Employees as a Source of Innovation

Employees as a source of innovation:

Internal employees of the company are a huge source of ideas. Their experience and exposure within a particular industry combined with their knowledge of client needs enables them to be a very well informed idea source. The company should tap this resource by encouraging and rewarding the employees for new ideas. Provide them with the necessary infrastructure to submit new proposals. Employees should be motivated to articulate the needs of the consumers and translate them into viable ideas.

Some ways to encourage employees to innovate:

• Open Forums —  gives employees a sense of direction and a chance to foster collaboration.
• Implement some of their ideas: This recognition will make them feel like their efforts are being valued and encourage them to keep trying. (example 4)
• Time Out -to give employees the space in their working day for creative thought (example 1)
• Hire different types of people- diversity at work place ensures a various view points, an increase in thinking methods can increase the chances of innovation
• Expansive Roles — to help employees move beyond the confines of their assigned job by thinking out of the box (example 2)
• Idea Competitions — stimulate action and generate ideas

Examples:

1. Google “20% time”- The company required employees to spend 20 percent of the time on side projects, this policy resulted in some of the company’s most successful products such as Gmail, Adsense, and Google talk
2. Suggestion box- In 1985 John Patterson created the first sanctioned suggestion box programs, the concept was to tap ideas of the hourly workers. The breakthrough idea collected 7000 ideas, one third of which were implemented.
3. One great idea- Bank One came up with an employee idea program called “One Great Idea”. Employees submit, discuss and collaborate ideas on the company’s intranet.
4. Haier- Instead of financial rewards, Haier names its products after the employees who came up with its idea, this serves as an ultimate recognition.

Sources:

http://www.saxonsgroup.com.au/blog/small-business/ways-to-encourage-your-employees-to-make-your-business-more-innovative/

https://www.london.edu/faculty-and-research/lbsr/employee-led-innovation#.WqpPxJNubR0

Strategic management of technological innovation by Melisa A. Schilling

Sources:

http://www.saxonsgroup.com.au/blog/small-business/ways-to-encourage-your-employees-to-make-your-business-more-innovative/

https://www.london.edu/faculty-and-research/lbsr/employee-led-innovation#.WqpPxJNubR0