Global disruption and uncertainty have forced innovation leaders to take their commitment to an entirely new level. They not only found new ways to innovate but, also improved their ability to sustain innovation over time.
It’s one thing to have the word ‘innovation’ drafted into an organization’s mission statements and annual reports.
But to have a rigorous process for delivering sustainable innovation-driven growth requires a bird’s eye view of the latest tech trends, industry best practices, and sharp analytical skills.
Recruiting the best AI specialists and data scientists to build and deploy machine-learning models is not enough if the managing teams are not embracing or understanding the newly available data.
To bring about extensive business innovation, technologists and data scientists cannot work alone- they must be paired with creative business executives – including sales, marketing, supply chain, finance, and HR– who know where improvements in efficiency and performance are necessary.
An interesting example to analyze would be Novartis. As mentioned by the Harvard Business Review, the Swiss pharmaceutical was able to tackle the COVID crisis efficiently when its business team partnered with data scientists to devise models to manage supply-chain disruptions, predict shortages of critical supplies, and enable quick changes to product mix and pricing policies.
According to the market research firm IDC’s Worldwide IT Industry 2020 Predictions report, enterprises across the global economy will need to create some 500 million new digital solutions by 2023—more than the total number created over the past 40 years.
It would be delusional to think that this feat can be accomplished by small groups of technologists and data scientists walled off in organizational silos.
It will require much larger and more diverse groups of employees—executives, managers, and frontline workers—to come together to rethink how every aspect of the business should operate.
“Years ago, we were just as siloed as most companies, with each product-based organization segregating its own data, software, and capabilities. As we connected and normalized data from different functions and product groups, we were able to deploy integrated solutions in areas ranging from customer service to supply-chain management…. We also invested in training programs for nontechnical employees, cultivating data-centric and machine-learning capabilities throughout the organization.”
Satya Nadella, the chairman and CEO of Microsoft
Around 4000 products are sold on Amazon every minute. Of these products, approximately 50% are presented to customers by its personalized recommendation engine. Facebook and Google’s algorithms take careful note of user intent before pitching the Ads.
Netflix, Uber, Shopify, Airbnb… the list of companies leveraging emerging technologies for personalized customer experience, optimized ads, improved products, and services is increasing day by day.
One of the main ways that emerging technologies are shaping businesses is by giving them new ways to collect and use data.
With the digital age in full swing, many businesses have changed the way they create and capture value. However, some companies get caught up in “doing”digital transformation instead of focusing on how to make money with it. As a result, these firms are leaving substantial value behind.
Companies can derive digital value from three aspects: value from customers, operations, and ecosystems. Value from customers can encompass anything related to customer service or sales such as cross-selling, increased loyalty, and great customer experience).
Value from operations may refer to automating processes or making components more modular for efficiency’s sake.
To get value from ecosystems, companies need only look outside themselves by leveraging partners who have access to a larger range of products or services. Companies that leverage digital transformation will truly be ‘future-ready’
Our digital economy has forced businesses to shift their competitive strategies, marketing techniques, and business models. It’s an economy of limitless opportunities for some while others struggle with displacement and disruption.
Businesses need to be agile in their approach and learn to outsource and automate their processes. This frees up a lot of time and organizations can focus on their ‘core business.
The digital economy has not only changed the way organizations do business but has also increased customer expectations. Customers are now looking for seamless interactions and quick results.
According to Harvard Business Review, two out of three transformation initiatives fail in most organizations. The more things change, the more they stay the same.
Oftentimes, change is difficult to manage because individuals can’t seem to agree on what elements have the most impact on transformation initiatives.
If you ask five different executives about it, you’re likely to get five distinct responses. That’s because an individual assesses an initiative from their own perspective and emphasizes various success factors based off of personal experience.
For a successful transformation initiative, companies must take into account factors such as the time needed for completion (strategy), the number of people required (employees), and expected financial results (management).
Incorporating strategic thinking and analysis, along with strong communication at all levels in organizational change management approaches can help you increase employee engagement, discretionary effort, intent to stay, and productivity.