Innovation Insight: How to Use Networks for a Better Innovation Strategy

It is well-known that collaboration is a key driver of creativity and innovation. But what sort of collaboration is optimal? KnowledgeBrief clients were joined this month by Professor Bruce Cronin, Greenwich Business School, to explore the strategic role of networks in innovation.

Social network analysis is the process of investigating social structures that – by relationships or interactions – connect people, departments, business functions and so on. However, social networks rarely look as we think they do. We think we are aware of our individual and organisational networks and how they work – but are we really?

Organisations must invest time to understand networks in order to improve their innovation strategy. A few key findings from this month’s Innovation Day include:

• New knowledge is crucial for driving innovation: When networks are existing within constant groups, the information and knowledge within the group is also constant. Increase the potential of new ideas by getting people working together in different environments with different expectations.
• Be strategic in the way your company handles networks: Research shows that organisations being strategic about their networks have more beneficial and stronger alliances. You can get a lot of extra collaboration and knowledge by adding only a few ties. Lack of a strong alliance networks can be detrimental to an organisation.
• Connected vs well-connected: Different connections have different value. It is vital to have in mind that having lots of connections is not necessarily the same as having great influence. Organisations must also keep in mind that too much collaboration can have a negative effect. Do not redesign structure for the sake of ‘connecting’ more.
• Be aware of your “brokers”: Brokers serve as bridges across a number of subgroups in a network (see the May Hot Topic for more information). Be aware what your brokers are doing and what positions they have in their relationships in the network, spot the skills they are likely to have, engage with them more effectively, and empower them more. Becoming aware of your brokers will also reveal structural gaps in the networks and opportunities for innovation.
• Seek the strength of weak ties: The strong connections in networks are essential for collaboration and are to be nurtured. However, many companies over invest in strong ties and keep within the constant group or silo. Break the silo mentality by training people to seek weak ties and build up relationships with strategic groups that can add new knowledge, to help discover new opportunities for synergy.

Next month, clients – including Baxi, Home Office and Airbus – will explore the hidden story of persuasion. For more information, please view the Innovation Day page.