Innovation drives growth and generates groundbreaking concepts and products. However, misconceptions about innovation often hinder corporate organizations from truly embracing it.
Innovation is crucial for the growth and sustainability of any organization. It drives progress, helps adapt to changing markets, and fosters a culture of continuous improvement. Without innovation, companies risk becoming stagnant and losing their competitive edge.
The emergence of key technologies like artificial intelligence, the Internet of Things, cloud computing, and big data has accelerated the pace of change. This brings opportunities for companies ready to innovate. After all, it is the human capacity for innovation that took us out of the Stone Age and is carrying us through into the Space Age!
Driving innovation in large corporate ecosystems or small companies begins with busting myths! This post explores innovation in corporate settings, debunking myths holding back innovators and revealing truths every company should embrace.
We’ll draw on the expertise of ICL innovation experts Dr. Hila Koren, Senior Manager of ICL’s Internal Innovation Accelerator (BIG), and Lior Frimet, Head of ICL Artificial Intelligence, who is currently leading over 100 AI projects.
Understanding Innovation in Corporate Culture and Debunking the Myths
Innovation is vital for organizations to thrive in dynamic markets. Without it, companies risk becoming irrelevant. Here, we’ll address four myths that hinder growth and prevent companies from realizing their full potential.
Myth 1: Innovation Only Happens in Startups
“Innovation does happen in large, established companies. ICL is 100 years old, and the level of innovation we experience is amazing..”
— Dr. Hila Koren
Startups represent innovation in corporate culture, with the underlying belief that only agile, tech-driven startups can innovate. The unspoken assumption is that established companies operate on set paths, with a fixed range of products and services. However, this perception is far from the truth. Established companies like ICL are proving that innovation thrives beyond startups.
ICL has grown significantly over the past three decades, harnessing innovation to release game-changing products and transform operations with sustainable energy and circular economies.
One project that exemplifies breaking down traditional silos is ICL’s BIG Innovation for Growth project. This highly successful internal accelerator fosters a problem-solving mindset that identifies opportunities for improvement and growth.
BIG operates on the belief that all employees can be natural innovators who possess ground-level insights. It gives them a mechanism—independent of the usual chain of command—to pitch and develop their ideas. BIG has generated over 7,000 ideas, with an impressive 1 in 3 conversion rate to projects. BIG’s success has even become a Harvard Business School case study, showcasing structured innovation in a corporate culture.
Lior Frimet adds, “It is much simpler to innovate in large organizations today where you have the financial backup and state-of-the-art technology for implementation and execution. Moreover, ICL has patience for mistakes because we understand that in order to succeed, sometimes you have to fail.”
Innovation is not limited to startups; it thrives in established companies like ICL that have the vision and infrastructure to nurture it. By providing the right environment, tools, and support, mature organizations can drive substantial innovation and maintain their competitive edge.
Myth 2: Innovation is Risky, Tech-savvy, and Expensive
“When we talk about innovation, we’re not just talking about tech-savvy, super-expensive ideas. Many innovative ideas, like optimizing business processes, don’t require a big budget but still contribute significantly to the organization.”
– Lior Frimet
There’s a pervasive myth that innovation is a risky process that requires a considerable upfront investment of cash and other resources – as well as access to the latest technologies.
However, innovation comes in many shapes and sizes, and many innovative ideas involve optimizing business models or processes, which usually do not require a big budget but can still contribute significantly to the organization.
Lior Frimet illustrates this with an example from ICL’s Dead Sea Works site: “We added a short pipe to heat the solution by around 1.5 ℃, and this change alone saved $6 million annually.”
Hila Koren further emphasizes the impact of such optimizations: “It’s clear that when we talk about innovation, we’re not just talking about tech-savvy, super-expensive ideas. Looking at our overall portfolio, around 70% of our ideas fall under continuous improvements – improved applications for products or process optimization-related, and their overall contribution to the company is huge. A lot of small projects accumulate into a very big impact.”
The concept of innovation in corporations covers an entire spectrum of problem-solving, improvements, and growth. No company or organization in the world operates at 100% efficiency or 100% safety.
