“Innovation Doesn't Have to Be a Chaotic Process”
After years of development, the International Organization for Standardization (ISO) has created a groundbreaking framework for innovation leadership. At a recent conference in Peru, discussions around this new standard were passionate and, at times, political, but ultimately fruitful, according to Annika Steiber, part of the U.S. team.
With expertise from studying how companies like Google and Tesla in Silicon Valley operate, Annika Steiber emphasizes that innovation requires more than creative individuals or great ideas and a process—an entire system must be in place.
“It’s not enough to have creative people or great ideas; the whole management system for innovation needs to function cohesively,” she says.
The new standard, published in September, aims to help businesses transform innovation from a sporadic effort into a structured, repeatable process.
“By learning from the best practices embedded in the standard, companies can take a shortcut to effective innovation leadership,” Steiber says.
Annika Steiber is representing the U.S. as part of the American ISO team.
The Heart of the New Standard: Portfolio Management
A key element of the new framework is portfolio management, akin to the structured development pipelines used in the pharmaceutical industry.
“You need a flow of ideas and concepts that are quickly assessed for potential,” Steiber explains. “Some get prioritized, and others are dropped early on. This structured process provides companies the discipline needed in innovation work and enables them to focus resources on innovations with the highest potential impact.”
Many companies, she notes, lack this priority function in their innovation work.
“Most companies don’t have portfolio management which they need to prioritize what truly creates value for the company and their customers moving forward.”
Global Collaboration and Cultural Nuances
The Conference in Peru’s capital Lima was a step in the global rollout of the new standard, ISO 56001. In total, 57 countries were represented in Peru by each country’s innovation experts. Steiber described the discussions as both challenging and rewarding.
“It was fascinating and at times emotional and political, but in the end, fruitful. Different nations have unique perspectives, and even simple terms sparked significant debates. Terms and definitions were fiercely debated, underscoring the cultural nuances involved.”
Several countries play leading roles in developing and implementing the new standard.
“The U.S. has one of the strongest voices, being a successful innovation nation. But Sweden also has a very strong role,” Steiber says. “Sweden was among the first countries to begin exploring these aspects of innovation.”
Norway is also taking an active part, but the rest of the Nordics have a lower profile.
“I don’t understand why Finland and Denmark aren’t more active,” she says. “They are very skilled, yet their participation seems limited.”
Hosting the conference underscored Peru’s ambitions in the field of innovation. In a speech at the conference, the president stressed the importance of innovation for its economic future.
“Peru is eager to build several strong innovation ecosystems,” Steiber reflects. “They aim to enhance their innovation capacity by drawing on global expertise.”
Steiber also highlighted China’s growing role, particularly in the area of intellectual property (IP), and Japan’s active involvement. However, she expressed surprise at the absence of certain nations.
A Game-Changer for Businesses
As the new standard rolls out globally, Steiber believes it will transform how companies approach innovation, particularly in more traditional industries. She noted that businesses can now be certified under the new framework, a development she sees as pivotal.
“This is going to be a game-changer for businesses seeking a structured way to manage innovation,” she says. “It’s surprising that companies often have to be quality-certified but not innovation-certified. Now, they can be both, and if the organization already is ISO 9001 certified, it will be quite straightforward to become 56001 certified.”
In the future, businesses could also expect a complementing framework for managing not only internal innovation, but also how to manage innovation ecosystems, an area inspired by market leaders such as Google, Tesla, and Haier, and now prioritized by the ISO innovation community.
Over 90 countries are involved in the work, with around 30 observing and 60 actively contributing. Global adoption of this framework is poised to reshape how innovation is managed. Steiber is optimistic about the future of innovation, stating that the standard brings much-needed predictability and discipline to a process often viewed as unpredictable.
FACTS
Annika Steiber is an expert in innovation and management, with a Ph.D. in management of technology. She has conducted research on innovation systems in Silicon Valley, particularly focusing on companies like Google, Tesla, Meta, and Chinese companies such as Haier. Steiber has authored several books on innovation leadership and serves as a senior professional advisor and professor at various universities, including Menlo College.