Creating Capacity for Innovation | Silicon Valley Innovation Center

Innovation is the basis of the sustainable competitive advantage. Only those who continuously innovate can stay long on the market. However, innovativeness is possible just if a company is capable of creating capacity for innovation and applying the digital business transformation.

Digital business transformation boost innovation

As business environment is changing, the companies need to change as well. Those who do not conduct changes cannot expect the business success. In this regard, a company continually needs to innovate and thus improves its business performance. However, to accomplish that, companies need to create a capacity for innovation and adopt new digital solutions to boost innovation.


Exceptional effects can only be achieved through disruptive innovation such as new digital solutions that have brought many changes. The digital business transformation has reshaped the way of doing business. It also has increased customer expectation. They are now much more demanding and quickly switch to another company that offers them a higher value. Therefore, the digital business transformation has increased the need for innovation, but it also has provided new opportunities for creating capacity for innovation.

Creating capacity for innovation

The ultimate goal is to satisfy and retain customers and attract the new ones. For that reason, each company has to create a culture of constant change that will boost innovation. It is enough to have one unique idea that will disrupt the industry, and you will win the market overnight. This is especially important for startups that need a quick breakthrough on the market. However, as have to keep pace with them, large companies have to innovate as well. 

On the other hand, finding a good idea sometimes is the hardest task. However, even when you have an excellent and unique innovative idea, you still need to have enough financial resources, knowledgeable, dedicated and motivated employees, and some luck to implement it. Therefore, creating capacity for innovation is a condition for your further growth.


Here are some suggestions how you can create a larger capacity for innovation through digital business transformation.

Create a culture of innovation

To encourage creativity and innovation, the company needs to have an adequate culture. Too strict rules are a limiting factor for innovation, as well as a too large hierarchy. If you restrain your employees or punish them for a failure, they won’t be innovative. Thus, give them the freedom to be creative. Also, you must work on talent development and focus on soft skills that are currently much most valuable than technical knowledge. According to studies, among them, the most significant is the change-oriented mindset, digital and technology literacy, and strategic thinking.


Therefore, encourage them to be creative, to share their ideas, to be involved in finding better solutions or inventing something new. Praise them, even if effects of their ideas are not so good as you have expected. Let them know that change is what is needed, that innovation drives the growth of the company which benefits them as well. Lead them to success! 

Set a digital congruence

In a new digital society where technological advancement is continuous, the only constant thing is change. Therefore, you need to achieve the digital congruence or the balance between your vision, strategy, culture, and structure. All activities need to be directed to the implementation of digital change and thus on boosting innovation.

If your vision is to be the best, you must tend to be disruptive. In line with such vision, you should set a strategy focused on constant innovation. However, if you do not have the effective leadership to create the culture of success which encourages change and innovation, you won’t succeed in your intention. The same will happen if you have the hierarchical organizational structure that restrains creativity or the flat structure that avoid risk. Therefore, you need the organizational structure based on business groups, such as Google and Amazon have. This is the portfolio of internal startups with a diverse level of maturity. 

Collaborate with others

The digital business transformation has also established new cross-industry ecosystems that enable cooperation and integration, and thus provide synergy effects of innovation. Also, the mobile ecosystem allows the formation of specialized ecosystems that capture a higher value. Therefore, digital business transformation brings benefits to all included sides in ecosystems. Startups have fresh ideas, while large corporations have resources. By uniting them, a capacity for innovation becomes endless.                          

Therefore, the digital business transformation gives you numerous possibilities for creating capacity for innovation. Use them to be the best on the market!