Let us briefly consider the meaning of the essential words in the title: “systems” and “innovator” (defining “being” is something we will leave to the philosophers).
Systems are the object of particular designs. Broadly speaking, systems involve the organization of things, logical and physical. Systems include data, processes, policies, protocols, skill sets, hardware, software, responsibilities, and other components that define the capabilities of an organization. Systems include human and non-human aspects. The components, or parts, of a specific system can be either real or abstract. Components comprise an aggregate “whole” where each component of a system interacts with at least one other component of the system. Cumulatively, all the components of a system serve a common system objective. Systems may contain subsystems, which are systems unto themselves that include a smaller set of interactions among components for a more narrowly defined objective. Systems may also connect with other systems. The following diagram (Figure 1.1) illustrates an example system.
Innovation is the process of “making improvements by introducing something new” to a system. To be noteworthy, an innovation must be substantially different, not an insignificant change or adjustment. It is worth noting that innovation is more a verb than a noun in our context. Innovation is similar to the word evolution, which derives from the Latin root for staying “in motion.” Systems innovations often include an expectation of forward motion and improvement. To be worthwhile, innovations must be worth the cost of replacement, substitution, or upgrades of the existing order.
The term innovation may refer to both radical and incremental changes to products, processes, or services. The often unspoken goal of innovation is to solve a problem. Innovation is an important topic in the study of economics, business, technology, sociology, and engineering. Since innovations are a major driver of the economy, the factors that lead to innovation are also critical to government policy-makers. In an organizational context, innovations link to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. All organizations can innovate, including for example hospitals, universities, and local governments.
Rather than construct a narrow definition of innovation, it is useful to think of innovation as including, but not limited by, a few key dimensions. Successful innovations include these dimensions.
The first dimension is that of innovation form. Innovations manifest in many ways, but generally are either tangible or intangible. Tangible innovations result in new goods, services, or systems that you can physically touch. Examples include the introduction of new products or a style of architecture. Intangible innovations include the creation of new services, processes, modes of operating, or thinking. Intangible innovations might introduce greater efficiency into an existing process or create an entirely new way of doing something. For example, an innovation could reduce the time required to manufacture a car. This intangible innovation might translate into greater profits for a car manufacturer.
The second dimension is that of innovation degree. Innovation degree compares a particular innovation to that of the status quo. In 1980, a researcher named John Hage introduced the concept of “radical” versus “incremental” innovation. An incremental innovation introduces an idea, process, or technological device that provides a slight improvement or causes minor change in a normal routine. Sometimes the impact of incremental innovation may require only minor adjustments in the behavior, processes, or equipment associated with a system. A manufacturing facility upgrading to a new version of software that provides additional features to enhance existing operations is an example of an incremental innovation.
Conversely, radical innovations introduce an idea, process, or technological device that dramatically alters a current system. For example, if a manufacturing firm acquired a new technology that allowed the firm to completely redefine and streamline its production processes, then this new technology represents a radical innovation. Often radical innovations involve not only new technologies and processes, but also necessitate the creation of entirely new patterns of behaviors.
Systems innovators are individuals who design and implement innovations. To design refers to the process of developing a structural plan for an object. Systems innovators are individuals who transform the practice of organizations, markets, or society by making significant forward moving improvements. Systems innovators seek to designs that improve on the old to take advantage of new technologies, new techniques and new practice and processes. We would suggest that systems innovators not only recognize that social and economic structures are all human-made, but also recognize that human structures are always open to changes, enhancements, and redesign.
It is important to recognize that systems operate within systems. Identifying the connections and layers of these systems will make you a successful systems innovator. Often identifying new connections or new layers that no one else has identified yet can provide new opportunities for innovation.
This book seeks to discuss with you the capabilities, approaches, and skills required of the systems innovator in the 21st century. How does one prepare for the assessment, evaluation, design, and implementation of the improvements to systems, particularly those that incorporate information technologies, particularly those systems that incorporate information technologies?
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