The Chief Innovation Officer (CIO) is responsible for identifying and implementing new ideas to increase profitability and keep a company at the forefront of the industry. The CIO develops strategies for innovation around the Internet, social media, and sustainability, while also creating a culture of innovation within the company. The position involves significant strategic planning and risk analysis.
A Chief Innovation Officer (CIO) evaluates internal systems and external opportunities looking for ways a company can increase profitability by implementing new ideas and operating in unexpected ways. While the concept of innovation has long been part of the corporate lexicon, the inclusion of a CIO position at the executive level demonstrates an increased commitment to operating at the forefront of the industry in a leadership role. A CIO creates a strategy to recognize and exploit opportunities and provides the evaluative expertise to manage risk to be a precursor to potential gain.
The chief innovation officer position was developed in response to the technological revolution that took place in the 21st century and greatly changed the landscape from business to consumers. Innovation has always been a goal in the corporate playbook. No company wants its products or operations to appear stagnant or outdated. The globalization of markets through the widespread use of the Internet, the rise of missed opportunities driven by technological advances, and the shift in the marketing paradigm as a result of increased two-way customer interaction, has given new urgency to corporate innovation. Many companies have decided that the best way to embrace the requirements of the 21st century mandate of “innovate or die” is to task someone specifically with driving the process.
In the old context, corporate innovation was largely functional. He focused on incremental improvements to brand strategy or operations, or spotting industry breakpoints or innovative opportunities. These tasks are still relevant to the chief innovation officer, but the most relevant aspects of the job involve developing a corporate culture of innovation sufficient to keep the company in a leading position through rapid changes in the marketplace. The CIO works with employees to define and implement an innovative work methodology that provides an outlet for individual creativity.
More importantly, the chief innovation officer has more responsibility for pursuing innovation opportunities. The CIO develops strategies to innovate around the Internet, social media and sustainability, three of the driving forces behind digital globalization. While manufacturing and operations were the main focus of corporate innovation in the past, marketing has become the canvas for innovative approaches as the barriers between businesses and consumers around the world come down.
As crucial as it is for a company to internalize innovation and identify new opportunities, no company can afford to pursue new opportunities indiscriminately. A chief innovation officer applies expert analysis and professional judgment to opportunities, weighing risks versus rewards. The position has a significant strategic planning component because the CIO is an important voice in determining the company’s direction.
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