Exnovation

Exnovation has an opposite meaning than innovation [reverse of innovation]. As it is well know innovation is understood as a process of converting the existing possibilities to new ideas and putting them to practical use. Exnovation is a term used in broadly understood management and commerce and means stabilization of the last innovation. In situation when products/processes have been tested and finally confirmed to be the best from all tested before, the exnovation occurs. Those products/processes are stabilized and standardized for no further innovations.

The very first usage of word "exnovation" was attributed to John Kimberly in 1981. Kimberly described the whole process of innovations as a cycle which in combination can be define as an innovation life cycle An exnovation is located at the very end of the innovation cycle where it discards or even purges existing practices to allow the organization to adopt different and fresh thinking to any new innovation activities. Exnovation can be also a new opportunity for old, well-worn practises. Exnovation can be a huge helper with situation we can't decide of what is working and what is not. Exnovation works as an examination and gives us the opportunity to jettison what is no longer relevant and the space to create something more relevant to the current project.

In 1996 strategy professor A. Sandeep introduced modern definition for a term exnovation. He realize that term of exnovation might be taken incorrectly by some. In his words exnovation does not actually mean propagating a philosophy of not innovating within the organisation. Exnovation in reality means that once a process has been tested, modulated and finally super-efficiently mastered and bested within the innovative circles of any organisation, there should be a critical system that ensures that when this process is replicated across the various offices of the organisation, the process is not changed but is implemented in exactly the same manner in which it was made super-efficient; in other words, no smart worker within the organisation should be allowed to tamper with the already super-efficient process A. Sandeep believes that organisations need to necessarily incorporate exnovation as a critical process within organisational structures.

Professor Sander explain the idea of exnovation on a very easy to understand example. Think about two call centers where customers call to complain about their lost credit cards. Imagine one call center when all employees are trained by exnovation managers to follow tried and tested responses and processes. And now try to imagine the second call center where each employee is allowed independence in innovatively deciding how to respond to the calling customer's lost card issue. Now answer the question which call center would ensure better productivity and customer satisfaction

Nowadays more and more companies apply exnovations to their product life cycles to enhance product profitability. Examples are: Walmart, Ford Motor Company, McDonald's and much more.

Examples of Exnovation

• In the automotive industry, exnovation can be seen in the process of standardizing parts. When a certain design for a part has been tested and confirmed to be the most efficient, it is standardized and used in production of all vehicles. This helps to reduce costs and improve efficiency.
• In the software industry, exnovation can be seen in the process of optimizing code. After a piece of code has been tested and optimized, it is standardized and used in all subsequent software releases. This helps to reduce development time and costs.
• In the food industry, exnovation can be seen in the process of standardizing recipes. Once a recipe has been tested and found to be the most delicious, it is standardized and used in all subsequent production runs. This helps to ensure consistent quality and reduce costs.

Advantages of Exnovation

Exnovation is a process of stabilization and standardization of the last innovation. It has a number of advantages, such as:

• Cost Savings: Exnovation allows companies to save money by eliminating the need to invest in further innovation and research. It also helps to reduce resources and labour involved in the process of innovation.
• Improved Efficiency: By stabilizing and standardizing the last innovation, exnovation helps to improve the efficiency of production and operations. This leads to increased productivity and improved customer satisfaction.
• Reduced Risk: Exnovation helps to reduce the risk of introducing new products and processes that may not be successful. It also helps to avoid the costs associated with failed innovation projects.
• Increased Predictability: Exnovation helps to provide a more predictable and stable environment for businesses. This allows them to plan ahead and make better business decisions.

Limitations of Exnovation

Exnovation has some limitations that should be considered before its implementation:

• It does not encourage the development of new ideas, as it focuses on stabilization of the existing ones. It does not motivate employees to come up with new products or processes, as there is no reward for such an idea.
• It can lead to stagnation of the company's progress, as it does not allow for further development. This can be especially damaging for companies in a highly competitive market, as their competitors may be able to outpace them.
• It can limit the creativity of employees, as they are not encouraged to explore new ideas. This can be detrimental to a company's growth and success, as creativity and innovation are essential for staying ahead in the market.
• It can lead to over-reliance on existing products and processes, which can be risky in the long-term. This can make a company vulnerable to changes in the market, as they may not have the resources to quickly adapt to them.

Other approaches related to Exnovation

To understand the concept of Exnovation better, it is important to consider other approaches related to it. These include:

• Disruptive Innovation - This is a process of introducing a new idea that drastically changes the existing market. It is often seen as a disruptive force in the industry, as it can create new markets and disrupt existing ones.
• Incremental Innovation - This approach is focused on improving existing products or processes. It is often seen as a more subtle form of innovation, as it does not usually cause a major disruption in the market.
• Business Model Innovation - This involves creating new business models that are specifically designed to maximize the profits of a company. This often involves introducing new strategies and tactics, as well as rethinking existing business models.
• Network Innovation - This involves creating and maintaining a network of partners and collaborators that share resources and knowledge. This is often seen as a way to gain competitive advantage in the market.

In summary, Exnovation is a process of stabilization of a tested and accepted idea or product. Other approaches related to Exnovation include disruptive innovation, incremental innovation, business model innovation, and network innovation. These approaches all focus on different ways to create and maintain a competitive advantage in the market.

Footnotes

Exnovation — recommended articles

Innovation and change — Innovation and entrepreneurship — Radical innovation — Value innovation — New paradigm — Golden hammer — Incremental innovation — R&D project — Total Innovation Management

References

• Sandeep A. (2011), The mother of all innovations
• Vitasek K. (2014), Innovate and exnovate
• Brown J. (2009), Should you "exnovate" your product portfolio?
• Kimberly J. (1981). Managerial Innovation. In: Nystrom, P. and Starbuck, W. (eds.), Handbook of Organizational Design-Volume 1. New York: Oxford University Press, pp.84-104.

Author: Agnieszka Krzystyniak