items. For example, consider how well the innovation ties
to the organizational goals, how broadly it could be applied
(to many customers or just one; is it a global solution or
a micro-solution?), how large the financial opportunity
is, how much it will improve customer retention and/or
new sales, how many resources it will consume, how much
time will be required to implement it, and so forth. Figure
2 shows one of many possible examples of such a matrix.
2. EDUCATION AND DISCOVERY: The basis for true
collaboration
x Discover the challenge/pain point, and form the right
team for innovation
x Explain the challenges/pain point to all stakeholders
x Explain the process for discovering the roots of
problems and why each stakeholder group is involved
in that process
This is the stage where you discover “what does the situ-
ation look like right now?” It is critical to discover why you
need to innovate before launching an innovation project.
Start by identifying the issues and who is impacted by them.
Involve all the stakeholders in your innovation process.
These might include your customers, your suppliers, your
own employees, and the end users of the innovation. It’s
important, too, that all stakeholders understand a consis-
tent definition of the issue, so be sure to present them with
a clear and logical explanation of what is happening and
why. Then, answer each stakeholder group’s questions and
address any concerns before you start innovating.
Each group must be educated about the challenge, the
impact, and the process of innovation, but in different
ways. For example, suppliers of technology and services
will need to feel safe in sharing information, particularly
as some may be competitors. You will have to help them
understand that the collaboration is for your organization’s
benefit and will not negatively impact their competitive
advantage. Your customers must be genuinely involved in
discovering what they really need—which might be differ-
ent than what they think they need. Henry Ford is credited
with saying, “If I had asked people what they wanted, they
would have said faster horses.” It is your job to help your
customers understand how you can innovate together to
address their actual needs, something that’s only possible
in an environment of open communication. Additionally,
employees must feel that they are being heard and valued.
Each one must not only be given permission but also be
encouraged to speak freely about the current state and to
propose ideas. Above all, they must be treated as equals
throughout the process; individuals’ titles are not relevant
if you want true innovation.
The imperative to transform the supply chain is fed by
ever-changing trends, emerging technologies, new process-
es, and multiple pain points. It is important not to allow the
pressure for innovation to push you too fast. This is why the
education phase is so important—it will keep participants
from rushing to a seemingly obvious solution that might
not be the optimal solution. Learning where to invest your
time and resources is just as important as the execution.
Additionally, be sure to set expectations that embrace
failure as well as success. Often in an innovation project,
ideas are generated that do not prove to be a successful
solution. This is a necessary part of innovation that even-
tually results in success. Once that is understood, begin the
process of training all stakeholders on the ideation process
and how the innovation project will progress. In addition,
everyone should understand that each problem chosen for
innovation will result in many ideas to be researched, with
some to be discarded as failures, some to be shelved as not
feasible at this time, and some to move to the next step of
further research and pursuit.
Overall, the innovation process will be built on the col-
laboration discussed above plus design thinking and open
innovation. Design thinking is a methodology for solving
complex problems. 2 It starts with identifying a pain point
for a customer or organization. Ideas are gathered and
developed with few or no limitations; research on the ideas
are done to determine whether a solution already exists and
whether or not it is feasible; the best possible solutions are
proposed; and prototypes are created for the solution with
the greatest potential.
Open innovation is the concept that your own internal
research is not enough; in order to successfully innovate,
you need a community of interested parties working toward
innovation to solve a specific problem. 3 This often requires
including people outside your organization or customer
base. It might also mean involving current vendors who
have expertise that your organization lacks. Also, be open
to including other supply chain partners, and even bringing
in someone who has successfully gone through the process
in another company.
3. RESEARCH AND IDEATION: The path toward solving
customers’ problems
x Conduct brainstorming sessions using various
techniques
x Help stakeholders create solutions with no limitations
on ideas
x Prioritize the ideas based on your matrix of business
relevancy
