{"id":28533,"date":"2019-11-26T14:16:31","date_gmt":"2019-11-26T14:16:31","guid":{"rendered":"https:\/\/digileaders.com\/?p=28533"},"modified":"2019-11-26T14:16:31","modified_gmt":"2019-11-26T14:16:31","slug":"from-innovation-to-business-transformation","status":"publish","type":"post","link":"https:\/\/digileaders.com\/from-innovation-to-business-transformation\/","title":{"rendered":"From innovation to business transformation"},"content":{"rendered":"<p class=\"s5\"><span class=\"s4\">According to the Oxford English dictionary the definition of innovation is <\/span><span class=\"s4\">\u201cthe introduction of new things, ideas or ways of doing something<\/span><span class=\"s4\">.\u201d It\u2019s probably the biggest business buzzword of the twenty first century. Why then, does the term have such negative connation? And, crucially, why is so hard to get right?<\/span><\/p>\n<p class=\"s5\"><span class=\"s4\">The<\/span><span class=\"s4\"> word \u2018innovation\u2019 has been pitted as the solution to every business ill \u2013 keep thinking ahead and you\u2019ll see off competition from <\/span><span class=\"s4\">other companies in <\/span><span class=\"s4\">your industry and any startups trying to get a slice of your sector\u2019s pie. Businesses have invested billions into innovation programmes, with varying success. <\/span><span class=\"s4\">In fact, a<\/span><span class=\"s4\">ccording to a survey from <\/span><a href=\"https:\/\/www.ieseinsight.com\/fichaMaterial.aspx?pk=149398&amp;idi=2&amp;origen=1&amp;ar=16&amp;buscador=1&amp;general=agility\"><span class=\"s6\">IESE\u2019s Entrepreneurship and Innovation Center<\/span><\/a><span class=\"s4\">, just 23% of companies said their <\/span><span class=\"s4\">innovation <\/span><span class=\"s4\">units have delivered a significant innovation.<\/span> <span class=\"s4\">No wonder so many people are getting sick of hearing about something that just isn\u2019t delivering results.<\/span><\/p>\n<p class=\"s9\"><span class=\"s4\">The cycle cannot go on. <\/span><span class=\"s7\">Businesses are being impacted by a multitude of market forces,<\/span><span class=\"s7\"> s<\/span><span class=\"s7\">uch as rising costs, increased competition and new business models. The average age of an S&amp;P 500 company is under 20 years, down from 70 years in the 1950s, according to <\/span><a href=\"https:\/\/www.cnbc.com\/2017\/08\/24\/technology-killing-off-corporations-average-lifespan-of-company-under-20-years.html\"><span class=\"s8\">Credit Suisse<\/span><\/a><span class=\"s7\">. In a recent <\/span><a href=\"https:\/\/tobyelwin.com\/fortune-500-turnover\/\"><span class=\"s8\">Fortune 500 review<\/span><\/a><span class=\"s7\">, almost 50%<\/span><span class=\"s7\"> of companies<\/span><span class=\"s7\"> a decade later were gone<\/span><span class=\"s7\">. <\/span><span class=\"s7\">It\u2019s the classic <\/span><span class=\"s7\">\u2018innovator\u2019s dilemma\u2019<\/span><span class=\"s7\"> as described by <\/span><span class=\"s7\">Clayton Christense<\/span><span class=\"s7\">n:<\/span><span class=\"s7\">\u201c<\/span><span class=\"s7\">c<\/span><span class=\"s7\">ompanies rarely die from moving too fast, and they frequently die from moving too slowly.\u201d<\/span><\/p>\n<p class=\"s9\"><span class=\"s7\">If sitting back isn\u2019t an option, but current investments aren\u2019t working, what is the solution? \u00a0The best place to start is by looking at what hasn\u2019t worked, so we can rethink the approach. First thing\u2019s first, we need to think about what \u2018innovation\u2019 actually means. To date, it has <\/span><span class=\"s7\">been seen as <\/span><span class=\"s7\">either <\/span><span class=\"s7\">a <\/span><span class=\"s7\">bit of theatre, running hackathons, sponsoring accelerator programmes or <\/span><span class=\"s7\">technical activity<\/span><span class=\"s7\">, typically the digiti<\/span><span class=\"s7\">s<\/span><span class=\"s7\">ation of <\/span><span class=\"s7\">parts of the <\/span><span class=\"s7\">existing business<\/span><span class=\"s7\">. <\/span><span class=\"s7\">It\u2019s perhaps no surprise that<\/span><span class=\"s7\"> \u2018AI\u2019 and \u2018machine learning\u2019 <\/span><span class=\"s7\">are<\/span><span class=\"s7\"> viewed to be so exciting; if we can automate swaths of the company then we can save costs and boost profits.