Leadership Circle: Innovation In Indonesian Companies
Indonesia is irresistible.
Foreign investors want to be part of this huge, diverse, youthful and growing nation. Foreign investors bring innovation. These innovations may just disrupt a good many industries in Indonesia.
Indonesian companies can choose to ‘sell out’ or change. The key to controlling your own destiny is to understand yourself, to innovate and adapt to the changing circumstances.
Innovation is often automatically equated to technology. Buying and implementing technology is a quick fix, it is too easy. The real innovation is in changing the way you do things. To change the way you do things, the method, you need to have the right mindset, the right company culture.
As an example probably the two biggest innovations of capitalism were not technological, they were about the way of organizing. Firstly the “Division of labour” as described by Adam Smith in the Wealth of Nations is a most fundamental innovation. This allowed us to increase productivity, standardization and throughput.
The second fundamental innovation is the creation of the joint stock company and the issuing of shares or stock. The first shares ever were issued for the Dutch East Indies (VOC) company.
Indonesian companies need to work on the mindset of employees in order to foster innovation. That’s what this article is about.
In my opinion there are 5 obstacles to innovation in Indonesian companies:
1) The fear of failure
2) A lack of critical thinking
3) Conflict avoidance
4) Superiors rarely say, ‘I don’t know’
To counter these obstacles requires the willingness to change plus lots of daily practice.
10 October, we held our first leadership circle meetup in Dimension Data. I presented the above obstacles and we did a breakout to come up with solutions as a group.
If you want to learn more about the 5 Obstacles and the 21 Solutions for Innovating in Indonesia, please download the full whitepaper here.
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