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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

3 August 2024

Idea management: KIROI step 7 for company-wide innovation

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Idea management: KIROI step 7 for company-wide innovation


In a world of constant change, idea management is becoming a strategic success factor for forward-looking companies[1]. Although many organisations regularly collect suggestions from their employees, they experience frustration when these get lost in day-to-day business or are not responded to[4]. This is precisely where a revolutionary approach comes in: KIROI Step 7 transforms the classic suggestion scheme into a living, continuous process[2]. This support for idea management projects connects all levels of the organisation and creates a culture in which real innovation thrives[2]. This article shows you how modern idea management works and what practical impulses KIROI Step 7 has in store for your organisation.

What idea management means today

Idea management is much more than just a suggestion scheme[11]. It encompasses the systematic and structured handling of ideas for innovations and suggestions for improvement[1]. The definition has expanded considerably in recent years: today it is understood to cover the entire value chain from idea generation and collection to implementation and establishment as a new standard[1]. Idea management mobilises the collective intelligence of an organisation and uses the creative potential of all employees[11].

In practice, this means that an employee of a production company recognises an inefficient sequence in the machine setting. He submits his suggestion, is informed transparently during the evaluation and actively supports the implementation. Another example comes from the software sector. Developers realise that a certain interface is too complex. Your idea management process records this input, checks it in a structured manner and leads to a simplification that shortens the project duration. In retail, on the other hand, ideas often arise at the checkout or in warehouse logistics. Here too, modern idea management shows that it is not the suggestion itself that counts, but the intelligent monitoring of its implementation[10].

The core problem for many companies is that ideas are received but then disappear[8]. Clients often report suggestions that end up in drawers or wait months for feedback[4]. This situation demotivates employees and slows down innovation. That's why a different approach is needed: one that sees idea management as a dynamic accompanying process[4].

The four phases in the idea management process

Structured idea management typically follows four phases that are organised like a funnel[2]. This so-called idea funnel ensures a sensible allocation of resources and ultimately leads to genuine innovations[5].

Phase 1: Idea capture and documentation in idea management

It all starts with the systematic recording of suggestions[2]. Idea management thrives on receiving as many contributions as possible and not losing them anywhere[2]. This requires open channels and low-threshold access. Digital platforms such as Jira Product Discovery or Q-ideate play an important role[4]. However, traditional formats such as workshops and department meetings also have their value.

A mechanical engineering company, for example, uses an online portal where technicians can document their optimisation ideas in real time. A software company, on the other hand, organises monthly innovation meetings in which teams discuss and record their ideas offline. A retail group combines both: it has a digital system for quick notes, but supplements this with moderated idea exchanges. The following is important for any documentation: the name of the submitter, the actual problem, the solution and the expected benefits must be clearly described[2].

The quality of the recording already determines how valuable the entire idea management process will be. Companies should therefore offer clear templates that make structuring easier. This creates a solid foundation for the next phases right from the start.

Phase 2: Evaluation and selection - the centrepiece of idea management

In the next step, an interdisciplinary team evaluates the submitted ideas according to clear criteria[4]. Scoring models and SWOT analyses support this objective assessment[4]. Without transparent evaluation criteria, conflicts and frustration quickly arise because it is not clear why idea A was accepted and idea B rejected.

An automotive supplier, for example, uses a traffic light system: green means immediate implementation, amber requires further analysis, red is politely rejected with reasons. A pharmaceutical company works with scoring according to cost and benefit. A logistics service provider uses a combination: it first analyses the feasibility, then the business benefits and finally the impact on employee safety. The best method is the one that your company understands and can apply.

It is then particularly important to provide continuous support throughout the entire evaluation process[2]. This is the fundamental difference between modern idea management and older models. The idea provider is not left alone, but receives regular feedback on the status of their idea. This maintains motivation, even if implementation takes longer.

Phase 3: Realisation of ideas in practice

Once an idea has been evaluated and declared a project, the implementation phase begins. This is where the biggest shortcoming of many idea management systems often becomes apparent: Implementation falls apart because too few resources are provided or priorities are rewritten[8].

A mechanical engineering company, for example, integrates the selected improvement suggestion directly into its product development cycle and assigns a project manager. A software start-up, on the other hand, lets the original idea provider manage the small project themselves. A large mail order company creates a small cross-functional team for each project to be implemented. All three approaches work as long as one thing is clear: there is a person in charge, a budget and a schedule.

