Do You Have a System for Digital Innovation

webnexttech | Do You Have a System for Digital Innovation

Industry-leading business leaders desire to consistently deliver best-in-class business results, be it generating revenue growth, increasing profitability or creating differentiation from the competition.Product innovation, process innovation and business model innovation are persistently required to achieve these results.Do you realize these leaders regularly create focus and strategy, practice, encourage experimentation, and occasionally fail to produce breakthroughs?
Do you know it can take years of having a system of digital innovation to build for these breakthroughs?
Let’s explore if you have a long-term system for digital innovation or if hope is your actual plan.Questions That “Take a Look Under The Hood” to Assess Where You areThe following questions can help you genuinely take stock of whether you approach innovation in your business systematically or based on hope or luck.
You can pose these questions to your organization or as a core element to a strategic conversation on innovation within your business, or do both: Do we have a reward system for bringing new ideas with plans to the table?
Do we have a calculated and measured approach that is easily repeatable for pursuing and assessing new ideas in the business?
Do we predominately choose concepts we understand well and have high confidence in their success?
Do we have a single approach to delivering projects throughout the business?
Do our speculative ideas utilize an agile and minimally viable product methodology, looking for early customer feedback and engagement?
Do we have documented processes, funded staff and dedicated leadership focused on innovation covering different timeframes?
Do we make our innovation investments based on a portfolio management ideology?
Do we constantly maintain metric scorecards on digital innovation and growth that measures output, such as customer adoption metrics of new business models or the percentage of revenue from features and products launched within the past 18-24 months?
Do we have innovation readout metrics assessing the number of ideas proceeding through experimentation across the different timeframes?
Do senior leadership and the board have a framework dedicated to digital innovation assessed with critical metrics?
Answering these questions thoroughly and honestly will enable you to conclude if you have a system for digital innovation.The Baseline Components of a Digital Innovation SystemMany paths and answers can provide the direction forward to define the end goals of creating digital innovation systematically within your business.
However, three aspects should be a core basis for your digital innovation system.
Your business must customize this system to its current state, accounting for where you stand today, your team’s skills, the culture, and what you aspire to achieve.1.
Incubate Concepts, also Known as BetsBets are concepts that may have a meaningfully positive effect on the business, such as entering new markets, attracting new customers, growing revenue or creating new ways to deliver value to your customers.
Bets are speculative ideas and are difficult to prove as you develop them.
As you develop a bet, you analyze the characteristics of the concept that must hold to have the desired impact and what aspects of these characteristics can cause failure.
You may speculate that a new feature or product will delight your customer or attract new customers.
Still, it is difficult to measure it through your traditional metric analysis in the early stages.These ideas need to be characterized and analyzed because they are a critical input into your digital innovation system.
These concepts form the basis of what you move forward to the next stage.2.
Iterate on your Bets with SpeedRegardless of what form your minimal viable product technique takes or what your agile development methodology entails, it is critical to move with speed.
How you experiment, validate, analyze and formulate the next concept form must be done quickly.
The speed at which you iterate profoundly impacts the results and the timeliness of decisions.
Moving speed is critical in measuring potential impact, deciding on a course correction, and determining what moves forward to future stages.Minimize and reinvent what you have to increase speed.
Your iteration strategy should develop processes and gates to create speed to minimize the impact on experimentation and learning.
Many businesses have slow iterations and concept development down due to several reasons.
These reasons may include what team produced them, the standardized processes, how you prioritize the use of resources within and across groups, and how critical planning for the future versus what’s important this quarter truly is.3.
Manage Digital Innovation as a PortfolioYou can take the wealth management or venture capital approach toward making bets on developing and investing in ideas.
The key is to make these bets small-sized and fast to manage the more extensive portfolio of ideas and make critical decisions on these bets at a suitable or reasonable time.
You can assess the betting portfolio based on the aspects of your corporate strategy that align with the correct timeframes, problem categories, risk/reward, customer adoption, revenue growth and so on.ConclusionBusiness and technology leaders face a large amount of uncertainty regarding digital innovation.
Are different ways of assessing and delivering new business models and products core to your business’ DNA?
Do you focus on long-term value or what’s essential for this quarter?
Do you only focus on what’s clear, safe, and sound to minimize potential failure, thereby creating incremental value?
These questions are critical to answer as you strategize how you respond to the digital world.
An experienced advisor can guide you through making the right digital innovation system strategy and set you on the path to success.

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