“Innovation distinguishes between a leader and a follower.”

These words of Steve Jobs, co-founder of Apple, describe the global corporate scenario more aptly today than ever before. In a world where availability of traditional factors required for business, such as technical skill, technological know-how, financial resources and productivity enhancement models, are only a matter of economic allocation, rather than opportunity, what truly defines who will determine the rules of the game is innovative ability.

How does one define “innovation”? There are as many definitions as there are proponents, observers and practitioners. This only seems to suggest that innovation is a multi-faceted phenomenon, which can change forms in different contexts and which can be an all-pervading driver of organisational and individual actions. It may be worthwhile then, to focus attention on what makes an organisation innovative. What makes an innovative culture?

It is universally accepted that an ‘innovative culture’, by default, implies that every individual takes responsibility for innovation. However, the initial push in this direction, and it must be a BIG push, has to come from the top. The leadership’s initiative and continued involvement has to be seen by every level of the hierarchy not only in letter, but also in spirit.

Another key ingredient is the way information is handled in the organisation. For teams and groups focussed on delivering innovative projects, withholding of critical information can be a huge impediment and a dampener on morale. Smooth organisational communication flows and effective knowledge management must be a priority for innovation to thrive.

A business is sustainable only if it answers to a (spoken/ unspoken) need of a customer. Innovation simply for the sake of innovating will not gain currency in the market. It must be tied to customer needs. Thus, a focus on customer centricity is a critical ingredient in an innovative culture.

Finally, efforts towards innovation must be not only effective but also efficient to deliver the greatest value. Thus, an accent on technology-enabled processes and systems is crucial. These investments often enhance the synergistic value of innovation.

More and more Indian corporate houses, including Mahindra & Mahindra, are now beginning to appreciate the critical role that innovation will play in their ability to take the lead in the marketplace. Some others, like the Tatas, have demonstrated such breakthroughs already. It appears that there are exciting and innovating times ahead for India Inc.