Modern businesses have several hidden paradoxes, for instance, customer satisfaction or employee satisfaction, which should come first? Analytics or intuition, how to make the right decision? Another important topic of debate is Innovation vs. Standardization, which one is more important?
Standards can be defined as a form of embodied technical knowledge accessible to all types of organizations that enable more effective products and development of the process. On the other hand, innovation is how to transform novel ideas to achieve the value of the business. Digital innovation expands its horizon and includes soft innovations, including communication innovation or cultural innovation; besides hard innovations like product or service or business model or process innovations.
Important Consideration
There could be several levels of standardization. In general, businesses want standardization of internal reasoning. In addition to this, they also obliged by the external environment to be flexible. There are two main strategies, including
- Profit via standardization
- Profit via innovation and flexibility
A strategic approach to both innovation and standardization must be done on two levels, such as at the new product and at the processes of existing products. When it comes to gaining in cost, you need standardization. When it comes to gaining from the change, you need innovation. However, the quantity of standardization and innovation in the new product is the key to meet target costs in the phase of product design. Innovation versus standardization is actually Innovation and standardization. But, people usually find it challenging to understand that they actually can go hand-in-hand.
Standardization is inside-the-box (ITB) and Innovation is outside-the-box (OTB). Organizations need both. In fact, they cannot survive without a healthy balance of both. It is important for businesses to open to and feel empowered to act upon-Out of box-OTB thinking. This is only when you reject the ability to challenge the conventional wisdom that ITB becomes problematic. It is quite a consciousness thing. What you have done is to raise your consciousness of that balance that makes a world of difference. Well-reputed organizations need both standardization and innovation. The only thing is to discover how and when to apply them in the most effective and appropriate manner.
|