The organization should regularly determine:

a) external and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcomes of its innovation management system;

b) areas of opportunity for potential value realization.

The organization should regularly scan and analyse the external context, considering issues related to the:

a) different areas covering economic, market, social, cultural, scientific, technological, legal, political, geo-political and environmental aspects;

b) geographic scope, whether international, national, regional, or local;

c) past experience, present situation, and potential future scenarios;

d) speed of, and resistance to, change;

e) likelihood and potential impact of trends;

f) potential opportunities and threats, also those that might result from disruptions;

g) interested parties.

The organization should regularly analyse its internal context, including capabilities and assets, considering issues related to:

a) its vision, ambition-level, strategic direction, and core competencies;

b) existing management practices, organizational structures and use of other management systems;

c) overall performance of the organization and its innovation performance, e.g. achievements and failures over the recent past and compared with other relevant organizations;

d) operational aspects, e.g. processes, budgeting, controlling, and collaboration;

e) potential and maturity (position on the life cycle) of current offerings and value realization models;

f) the uniqueness of its people, knowledge, skills, technologies, intellectual property, ecosystems, branding, partnerships, infrastructure, etc.;

g) adaptability of strategies, processes, resource allocation, etc.;

h) cultural aspects such as values, attitudes, and commitment at all levels of the organization;

i) the innovation competencies of its people over time.

External interested parties can be users, customers, citizens, local community, special interest groups, partners, external providers, consultants, unions, competitors, owners, shareholders, funding organizations, regulators, public authorities, standards bodies, industry, and trade associations.

Internal interested parties can be employees at all levels and other persons working on behalf of the organization.

The organization should determine, monitor and review:

a) the interested parties, internal or external, current or potential, that are relevant to the innovation management system and the areas of opportunity;

b) the relevant needs, expectations, and applicable requirements of these interested parties;

c) how and when to interact or engage with relevant interested parties.

The needs and expectations of interested parties can be related to:

a) current or future needs and expectations;

b) stated or unstated needs and expectations;

c) value realization, both financial and non-financial;

d) different degrees of novelty and change, from incremental to radical;

e) existing markets or the creation of new markets;

f) any product, service, process, model, method, etc.;

g) offerings within, adjacent to, or more distant from, the current scope of the organization;

h) the enhancement or replacement of current offerings;

i) the organization itself or to its value chain, network, or ecosystem;

j) statutory and regulatory requirements and compliance commitments.

The organization should determine its innovation intent and the boundaries and applicability of the innovation management system to establish its scope.

When determining this scope, the organization should consider:

a) the external and internal issues and areas of opportunity referred to in 4.1;

b) the relevant needs, expectations and requirements of interested parties referred to in 4.2;

c) interactions with other management systems.

Innovation intent can describe the scenarios of what could be possible in areas of opportunity, when faced with uncertainty.

When describing the scope, the organization should consider, e.g. offerings, processes, structures, functions, partners, collaborations, geographical, and time coverage, that are within or outside the scope.

The scope should be reviewed and amended when necessary and be available as documented information.

The organization should establish, implement, maintain, and continually improve an innovation management system, in alignment with the innovation intent, including the processes and support needed and their interactions, in accordance with the guidance of this document and the innovation management principles.

The innovation intent is the basis for determining the innovation strategy. It is enabled by a supportive culture and through collaboration.

The organization should promote a culture that supports innovation activities, with the aim to enable the coexistence of creative and operations-oriented mindsets and behaviours as both are needed to innovate.

4.4.2.1 The organization should consider providing a work environment characterized by:

a) openness, curiosity, and user focus;

b) encouraging feedback and suggestions;

c) encouraging learning, experimentation, creativity, change, and challenging current assumptions;

d) encouraging risk-taking and learning from failure while keeping people engaged;

e) networking, collaboration, and participation internally and externally;

f) diversity, respect, and inclusiveness of different people, disciplines, and perspectives in innovation activities;

g) shared values, beliefs and behaviours;

h) balancing assumption-based and evidence-based analysis and decision-making;

i) balancing linear and non-linear planning and processes.

4.4.2.2 Organizations with a culture supporting innovation activities often have:

a) leaders at all levels that promote and demonstrate their commitment to innovation activities;

b) management of the coexistence of, and the effective transitions between, the different innovation activities, in terms of values, beliefs, and behaviours in the organization;

c) support and recognition of innovators, innovative behaviours, innovation initiatives, and innovation storytelling;

d) incentives for innovation achievements, with the focus on intrinsic motivators, e.g. increased autonomy and an inspiring purpose, rather than extrinsic motivators alone, e.g. monetary rewards;

e) development of competencies which support innovation activities;

f) assessment of the culture using relevant indicators;

g) structures for multidisciplinary collaboration.

The organization should establish an approach for the management of internal and external collaboration. Collaboration aims to facilitate sharing and access to knowledge, competence, other intellectual assets, and resources.

The organization should consider:

a) the innovation strategy, objectives and existing capabilities, resources, knowledge, and competencies;

b) the diversity of experiences, disciplines, competencies, perspectives, etc.;

c) different approaches, methods, rules, and agreements for external collaboration;

d) issues of intellectual property;

e) regularly reviewing and aligning the strategic relevance of collaborations;

f) the importance of respect, openness, and trust between parties.

Collaboration can support activities such as identifying user needs, expectations, and challenges, sharing of ideas, knowledge, competencies and know-how, accessing infrastructure, portfolios, markets, and users, acquiring new competencies, and resources, and jointly implementing innovation operations.

Collaboration can involve persons from the same or different teams, departments, units, and functions within the organization. It can involve users, customers, partners, providers, academia, industry and trade associations and other relevant interested parties and networks external to the organization, including parties outside of the own value networks.