Organizational innovation: Understand everything you need to know before applying it to your company


Organizational innovation is the process of introducing new methods, processes, products and services in a company , that is, it is a way of adopting new ideas, solutions and practices to improve performance and increase its presence in the market.

It seeks to create new ways of working, products and services that are better than existing ones. Also, it is good for companies as it helps in creating competitive advantage .

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This type of innovation consists of bringing novelties to the company's production chain, so it aims to make processes more agile, reduce costs and improve product quality.

Classic examples of process innovation include the inclusion of conveyor belts in production lines and the use of technologies such as automation, AI and the internet of things .


This aims to create and launch new products on the market, which can put unique features that bring benefits to customers.

An example of this is the launch of smartphones, which were well accepted by users due to constant innovations.


Uber is an example of service innovation, which offers several options to the transportation market . Through Uber, users have the chance to hire private transport at an affordable price, and drivers can work for the company.

Another thing about it is that it has several services such as Uber Eats, Uber Black and Uber Pool. Service innovation seeks to stand out by offering more benefits to users, with services that make people's lives easier.

Why is organizational innovation important for companies?

As already mentioned, organizational innovation helps companies to be more competitive. As well, it can help create new products, processes and services that can improve:

  • productivity;
  • reduce costs;
  • increase customer satisfaction;
  • improve the company's performance in the market.

How can companies implement organizational innovation?

To put an organizational innovation into practice, it is necessary to create a strategic plan, define a schedule and budget, and establish clear objectives . However, you must go slowly so as not to make mistakes in the execution.

The plan should define what the objectives for the innovation are, what the goals are and what needs to be done to achieve them. While the definition of the schedule and budget serves to give an idea of ​​the deadlines and investments required for execution.

After that, the resources for innovation must be identified. Whether they are financial, human or technical, in addition to the fact that execution cannot happen randomly.

Therefore, analyzing the current conditions of the company and establishing what are the priorities to be worked on is something important for progress.

It is good to remember that to put it into practice, you must think about the culture and values ​​of the company. As well as being aware that innovation is not seen as a foreign element, which may not be well received by people.

This is a complex process, but one that can bring great results to the company. Therefore, it is good that it is done with care and attention, in order to have the best possible result. In addition, you should monitor the results on a regular basis.

innovation culture

Try to have a culture that motivates innovation, as nothing will be effective if you don't encourage and reward innovation within the company. So, try to give these incentives for people to create new ideas and use them.

Create a Pilot Program

This part consists of having a program to test the innovations. This way, you will be able to notice possible problems with the realization, but it can also help you improve your plan if you need to.

How can organizational innovation be influenced by culture?

Culture can have several ways to impact organizational innovation, for example, a culture can encourage teamwork , as well as changes will motivate employees to seek new ideas and solutions.

In addition, culture can provide resources such as time, tools and financial support so that people can create and test innovations. In addition, giving rewards can motivate the team even more.

What are the main challenges to implement organizational innovation?

Organizational innovation is a challenge for many companies, as they need to understand and adapt to the market and people's needs.

You have to know the consumer and put him at the center of decisions. That way, understanding what goes on in their heads will make it easier to create products and services.

Another challenge is understanding market trends and how this relates to customers. By knowing this, companies can anticipate the desires of the target audience .

Another thing is that innovation should be everyone's challenge. Therefore, the entire company must be engaged and involved in the creation process.

You need to have a plan that addresses both the technology and the organizational culture so that effective and productive innovation can be implemented.

Encourage internal and external collaboration

Another challenge is to motivate internal and external teamwork. The company needs to create collaboration spaces that allow the exchange of ideas and the exchange of knowledge between people.

It should also create partnerships with other companies to gain new ideas and visions. This partnership can enable the creation of solutions that would not otherwise be possible.

failure is part

Companies have to understand that failure is part of the innovation process and that it should be seen as a learning opportunity. So, know that not all ideas will succeed and use this to improve your strategies.

What are the benefits of innovation for companies?

Thanks to organizational innovation, companies can stay ahead of trends, so they can end up improving customer satisfaction as well as reducing costs and increasing profit.

Another benefit is that it allows companies to be more flexible and adapt more quickly to any changes in the market. In this way, they can take advantage of opportunities for growth.

Higher return on investment

By innovating and creating new products or services, companies can increase sales and increase profit. Furthermore, innovation can result in lower production cost, which can also increase profits.

Increase efficiency

Innovation can also increase the efficiency of companies. For example, it can help companies make processes more efficient and improve product quality.

This means that companies can produce more with fewer resources, which results in cost savings. But it can also give you greater control over processes, which can result in improved quality and increased productivity.

What are the main obstacles to implementing organizational innovation?

Organizational innovation has many obstacles to be put into practice. For example, company policies and internal disputes . So it's good to have a plan to keep yourself in the right direction and succeed.

If the sectors are not united, there will be resistance and delays, which can prevent the execution of new ideas. Also, not continuing the ideas can be another problem.

If new ideas are not supported or given the chance to grow, they cannot succeed and therefore have no value for the company, in addition to the financial and time expenditure being in vain.

Another barrier is limited budget. Executing new ideas is often expensive, and sometimes companies don't have the necessary financial means.

What are the best practices for implementing organizational innovation?

Best practices for putting organizational innovation into practice involve involving members in the strategy. By encouraging group work, the company's goals become everyone's and the entire company benefits from this process.

Leaders must strive to motivate and inspire others. Other tips that can help small and large businesses:

  • promote the feeling of challenge;
  • offer challenging projects;
  • choose the right person for each task;
  • seek out those who feel encouraged to meet the demand;
  • being 70% is good.

This encourages people to pursue innovations without pressure. By the way, these tips are from Harvard Business Reviews.

How can technology help organizational innovation?

Technology can give leaders organizational innovation, as it gives several tools to help accelerate and improve the process of innovating.

Data analytics and artificial intelligence can help identify trends and opportunities in new markets. While group work and online communication tools allow people to work from home.

It can also help companies to increase the speed and scope of the innovation process, which can allow them to interact with other companies and groups around the world.

What are the main lessons for implementing organizational innovation?

Organizational innovation is about finding solutions to meet customer needs. So, you shouldn't be afraid to fail, because that's part of the process.

It is necessary to have a culture of innovation in the company to motivate people to express their ideas and seek creative solutions. This means that everyone must be open to new ideas and be motivated.

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