Page 20 - IIA MAGAZINE_March 2017_English

TO COMMENT on the article, Innovation
EMAIL the author at adilbu@mailme.ae

Innovation Governance is the 1. Why is the Company innovating? – Do • Do they encourage sensible
organization’s mechanism to achieve all stakeholders know the importance risk-taking?
the following: of innovation, and share the reasons
• Align goals – innovation goals with why the company needs to innovate, • Do they have a compensation sys-
and how this relates to the corporate tem that encourages entrepreneur-
business growth, vision and objectives? ship and teamwork?
• Allocate resources – build qualified
2. What are the Company’s innovation • Have they created an environment
teams, and priorities? – Where will the company that facilitates networking and com-
• Assign decision-making authority for focus its innovation efforts? munication in all directions?

innovation. 3. What level of innovation does the 5. With whom is the Company inno-
At a more detailed level, Innovation Company want? – Is the Company vating? – Concept of “open-source
Governance covers an organization’s looking for breakthroughs, and willing innovation” – building on ideas and
systems and processes that: to embrace uncertainty, or favoring technologies from third parties.
• Define innovation commitments a more prudent approach through
• Define key responsibilities of the main incremental innovation and lower level 6. Who will be/is responsible for what,
of funding? regarding innovation? – Specific inno-
players vation management responsibilities at
• Establish the set of values for all inno- 4. How can the Company innovate more all levels, owners of all key innovation
effectively? – processes.
vation efforts • What process will take most time,
• Define innovation expectations and be cost-effective, from new In conclusion, when Internal Auditors
• Define how to measure innovation market needs and ideas, to success- plays a role in reviewing innovation
• Make decisions on innovation budgets ful market introduction? governance, they would be helping in the
• Balance and prioritize innovation • What organizational effort is re- identification of major risks in the process.
quired? This would help the organization in better
activities across divisions • What tools will be/are used for understanding the challenges associated
• Establish management routines implementation? with the various innovation initiatives it is
• What measures will be/are tracked? undertaking, and therefore allow it to grow
regarding communications and deci- • How is a climate of creativity and and ensure its continuity in the market/
sions discipline being developed? industry.
The following are the areas that Internal
Auditors should look at as part of their
review of whether an organization has a
comprehensive innovation governance
system in place:

1. False: In business, innovation is the act of applying 7. True: The key to innovation is to ask questions that open
knowledge, new or old, to actually creating something people to possibilities, new ways of looking at the same
different that has value data, and new interpretations of the same old thing

2. False: Innovation is a discipline that can (and should) be 8. True: Most companies focus on using internally generated
planned, measured, and managed. ideas based on known facts to produce slightly better
products
3. False: Everyone has the power to innovate by letting
their brain wander, explore, connect, and see the world 9. True: Most organizations are physically set-up with little
differently interactions between functions, except where needed for
work. People often withhold information, believing that it
4. False: In most organizations, the biggest obstacle to puts them in a position of power
innovation is what people already know to be true about
their customers, markets, and business 10. True and False: The answer is “it depends.” Research
shows that customers can be a good source of ideas
5. False: It is important to bring new products and services for improving existing products and services. For new
to market. But the most important form of innovation, unknown products and services, customer research is not
and the #1 challenge, is reinventing the way we manage sufficient
ourselves and our companies

6. False: New ideas are a dime a dozen. The hard part is
turning those ideas into new products and services that
customers value and are willing to pay for

Adil Buhariwalla,
FCA, CIA, CFE, CRMA, CI31000, CT31000, Managing Partner – MASC International

5 Innovation Management .se: What is Innovation Governance? Definition and Scope - http://www.innovationmanagement.se/2013/05/03/what-is-innovation-governance-definition-and-scope/

20 INTERNAL AUDITOR - MIDDLE EAST MARCH 2017