Innovative employees who have access to a framework for expressing ideas can not only save money but can potentially save lives. This inclusive approach allows everyone to contribute, fostering cultural change and significantly impacting the organization.
Myth 3: Innovation is Only for Lone Wolves
One of the biggest myths is the perception of who brings forth innovative ideas. What was once attributed to “lone wolves” or singular geniuses, is now seen as the role of every single employee.
A combination of two factors contributes to this change: a wider definition of innovation– moving from what we’ve always done, to what we should do in order to create a meaningful positive impact on our business.– and an ideation platform that encourages collaborations.
“In ICL, we see a rise in collaborative ideas. The strength of not being a lone wolf but working together has led to more innovative solutions and a stronger organizational culture.”
— Lior Frimet
Today, effective collaboration is key to innovation in corporate organizations. Diverse teams develop richer, more effective solutions, often leading to faster results. A shorter time to market increases the likelihood that a new product will stay ahead of the technology curve.
ICL has embedded innovation into its DNA. New technologies like big data, cloud computing, and video conferencing tools enable advanced cooperation across continents. This blend of new tech and a flexible mindset that breaks down corporate barriers creates energy and synergy, driving collective innovation.
“Our organization is full of unique individuals, and collaboration makes ideas even better. Breaking silos and working together has significantly improved the quality of our ideas,” says Hila Koren.
As part of the Reactor Program, ICL has established four professional labs: biomimicry, future thinking, inventive thinking, and artificial intelligence.
Lior Frimet explains: “Each lab includes people from all business units and head units, including the CTO and IT. We use AI tools, chatbots like ChatGPT and Perplexity, and data mining tools we’ve developed to generate ideas, create business models, and bring them to proof of concept. This is a very exciting concept at ICL!”
ICL’s collaborative approach proves that effective innovation comes from teamwork, establishing it as a hyper-innovative company.
By fostering collaboration across all levels, ICL has demonstrated that innovation in corporate organizations is most powerful when it’s a collective endeavor, setting a standard for others to follow.
Myth 4: Innovation is Spontaneous and Random
“Innovation needs to be managed like any other business process. With structured programs and clear steps, we ensure that innovative ideas are developed and implemented effectively.”
— Hila Koren
The final myth is that innovation is a spontaneous process that occurs randomly. The apocryphal story about Isaac Newton discovering the law of gravity when an apple fell on his head is a case in point. There’s no doubt that anyone can experience a flash of inspiration or sudden insight, but most innovation in corporations occurs within a structure and is the result of an organized process—usually built around effective teamwork.
Driving innovation in a large corporate setting is both a strategic and operational process. Sustained innovation – a perpetual process of adaptation, improvement, and growth – requires several factors to succeed including
- Structured processes and frameworks
- Adequate budgets and resources
- A willingness to break down traditional silos
- Clearly defined roles and effective management
- Metrics to assess and quantify milestones and results
- Clear rewards and incentives for successful innovation
- A culture that neither fears nor penalizes failure in innovation.
ICL programs like BIG, the Lighthouse (supporting optimization), and Reactor (supporting new business models and new products) are designed to overcome traditional obstacles to innovation in corporate culture and are supercharging the process.
More on the subject:
ICL Planet Startup Leaps Forward
Meet ICL’s Open Innovation Landscape and Initiatives
Innovation Starts from Within
Continuing to Drive Systematic Innovation in Corporations
We’ve hopefully debunked four fundamental myths about innovation and demonstrated that it’s not exclusive to startups, does not always require high-tech, expensive solutions, thrives on collaboration, and benefits from structured processes.
By dispelling these myths, ICL has fostered a vibrant, innovative culture that drives progress and maintains its competitive edge. The company’s initiatives, such as the BIG program and the Reactor Program, exemplify how structured support and a collaborative environment can unlock the tremendous potential within large organizations.
Driving innovation in large corporate organizations is easier and more cost-effective than many realize, and the benefits are clear. Innovation belongs to everyone!
By providing the right structures, resources, and support organizations can foster genuine collaboration and drive significant growth. Properly channeled and managed, innovation will thrive in any sector or business and is the key to future growth!