<\/span><\/p>\n<p class=\"s9\"><span class=\"s7\">However, it\u2019s<\/span><span class=\"s7\"> much more than that. To succeed you need to look beyond<\/span><span class=\"s7\"> theatre and<\/span> <span class=\"s7\">digiti<\/span><span class=\"s7\">s<\/span><span class=\"s7\">ation<\/span> <span class=\"s7\">to<\/span> <span class=\"s7\">a <\/span><span class=\"s7\">driving a sustainable and scalable <\/span><span class=\"s7\">transformation<\/span><span class=\"s7\"> programme that evolves your business model and value proposition<\/span><span class=\"s7\"> to meet your future customer <\/span><span class=\"s7\">needs,<\/span><span class=\"s7\"> so you can <\/span><span class=\"s7\">maintain and grow shareholder value.<\/span><\/p>\n<p class=\"s9\"><span class=\"s7\">The issue with typical<\/span><span class=\"s7\"> \u2018<\/span><span class=\"s7\">innovation<\/span><span class=\"s7\">\u2019 programmes are<\/span><span class=\"s7\"> they<\/span><span class=\"s7\"> ran in silo, <\/span><span class=\"s7\">devoid of buy in from the business and addressing challenges that solve for today\u2019s issues not <\/span><span class=\"s7\">tomorrows<\/span><span class=\"s7\">.<\/span><span class=\"s7\"> Therefore,<\/span> <span class=\"s7\">it<\/span><span class=\"s7\"> becomes a project, which is more of a tick-box exercise run on a budget that isn\u2019t enough to adequately test, build and measure initiatives. <\/span><\/p>\n<p><span class=\"s7\">And, m<\/span><span class=\"s7\">easurement is key. Without a doubt the b<\/span><span class=\"s7\">iggest challenge with enabling business transformation is balancing<\/span><span class=\"s7\"> the programme with<\/span><span class=\"s7\"> business-as-usual<\/span><span class=\"s7\">, as this is <\/span><span class=\"s7\">measured on KPIS <\/span><span class=\"s7\">and <\/span><span class=\"s7\">short-term<\/span><span class=\"s7\"> financial targets<\/span><span class=\"s7\">.<\/span><span class=\"s7\">A<\/span><span class=\"s7\">n MD of business unit is not incentivized to spend budget on a team where he cannot see the outputs. <\/span><\/p>\n<p><span class=\"s7\">Squaring this requires a fundamental shift in the way organizations are designed. <\/span><span class=\"s7\">Business transformation will only succeed if it led by the top and supported with a budget that isn\u2019t short-termist. The culture needs to support the drive to change and adapt to customer needs. If you focus on what other players are doing and react to them then you\u2019ll always be on the back foot. <\/span><\/p>\n<p><span class=\"s7\">New models succeed when customers embrace them, so customers must always be the starting point \u2013 what do they want, how you can do it differently and actually lead? It\u2019s not enough to say your company is innovative \u2013 you need to be actively transforming to what customers want.<\/span><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span class=\"btn-container\"><a class=\"btn btn-md btn-primary\" href=\"#\">More thought leadership <i class=\"far fa-caret-right\"><\/i><wbr \/><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the Oxford English dictionary the definition of innovation is \u201cthe introduction of new things, ideas or ways of doing something.\u201d It\u2019s probably the biggest business buzzword of the twenty first century. Why then, does the term have such negative connation? And, crucially, why [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":28536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"class_list":["post-28533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","topic-innovation","topic-transformation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>From innovation to business transformation | Digital Leaders<\/title>\n<meta name=\"description\" content=\"The definition of innovation is \u201cthe introduction of new things, ideas or ways of doing something.\u201d It\u2019s the biggest business buzzword of the 21st century\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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