Corporate innovation is at a real crossroads. To get a read on what’s happening, I sat down in Stockholm with Magnus Karlsson, Partner at Amplify, National Expert & Chairman of SIS/TK 532 Innovation Management at the Swedish Institute for Standards, and Adjunct Professor at KTH. Magnus has been in the innovation trenches for decades, so I wanted his take on what’s working, what’s failing, and what leaders need to know right now.

The Innovation Lab Exodus

You’ve probably noticed it. Innovation labs are dropping like flies. Google’s X and Area 120, Walmart’s Store No. 8, IKEA’s Space 10, and Volvo Labs have either shut theirs down or completely reimagined them. Several U.S. Agency for International Development (USAID) labs, including the Soybean Innovation Lab (University of Illinois) and the Horticulture Innovation Lab, and Lab for Markets, Risk and Resilience (UC Davis), are slated to close in 2025. Even earlier, Denmark’s MindLab and Mexico’s Lab for the City closed in 2019 when governments shifted their focus from innovation to digital transformation.

According to InnoLead, the average Chief Innovation Officer lasts just 4.4 years in the role. That’s shorter than most CMOs. This isn’t a talent problem or even a budget problem. It’s a management problem. Too many companies treat innovation like an art project instead of a disciplined business function that delivers measurable results.

From Art to Science

Magnus hit me with a line I can’t shake: “Innovation efforts cannot only rely of evidence-based decision-making. Leaders must also learn to master assumption-driven decision-making in a structured manner.”

This is where innovation management systems come in. Think ISO 9001 for quality, but for innovation. That’s ISO 56001. A framework that takes innovation from one-off lightning strikes to something systematic, measurable, and repeatable.

Lessons from AI

Naturally, our conversation turned to AI. Magnus compared today’s AI frenzy to the early days of internet hype. AI is just a set of tools. The real play is figuring out how to create value from it. And without the foundations of proper innovation management, most AI projects will go the way of so many innovation labs—lots of hype, little lasting impact.

So, What Is Innovation Management Anyway?

If you’re picturing Six Sigma for quality or ISO for cybersecurity, you’re on the right track. Until recently, there was no universal playbook for innovation. Now there is. At its core, innovation management is about leading and organizing innovation efforts so they consistently deliver results.

What does that look like in action?

  • Capture ideas before they vanish: No more good ideas lost in inboxes or hallway conversations.
  • Run the pipeline: From opportunity to prototype to implementation, every step has a process.
  • Invest smartly: Systems keep you from throwing money at shiny objects  that go nowhere.
  • Measure ROI: Even failed experiments create learnings, and leaders want proof of value.
  • Break down silos: Real innovation doesn’t happen in a vacuum; it happens across functions and organizations.

The Communication Gap

Here’s the kicker. Magnus pointed out that many innovation leaders can’t clearly articulate the value of innovation management to CEOs and boards. If you can’t make the business case, your tenure will be short. And that’s exactly what we’re seeing.

Moving Forward

The road ahead isn’t about waiting for the next “aha” moment. It’s about building management systems that create the conditions for innovation to thrive. ISO 56001 gives us the common language and framework to do it.

Companies that make this shift—from ad-hoc experiments to disciplined, systematic innovation management—will be the ones that thrive in the AI-driven, disruption-heavy years to come.