In the beginning innovation is about good ideas, says Australian Customs Chief Information Officer Murray Harrison. “But then you need to relate them to the tasks you are trying to achieve. Innovation needs to meet the requirements of the business case.

“An innovative environment is one where you can consider everyone’s good ideas, but they have to lead to an outcome. There is no point in innovating if you are not going to get results.”

An innovation tenant at Digital Harbour, Australian Customs manages the security and integrity of Australia’s borders. It’s a large organisation employing over 5,000 people in Australia and overseas. And it’s a big user of technology.

Customs is in the process of sourcing a mix of technology vendors that can partner with Customs and offer innovative technology solutions. “Part of that thinking is how we use innovation, and that’s factored into the contracts,” says Mr Harrison.

“People talk about innovation, but they’re not sure how to do it. We’re in the process of setting up an innovation framework, and we’ll measure it in terms of change and outcomes.”

But the challenge is in convincing the vendors. “If they do a project better in less time, then there’s less work for them,” he says.

Mr Harrison sees innovative ideas helping the organisation save money, provide more efficient services, reduce equipment, and increase their green credentials. But the key to innovation is also money. “You need to create an environment with money put aside for innovation,” he says.

Technology also has a role in innovation, but Mr Harrison asks, is the technology driving the business or is the business driving technology? “The standard mantra used to be that business drives technology. But a partnership approach is more sensible.

“It is technology’s responsibility to make business understand what technology can achieve, and how new technology can help business. The world is a lot more connected and we can get results a lot quicker. We achieve more because of technology - there’s no argument that technology has achieved productivity gains and service improvements.”

But the biggest innovation related challenge isn’t technology, but the human factor. It all gets back to people and how they deal with change, says Mr Harrison. “Change management is always the biggest challenge. You need to explain to people the reason why an organisation is doing something, and convince them to buy in and take advantage of all the possibilities of innovation.”

Mr Harrison talks of the days when people put paper based systems on the computer, without any changes to the processes. “That doesn’t work. The change management challenge is that there is a new capability (the digital world has to offer) and we need to take advantage of that. This is challenging to people who do it the old way.

“Innovation is a greater challenge than just change. It is a quantum leap rather than an evolutionary change. Organisations are used to what works, warts and all, and are reluctant to change it.”

So what’s more important, having a culture of innovation, or a process of innovation? You need to have a process and a structure for innovative practices, otherwise you won’t get the idea to fruition, says Mr Harrison. “But if you don’t have the culture, you won’t generate the idea in the first place.”

published 12 December 2007