Although it has long been acknowledged that innovation is a key factor in growth and prosperity, the search for innovative solutions has not always been in line with larger societal and environmental objectives. "Wise innovation" aims to bring together innovation, wisdom, compassion, and a comprehensive definition of success.
Scholars frequently use a spectrum to describe innovation, from incremental to radical. According to an article in The Atlantic magazine, fire, the wheel, agriculture, and the printing press are among the 50 greatest inventions of humankind. This article presents an interesting viewpoint. Revolutionary policies such as democracy or women"s right to equality and to vote are also highlighted in this list of social innovations. These revolutionary inventions undoubtedly changed the world.
The important thing to remember is that innovation is a spectrum, and where it falls on the spectrum does not necessarily indicate how valuable it is. Even derivative innovations have the potential to have a significant influence and improve the world. Therefore, innovation must be both new and useful, driving better results and adding value beyond what currently exists. This broader view of innovation extends beyond products and technologies, encompassing any new, useful approach that enhances our daily lives. Ultimately, innovation is about continuous improvement and the relentless pursuit of better solutions.
If you subscribe to the Silicon Valley philosophy of innovation, as I do, the lean startup method forms the foundation for most startups in that region. Coupled with agile development, it serves as the primary process for achieving innovation. This method involves identifying the problem, conducting experiments, learning from them, and iterating. It"s a proven approach that has led to numerous innovations.
One major obstacle to innovation is the lack of knowledge about these methods. Many people, including those outside of product development, such as human resource professionals, are unaware of design thinking and the lean startup method. These methods can be applied to improve various aspects of their work, like creating better reward and retention policies.
Another crucial factor is mindset. Innovation flourishes with an entrepreneurial mindset, characterised by risk-taking and a focus on outcomes. However, excessive entrepreneurial enthusiasm can sometimes be counterproductive. Conversely, a growth mindset is strongly linked to innovation. It fosters the belief that one can continuously learn and overcome challenges. Therefore, grasping these processes and nurturing an entrepreneurial and growth mindset is vital for enabling innovation. The absence of these qualities often constitutes a barrier.
These skills and mindsets can be developed, and many business schools and coaching centres aim to teach both the innovation process and the necessary attitudes.
But striking this equilibrium is no easy feat. Many inventions have unintentionally harmed the environment or society despite their financial success. Consider the ubiquitous plastic water bottle, which has both increased environmental pollution and facilitated access to clean water.
Therefore, wise innovation aims to be "net positive" in all three dimensions—profit, people and planet—to overcome this dichotomy. This calls for a mentality change beyond conventional strategies like lean startup or design thinking. Rather, it advocates for incorporating more expansive viewpoints, such as responsible innovation and systems thinking.
By adopting these mindsets, students and business clients can approach complex challenges with creativity and honesty. A fundamental component of the wisdom mentality, epistemological humility, serves as a constant reminder that there are always fresh avenues to pursue and viewpoints to consider. This willingness to consider different points of view enhances the creative process and promotes resilience and creativity.
Though prudent innovation is relatively new, ethical, purpose-driven innovators may strongly relate to its guiding principles. We should pave the path for a future where innovation is profitable and transformative for the planet and society as long as it champions this approach. Dr. Varun Nagaraj is Dean and Professor of Information Management & Analytics at S.P. Jain Institute of Management & Research (SPJIMR).
First Published: Jun 12, 2024, 16:18
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