Today, most corporate leaders see disruption as both an opportunity for “change” and an existential threat. Four essential principles described in this article can help to apply innovation at scale, rapidly develop and iterate a portfolio of new solutions while simultaneously preparing the organization for sustained evolution.
Essentials for Implementing Innovation
Engage people in collective innovation
Innovation requires a new way of working that fosters intrapreneurship spirit, encourages learning, incentivizes creativity and enables innovation to deliver.
- Use design thinking to convey messages quickly
- Understand the voice of the Customer
- Multiple answers can be correct - fail fast and cheap, learn and move on
- Establish multi-functional teams to support outside thinking
- Be curious and seek out for new solutions
Co-creation of ideas and innovation are only 5% of the challenge. 95% of innovation success is based in the ability to execute and bringing value to customers.
Understanding the spectrum of innovation is key to driving change
Breaking down boundaries to develop a new variated culture is key. New commercial opportunities will be created by understanding the landscape of market disruptors, exploring non-traditional company relationships and supporting funding for acquisitions.
Since technology development has exceeded our learning, businesses must be encouraged to think outside the box, by investing in a dedicated customer-focused innovation lab where new ideas are incubated and tested for their clients for example.
In parallel, companies are starting to recognize the tremendous potential of third party innovation to gain instant access to latest trends, products and technologies and to reduce the development and deployment timeline.
Create an integrated innovation ecosystem with a flexible Incubator as the driving force
As restructuring organizations around innovation is not going to happen overnight, wider collaboration becomes critical. By partnering with nimble entrepreneurs, businesses adapt the startup approach to a faster and cheaper innovation and engage creative minds to explore implications and opportunities from an outside-in, future-back perspective.
Through incubation and innovation approaches, business will be able to envision new futures, shift business practices and use technology and data to validate innovative ideas, to “manage risk” on investments and to define operating models and evaluate partnering options.
Adapt your organization to your Innovation Strategy
As companies rely on multiple organizational models to drive innovation, it’s key to create a dedicated operating model and structure to integrate innovation with the business strategy as a whole, to engage long-term decisions and innovation functions to take responsibility for ideation and prototyping.
Today’s investors expect CEOs to innovate by driving long-term success and avoiding disruption by unexpected competitors. Today’s leaders must create businesses and culture capable of driving the daily optimal performance and innovation for the future and to get an explicit interaction with innovation teams, whilst participating in the innovation process.
Kevin D’Antonio, Senior Manager, Innovation Strategy, Advisory services, EY Luxembourg
Mattia Lattanzio, Senior Consultant, Advisory Services, EY Luxembourg