Clients are telling us that the pace, scale and nature of how they innovate must change.
Today, companies must reimagine the very core of their business, which requires a more disruptive approach. What’s more, the high cost of technology and data-based acquisitions means that companies must do it organically or by collaborating across their ecosystems.
Getting that done requires a broad range of capabilities: strategists, customer researchers, product and development specialists, technologists, customer/user experience developers, data scientists and engineers, compliance, finance, legal, marketing, sales, customer service – the list goes on.
Convening and mobilizing these different disciplines and talent is a key challenge. EY teams have used wavespace for just this purpose, combining design thinking, leadership alignment and proven methodologies to keep teams on track and take great creative leaps forward. We are working with industries as diverse as telecommunications, healthcare and consumer products to co-create new products and services, establish strong governance, and maintain the team’s energy and momentum.
Three common barriers to scaling innovation
In my experience, three of the most common stumbling blocks to scaling disruptive innovation are:
- Originating: If innovation projects are defined too narrowly or fail to meet the company’s remit, people will struggle to see the connection and why they should make the effort. For innovation to work, you need energized people ready to tackle the status quo. Projects that fall outside the organization’s purpose dilute the focus. Ensure innovation projects are aligned to the company’s purpose and vision.
If innovation projects are defined too narrowly or fail to meet the company’s remit, people will struggle to see the connection and why they should make the effort.
- Funding: Disruptive innovation requires longer term investment cycles, often five to 10 years. This typically exceeds the term of office for leaders and board members, in addition to the economic cycles of downturns and disruptions. Step two is to establish a mindset that is focused on the long game, with sustained entrepreneurial leadership, proper metrics and transparent reporting.
- Integrating: Where do you house new innovations that are successful? This is slightly easier for projects, which can be “nested,” as one recent client described it, into the core business to create a sustainable future. Even then, these businesses are likely to be very different in nature and risk rejection by the core business. For more disruptive innovations that replace the core of the business, this is a more complex question, and it’s a matter of co-existing and transitioning, rather than nesting. Whichever form it takes, clear communication and change management is essential.
From reimagine to realize
One of the most positive things about recent times is how innovation is accelerating. At the start of the calendar year, it would have been hard to imagine how well virtual collaboration would work. I’m talking with business leaders who are saying, “We’ve done things that were hardly imaginable this time last year.” This is innovation in action.
Personally, the best part of my job has always been helping clients to reimagine their business. I’m excited that we’re doing this in new ways, helping companies to reimagine and realize a bold future.
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Summary
Despite the challenges of the pandemic, innovation continues to flourish. Though scaling innovation can be difficult, working across a range of disciplines with energized, motivated teams makes all the difference. To avoid common barriers to success, ensure innovation projects are aligned to company purpose, secure sustainable funding and integrate the new innovation into the right part of the business.