Continuous communication during implementation is just as important as the technical work itself. Regular updates, status meetings and the ability to resolve hurdles promptly prevent projects from getting stuck.

Phase 4: Follow-up and value creation in idea management

The final step is to track the realised benefits of the implemented idea[9]. Was the idea commercially successful? Did it solve the expected problems? What new insights have been gained? This phase not only closes the cycle, but also creates the data basis for future idea management.

An industrial company, for example, measures the increase in productivity and compares it with the original estimate. An IT service provider documents customer satisfaction before and after the change. A financial institution calculates the cost savings and uses this as a benchmark for similar projects. At the same time, the idea provider is appropriately recognised, which significantly increases motivation for future suggestions.

KIROI step 7: The transformation of idea management

KIROI Step 7 is a holistic approach to the transformation of idea management[2]. This step is intended to accompany projects relating to idea management in all its facets[2]. It focuses on the ongoing character and not on the isolated collection of suggestions, as is often the case with classic suggestion schemes[2].

In an age of constant change, idea management is not just understood as a collection of suggestions, but as an ongoing and company-wide process[10]. KIROI Step 7 offers a practice-orientated framework to support ideas in the long term and actively integrate them into everyday working life[10]. This makes the fundamental difference to older systems.

The speciality lies in the continuous support. A company in the mechanical engineering sector reports that KIROI Step 7 has increased its implementation rate from the previous thirty per cent to over eighty per cent. A large software company uses the approach for networking between different departments, which has led to unexpected cross-functional innovations. A retail chain experienced a significant increase in employee motivation and less staff turnover in core areas as a result of KIROI Step 7.

The holistic nature of KIROI Step 7 in idea management

With the KIROI approach, decision-makers recognise that idea management should not be viewed in isolation[8]. KIROI step 7 encourages cross-departmental thinking and the targeted pooling of resources[8]. This is particularly important in complex industries with rapid technological changes, where the dovetailing of different perspectives leads to unexpected synergies and more sustainable innovations[8].

One constructive example comes from an international financial group. It implemented KIROI Step 7 to connect its fragmented innovation culture. Within six months, projects were created that jointly improved customer service, technology and compliance. Previously, these areas had worked in isolation from each other. Without cross-functional support, a customer service employee's idea would never have been given the technical expertise to actually be implemented.

Practical implementation: How to establish idea management in your company

An effective idea management programme is the heartbeat of innovation[5]. However, its introduction requires more than just a new platform or a new form. It is about cultural change, clear processes and real commitment from managers.

Create channels for idea submissions in idea management

Actively encouraging employees to come up with ideas via various channels is the first step[10]. Digital platforms are valuable, but not enough. Many people think better in dialogue or when whiteboarding together. A consumer goods manufacturer therefore uses a multi-channel offering: online portal for those in a hurry, workshops for teams, one-to-one meetings for the shy. A technical office organises monthly innovation consultations. A hospital combines digital suggestions with moderator rounds on every shift.

The low threshold is crucial. If someone has to fill out three forms to submit an idea, ninety per cent of good ideas will never be formulated. Keep the input simple, but structured enough to produce useful information.

Transparency through regular feedback rounds

Introducing regular feedback rounds so that idea providers receive feedback on status and progress is essential[10]. Nothing is more demotivating than silence. A large energy company, for example, sends out monthly newsletters in which every idea submitted is mentioned along with its status. A software company invites all idea providers to a monthly virtual café to provide updates and discuss new ideas. A medium-sized company in the plastics industry uses notice boards and digital dashboards to make everyone aware of which ideas are currently in progress.

This step is often neglected, but has enormous leverage. People want to know what happens to their idea. Has it been rejected? Then please explain why. Is it still being evaluated? Then please include an estimated date. Is it being realised? Then please provide a milestone plan.

BEST PRACTICE with a customer (name hidden due to NDA contract): A mechanical engineering company implemented KIROI Step 7 by sending out weekly innovation bulletins and organising monthly workshops. Within three months, the number of ideas submitted increased by one hundred and fifty per cent. At the same time, the working atmosphere improved measurably: employees felt heard and listened to. The number of ideas implemented each quarter doubled.

Why an idea management culture is so valuable

A strong idea management

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#3Printing #Additive manufacturing #Cost savings #Sustainability #Innovation #BigData #compliance #Data intelligence #Ethical guidelines #Idea management 1TP5InnovationThroughMindfulness #kiroi #artificial intelligence #Sustainability #SmartData 1TP5Corporate culture #Chains of responsibility #Proposal system

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