they often keep them in their heads. Document your ideas and create a structure to ensure they get executed.

One Question for You

Are you or someone else in your SME pursuing innovation in a structured manner? 

One Opportunity for Us

If innovation and structured processes and habits sound interesting to you, but you're still unsure about how to start or who to start with, I’d love to have a conversation with you. Let’s discuss how we can bring structured innovation practices to your SME and make innovation a driving force for your business.