How to reduce innovation risk

Business operations are designed to streamline operations, reduce unnecessary costs, introduce predictability to short-term results, and minimize variability. However, with innovation, risk, uncertainty, costs, variability, and unpredictability come back into the picture. Firms must learn to develop efficient, productive business models that allow innovation risk to be reduced or controlled. To achieve this, innovation can be aligned to strategic goals, executives must be invested in supporting innovation, innovation teams must have people who understand what to do and are trained in innovation tools and techniques, insights into customers’ wants and needs must be clear, and fast innovation processes must be established to obtain quick feedback.