Thanks to expert opinions, today we have understood that the Digital Transformation to a key pillar to achieve Business INNOVATION, which is why it has been Qualified as the FOURTH REVOLUTION or INDUSTRY 4.0 to the point that according to the WORLD ECONOMIC FORUM “it could generate the international economy about 3,700 million dollars before the year 2025.” This shows us that the Digital Transformation comprises a significant support in the entrepreneurial innovation efforts in a business, because, today it is shown that Businesses are increasingly competitive as they adopt and apply more agile ecosystems to develop Products and Innovative services, and thus, achieve greater Business Efficiency and Productivity as a result that Management Leaders or CEOs give the necessary priority to the Innovation that leads to the best customer service. Continuous Process Improvement and thereby achieve greater and better Business Sustainability, of course, forming an Ideal Human Capital that is Capable of achieving greater Labor and Capital productivity.
BUT, HOW TO MANAGE INNOVATION BETTER?
The answer to this unique question was given by Daniel Harris when he said: “Managing Innovation is knowing that we have positive and negative risks. Knowing how to control them through Strategies or firm steps to obtain the desired results. There are many ways to Manage Innovation. But first it must be defined why you wish to innovate, also set up clear objectives, set what the expected impact is. All this helps to define the type of Innovation that you wish to achieve.”
As it is responsible to call things by name, regardless of ambiguities; we have considered it pertinent to select some very illustrative concepts about Innovation as a way to better support our empirical appreciation and exposure. Namely: According to Luecke (2004) “Innovation is the embodiment, combination or synthesis of knowledge in original, relevant and valuable products and processes or services.”
For Daniel Harris: “Innovation is a group of ideas that generate changes and new culture in productive procedures and their manipulation, creating strategies to control and safely execute Implementation in the market for profit.”
But the very used and shared concept in the academic world of the INTERNET is also very relevant, in the sense that Innovation is the engine that transforms IDEAS into VALUE; hence, into positive results. Therefore, it is pointed out that INNOVATION must be “AN OPEN SYSTEM for all Employees and the General Manager must be a great facilitator so this works continuously throughout the Organization with the main objective of INCREASING Productivity and Competitiveness.”
WHAT IS THE ROLE AND THE CHALLENGE OF MANAGEMENT LEADERSHIP TO MAKE INNOVATION AN EFFICIENT ENGINEER OF ENTREPRENEURIAL COMPETITIVENESS?
As corollary of my management Vision and Mission with successful results applying authentic Leadership with Value innovation, I leave my SEVEN MASTER IDEAS to achieve MANAGEMENT SUCCESS with you.
– THINK BIG : Creative and innovative thinking
– DIG DEEP : Research and development
– DRIBBLE SHORT : Strategic and effective tactics
– LOOK AHEAD : Vision of future
– RUN EASY : Foresight and caution
– AIM HIGH : Bold and entrepreneurial spirit
– CHECK ALWAYS : Internal and external control
But it is also fair to acknowledge that in the development and managerial projection with transformative Leadership, not everything goes well or comes easy, at the same time as desire, because, as categorically stated by Mario Benedetti “in life we must avoid THREE geometric figures: Vicious circles, love triangles and square minds” that applying it to business from the authentic Management Leadership means AVOIDING the three geometric accidents because of the negative consequences they bring, and paraphrasing Benedetti they are:
SQUARE MINDS blur the future
MAFIA triangles pervert the MISSION, and,
VICIOUS circles destroy TRUST
APPLICATION OF DIGITAL TRANSFORMATION IN FINANCIAL INSTITUTIONS
In the Digital world we live in, Technological Innovation is definitely transforming the Financial Sector with new digital Systems that are affecting traditional financial services such as: PAYMENTS, INSURANCE, DEPOSITS and CREDITS. FUNDINGS, INVESTMENT MANAGEMENT. MARKET SUPPLY, etc. to the point that large banks such as BBVA are implementing their entire organization with a Work Methodology by “SCRUMS”, “AGILE”, KAMBAN or Visual card etc., with record time to achieve results. But not everything is a bed of roses in the context of the DIGITAL transformation, because, in SIX LARGE BANKS of Spain in the 2016-2018 Period, they closed 678 offices and they have reduced their Executives payroll by 2,229 employees less. On the other hand, Germany’s DEUTSCHE BANK has anticipated losses of 2.8 billion Euros for the Second Quarter of 2019, which would force it to cut 18,000 jobs until 2022.
Here it is good to be aware that every entrepreneurial INNOVATION process with the effective application of Digital Transformation, definitely needs the effective and intelligent application of a COGNOSCITIVE, EMOTIONAL, ARTIFICIAL and ADAPTATION TRANSFORMING LEADERSHIP that shows by example how to APPLY with Suitability Technical and Moral the best disruptive technologies that in terms of need-cost-benefit requires the COMPANY to be managed and led. Here we have FOUR master thoughts that we have to know and apply.
“One of the true tests of LEADERSHIP is the ability to recognize a problem before it becomes an emergency.” STEPHEN COVEY.
“INNOVATION is what distinguishes a LEADER from others” STEVE JOBS
“I am amazed by Companies that have learned to make INNOVATION a routine, because they are permanently building the FUTURE” PHILIP KOTHER.
“LEADERS do not make followers; they CREATE MORE LEADERS” TOM PETERS.