So-called leap innovations divide our world into a before and an after. They form the basis for a society’s prosperity. The latest innovation of this kind from Germany is the MRNA vaccine from Biontech. Artificial Intelligence will also produce many leap innovations. But true innovation is no coincidence – it requires careful preparation. Sustainable innovation is hardly possible without optimised processes and seamless data integration. This article therefore explains why companies need to do their homework in these areas in order to create something truly new. 

Reality Check 2024: The status quo of companies 

This year, many companies are facing major challenges when it comes to digitalisation and innovation. Despite significant investment in new technologies and processes, many companies are still struggling with fundamental problems. 

  1. Technological deficits 
    Many companies are still working with outdated technologies that are not only inefficient, but also limit their ability to innovate. The integration of new systems is often hindered by existing infrastructures that are not designed for today’s requirements.

  2. Data management problems 
    Data is the lifeblood of modern organisations. Yet many of them struggle to manage and integrate their data effectively. This leads to information silos and a lack of transparency, which hinders decision-making and ultimately the ability to innovate.

  3. Cultural barriers 
    Another major obstacle is the corporate culture. In many companies, there is still an attitude of stability and security that is hostile to change and innovation. This fear of innovation can lead to new ideas being nipped in the bud.

A survey by OutSystems on the subject of technical debt has revealed that companies waste 40 percent of their annual IT budget on legacy maintenance alone. This is the equivalent of around five months’ budget. So if organisations continue to build new systems on top of existing legacy systems, their technical debt will grow exponentially. As a result, more and more of their IT budget will be required for maintenance, further limiting their capacity to develop new products and services. A multitude of small decisions lead to the accumulation of technological debt, preventing companies from investing in new innovations or services. These short-sighted decisions often result from the pressure to deliver quick solutions and results without considering whether they will last in the long term and provide the necessary speed and flexibility for future change. 

Process optimisation lays the foundations 

Process optimisation is the first step on the path to innovation capability. It involves systematically analysing and improving existing business processes in order to increase efficiency and effectiveness. Process optimisation refers to the continuous improvement of processes and working methods in order to make better use of resources and increase productivity. 

Steps for process optimisation: 

  1. Analysis: Recording and evaluation of current processes. 

  2. Planning: Development of strategies for improvement. 

  3. Implementation: Realisation of the planned changes. 

  4. Monitoring: Monitoring the new processes and adapting them if necessary. 

A successful example of process optimisation is Toyota with its lean management approach. By continuously improving and eliminating waste, the company was able to significantly increase its efficiency and promote a culture of innovation. 

The role of data integration 

In addition to optimised processes, effective data integration is crucial for the success of innovations. It enables companies to collect relevant data from different sources, standardise it and make it usable. In this context, data integration refers to the combination of data from different sources in order to obtain a consolidated view and utilise it for business decisions. 

Advantages of data integration: 

  • Increased efficiency: automated data flows reduce manual effort and errors.
  • Better decision-making: Integrated data enables informed decisions based on comprehensive information.
  • Improved customer experience: By combining customer data, personalised and targeted marketing strategies can be developed.

There are various methods and tools for data integration, including ETL (Extract, Transform, Load) processes, APIs and modern data platforms such as data lakes and data warehouses. 

The synergy effects between process optimisation and data integration are enormous. By combining both approaches, companies can maximise their efficiency and significantly increase their ability to innovate. Optimised processes ensure smooth workflows, while integrated data provides a sound basis for decision-making. Together, they enable an agile and responsive organisation. Companies such as Amazon and Google use both optimised processes and advanced data integration to continuously innovate and maintain their market leadership. 

The path to innovation capability 

To become innovation-ready, organisations need to be systematic and follow best practices. These include: 

  • Culture of change: promoting an open and innovation-friendly corporate culture. 
  • Continuous improvement: Regularly reviewing and adapting processes. 
  • Technological investment: Investing in modern technologies for data integration and process automation. 

Conclusion

Optimised processes and data integration are not luxury options, but necessary prerequisites for sustainable innovation. Companies that do their homework in these areas are better equipped to succeed in a rapidly changing world. The future therefore belongs to those companies that are prepared to continuously learn and adapt. With optimised processes and a solid database, they can become the innovation leaders of tomorrow. 

Evaluate your current processes and data integration strategies. Start optimising them now to ensure your company’s ability to innovate.

Tags:
#Automatization #Data integration #Digitalization #Innovation #Optimised processes #Tools

About the author

Mathias Herrmann

CEO at ALLEHERZEN

Mathias Herrmann is an internet entrepreneur going back to the Internet’s early days with a deep interest in digital and future technologies. For over 20 years, he has been helping companies make the most of their data by forging innovative solutions – without forgetting the people behind the data.

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