The role of the Director or Head of Innovation is one of the most important, complex and in-demand positions of any organization that intends to lead its sector in the Innovation Society. This person will not only be responsible for leading the long-term transformation of the business, but will also be responsible for the exploration cycle and ensuring that there is an efficient flow between it and the operating cycle of the business. But… What are the key functions of the innovation manager?
CTO, CIO, CEO…Who is the Chief Innovation Officer?
Truth be told, there is a wide variety of options and opinions regarding the functions of the Chief Innovation Officer. Perhaps for this reason, we see that this position has multiple approaches in organizations and, therefore, different positions in the organizational chart and its different hierarchical dependencies. Depending on an organization’s approach to this position, we will also find different training requirements
The vision of the business of the future
In the most ambitious companies that have the most internalized need to innovate, business structures are created that are financed to develop the business of the future. This creates a figure of the second CEO, due to the existence of two business units: today and tomorrow. This is what is called Chief Entrepreneur.
These cases, although still rare, are the ones chosen by large organizations that create new legal structures (companies) in charge of developing future businesses. Telefónica could look like this example, with all its infrastructure of initiatives around Telefónica I+D, for example.
In this case, the most demanded degrees refer to university higher education with a Master’s Degree or Expert Program in one of the following subjects:
- Master’s Degree in Entrepreneurship and Innovation.
- Expert in Innovation in the Company.
- Master’s Degree in Creativity and Business Innovation.
- Executive at Innovation and Digital Management
- Innovation and Digital Transformation
The vision of R+D:
Historically, organizations in the industrial age, before the information technology revolution, placed innovation in the area of research and development. They were the most responsible for generating new solutions, in charge of developing new products in an agile way, starting with research, solution development, and market launch. This vision is still very present today in industrial companies and sectors in which R+D has been key to understanding the success or failure of organizations, such as the pharmaceutical industry.
In this case, the most demanded degrees usually respond to degrees in Engineering or directly related to the object of the business complemented by Master’s Degrees or Expert Programs in Engineering in Process or Product Innovation.
The technological vision:
The role of Chief Innovation Officer is often assimilated to that of Chief Technology Officer (CTO), or to that of Chief Information Officer (CIO). The meaning of this option is in both cases the fact that it is digitalization that leads the transformation of the business. A common option in industries where technological infrastructure has a priority weight in the operation of the business.
In this case, we are talking about degrees in Computer Engineering, Industrial or Electronic Engineering or CFGS such as Multiplatform Application Development, Electronic Maintenance or Electrotechnical Systems and Automations that can later be complemented with Master’s Degrees or Expert Programs in Innovation Management (not always).
The marketing vision:
There is also a company profile in which innovation falls on the Chief Marketing Officers (CMOs). These are companies generally in the consumer sector, and with an approach to innovation from brand and product innovation (including packaging), to which they are recently adding the technological factor and the vision of the user experience. It makes sense: the brand and the product have always been the stars of the business in these companies.
With this objective in mind, there is the Bachelor’s Degree in Marketing, with the Higher Speciality in Entrepreneurship and Innovation.
The organizational vision
In other organizations, perhaps more oriented to professional services and with large structures, the role of the head of innovation falls to the area of Organization and/or Knowledge Management, or similar. That is, in an area of support for business units and with direct access to Management. An approach to innovation as an area of service to business units, which is also responsible for making sure that innovation not only brings economic results, but also learnings. In this approach, the functions of the Innovation Manager are close to those of a Chief Learning Officer. This implies seeing the company as an environment of experimentation and continuous learning.
In this case, the most suitable degrees correspond to a Higher Degree with a specialization in Knowledge Management and Innovation.
Profile of the innovation manager: 5 characteristics
But more important than who the innovation leadership depends on and in what area it is positioned, are the competencies that the Innovation Director must treasure.
This leader of the organization must have the following profile, or have the ability to develop this profile in the short term:
- Networker, both internally and externally, for which they must have communication skills. The innovation manager must be able to build bridges to drive innovation.
- Insider: ideally, an innovation manager should be knowledgeable about how the organization works, so it is advisable to bet on internal talent.
- Influencer: Able to influence strategic decision-making
- Motivator: To be a motivator and, therefore, capable of leading projects and people towards uncertain goals. Therefore, it also requires a high component of emotional intelligence in its leadership style.
- Strategist: The position of Director of Innovation is a strategic position. As such, the person in charge of this position must be able to understand the company’s business and the movements of competitors, as well as new players. They must know how to differentiate between today’s business and the one that can be generated for tomorrow. You must be able to identify potential blue oceans to experiment on. And it needs to position itself as an ally of the Management to make key decisions for the future.
Competencies of the Innovation Manager
Why does the innovation manager need to bring these skills together? Because the roles that await him are the following.
The Innovation Manager has the following 10 key roles:
Innovation strategy
- Design, execute and evolve over time, the defined innovation model and process (innovation cycle).
- Create and maintain the corporate innovation ecosystem (committee, partners, innovation agents…), both internally and externally.
- Align all innovation activities with the business and innovation strategy, focusing on strategic opportunities.
Innovation operations
- Generate innovation activity in a systemic way (ideas, challenges, insights…) in the corporate ecosystem.
- Create (and support) the right innovation teams to solve strategic innovation challenges.
- Be transparent and communicate to the entire organization the initiatives that are being promoted at all times. It is about sharing content in relation to innovation, inspiring the entire community, and especially the teams and people who are involved in innovation projects.
Financial management of innovation
- Manage innovation resources as corporate capital risk, dosing the distribution of resources to projects and teams.
- To take advantage of the innovation support systems available to the company, both public and private.
- Ensure the return of the innovation cycle, both at the level of learning and “deal-flow”: that is, that viable projects resulting from innovation initiatives go on to generate business (from exploration to exploitation).
Culture of innovation
- To promote the development of the creative and innovation skills of the people in the organisation, promoting its innovative DNA and the company’s culture of innovation.
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