The Paradoxes of Innovation

The world of innovation management and new business development is full of fascinating paradoxes. These fields are known for their counterintuitive dynamics, meaning that innovators must carefully manage opposing forces.

Here, we break down three of the most prominent paradoxes faced:

1. The Uncertainty Paradox

When an innovation project begins, a lot of uncertainty arises. Innovators propose new ideas for products, services, or business models―each with its own set of unknowns. At the same time, they seek ways to minimize those risks as quickly as possible. This is achieved through a quick experimentation mindset, using technical and market tests, feasibility assessments, among others.

For example, BMW and Sixt’s car-sharing service “DriveNow” was born in a sea of uncertainties, which gradually cleared through tests in various cities.

2. The Innovation Phases Paradox

Innovation has two key phases: the idea development phase and the implementation phase:

In the first phase, it’s important to be creative and think outside the box. The skills needed here include the ability to connect ideas, question the status quo and closely observe the environment.

On the other hand, the implementation phase focuses more on management and practical execution. Creativity is still valuable here, but it’s complemented by a strong focus on meeting goals and deadlines.

3. The Paradox Between Incremental and Radical Innovation

Lastly, we face the paradox between two types of innovation–incremental and radical innovation. Incremental Innovation makes minor adjustments to what already exists, while radical innovation seeks to completely transform and enter new markets. Incremental innovation is generally less risky, whereas radical innovation can offer bigger rewards but also comes with more uncertainty. Businesses must balance both forms of innovation to remain competitive in the short and long term.

These paradoxes show that innovation not only involves creativity and launching new ideas but also carefully managing risks and opportunities. For businesses seeking to innovate, understand and navigate these tensions, are a key to success.