Owner-driven innovation is a type of innovation where the owner of the company drives the innovation process. This type of innovation is usually seen in small businesses where the owner is also the CEO, CTO, or sole inventor.
The Innovation Value Pyramid shows that organisations that solely innovate from the owner have the lowest enterprise value. They are typically small businesses that are not able to scale or grow. The highest value is attributed to organisations that have a culture where innovation is autonomous. These companies often have a deep understanding of their customers and the market, which allows them to continually create new products and services that meet customer needs.
Owner-driven innovation is a great way for small businesses to get started with innovation. The owner is able to make decisions quickly and doesn't have to go through a lot of bureaucracy to get things done. Additionally, the owner has a lot of personal investment in the company and is more likely to be passionate about their product or service.
However, there are also some disadvantages to owner-driven innovation. First, the owner is limited by their own knowledge and skillset. They may not have the ability to come up with new ideas or solve complex problems. Additionally, since the owner is driving the innovation process, there is a risk that they will become bogged down in details and lose sight of the big picture.
Then there is the matter of risk. As the owner, the risk of failure falls entirely on your shoulders. If the company goes bankrupt, you lose everything. You also have less room for error since you don't have a team of people to help you out.
In what circumstances might you want to opt for owner-driven innovation?
Owner-driven innovation can be a great choice for business owners that are just starting out or have a limited budget. If you're not sure what you're doing or don't have the capital to invest in a team of researchers and developers, owner-driven innovation is a good way to get started. Additionally, if you have a strong connection with your customers and are confident that you know what they want, owner-driven innovation can be a great way to stay ahead of the competition.