Another advantage of decentralization is that the quality of an idea increases. C-level executives may not know the exact pain points of specific markets as much as a regular mid-level manager would.
This knowledge of the manager might help him/her create a better innovation strategy than a high-level executive.
If your industry is fast-moving and your products and customers are constantly changing then delegating authority is required for better innovation management. In such industries, experimentation is necessary and decentralization of innovation management serves as the perfect solution.
Through experimentation, you can easily know what’s working and what’s not. Also, delegating authority in the organization enables people to respond quickly.
Drives Employee Engagement
Several organizations today encourage employees to share new ideas, opinions, and innovations by rewarding them with bonuses, awards etc. This not only encourages employees to generate more innovative ideas but also makes them feel more valued and engaged.
A decentralized innovation system boosts employee engagement.
In a firm full of highly qualified employees, a restricted centralized environment might produce disastrous results, as such people expect a greater degree of freedom when it comes to innovation management.
In addition, a decentralized framework makes different departments in an organization to collaborate when it comes to innovation management and idea generation.
Lower Risks
In a centralized framework, a single mistake by a C-level executive can impact the entire business globally. One poorly thought-out innovation strategy by a CEO or COO or CTO can topple the whole company.
Whereas in a decentralized environment, even if the regional manager makes a big snafu, the after-effects would be limited to that single unit and few senior managers can quickly step-in and resolve the issue.
Read more: An Introduction To The Ultimate Idea Management Solution – Wave
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Jagan Jami