Necessity is the mother of invention

Delegates at the Institute of Risk Management South Africa Cruywagen Risk Lab in Cape Town heard why it is when businesses are struggling that they should be innovating The missed opportunity is one of the greatest risks – a favourite saying of Gert Cruywagen, the mastermind behind the Institute of Risk Management South Africa (IRMSA) Cruywagen Risk Labs. Speaking at the recent Risk Lab in Cape Town, he again voiced his concerns that too many organisations consider the here and now, without looking beyond the obvious. And he was backed up by Terence Singh, of Matchi.Biz. Speaking about innovation, Mr Singh stressed that innovation is not about having a good idea. Innovation, he said, is about delivering a good idea and is not necessarily about creativity or technology. Mr Singh said that everyone is capable of good ideas but it is the person who translates that into a marketable product who is the actual innovator. Innovators will not necessarily have a good idea – they may simply spot something that already exists and market it in a new way. “Innovation is taking an idea to market and creating value for someone. You should not be limited as to how you think about it,” he suggested. For example, the first touchscreen product did not come from Apple but they are the organisation who made it a success. New approaches Innovation can be a product design but risk managers should not exclude thinking about a particular philosophy or even a new approach on pricing from their list of innovations. Firms often consider innovation as too costly and want to see proof something will work – a contradiction, said Mr Singh, when the whole point is that it is something untried. Organisations must be more willing to fail, even when times are hard and budgets are tight. “Necessity is the mother of invention, as the saying goes,” he said, “and it is when businesses are struggling that they should be innovating.” Innovation, he said, spurs growth in the economy – something that South Africa needs right now. But he is aware the companies will put all kinds of hurdles in the way – excuses will include things like: not enough growth in the economy; not enough customers; too much regulation and red tape. However, Mr Singh countered that, in fact, innovation spurs economic growth. He claimed that some 50% of US economic growth can be directly attributed to an innovation of some kind. And instead of the naysayers’ fears that innovation would cost jobs, the digital revolution has, in fact, created jobs and spurred economic growth. Innovation does not need to be costly either, he said. Innovations such as the hippo roller (portable water carriers now being used across rural Africa) are changing people’s lives on a huge scale and have not cost very much – just a good idea that has been easily translated. Mr Singh explained: “The hippo roller is a 25-litre drum which can be rolled by a child. No more countless trips every day to fetch water – instead one trip sorts the family out for the day, freeing up family members to farm and work, and even go to school. It is having a huge impact for country economies.” Need for innovation South Africa sits at number 57 in the innovation index, according to Mr Singh. He said it could be higher up the list, pointing to the correlation between innovative countries and their growing economies. Across Africa, Tanzania, Burundi, Rwanda, Kenya, Uganda, Malawi, Senegal and Mozambique are all climbing up the index, while Mauritius already sits at number six. “These countries are among the fastest growing on the continent (and the world) and are improving year on year,” he said. As risk managers, he concluded, there is much that can be done to improve the working environment and in nurturing innovation. “We have to move away from the notion that all risk is bad,” he suggested. “You are supposed to take a risk. If you have a current risk level, try to find a way to lower that risk level. Are you aware of all the technology that is available to mitigate that risk?” Find out, he advised, and then think about changing the culture within; ultimately it could prove to be a more profitable result than expected.

Necessity is the mother of invention

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