{"id":9615,"date":"2021-05-14T10:00:28","date_gmt":"2021-05-14T10:00:28","guid":{"rendered":"https:\/\/ww2.frost.com\/events\/product-innovation-development\/?p=9615"},"modified":"2022-01-13T17:40:30","modified_gmt":"2022-01-13T17:40:30","slug":"10-steps-of-transforming-innovation","status":"publish","type":"post","link":"https:\/\/www.frost.com\/events\/innovation\/10-steps-of-transforming-innovation\/","title":{"rendered":"10 Steps of Transforming Innovation and More Insights from <\/span>The Future of Innovation: A Frost & Sullivan VIRTUAL Executive MindXchange"},"content":{"rendered":"

\"PatriciaBy Patricia Jacoby
\nSenior Editor, Marketing<\/em>
\nFrost & Sullivan<\/p>\n


<\/p>\n

Our latest virtual event, The Future of Innovation: A Frost & Sullivan VIRTUAL Executive MindXchange, <\/strong>was inspired by the #1 business challenge cited by Growth Innovation Leadership Council<\/a> members: Business Model Strategy<\/em>. In a period of technological transformation and change accentuated by the pandemic, creating or re-defining business models has become a crucial focus for many enterprises.<\/p>\n

Discussions designed to help innovation leaders write their own playbook for change were the order of the day, starting with headliner John Olson, Vice President, Strategy and Business Transformation with Johnson Controls.\u00a0 Olson answered the question What Kind of Business Are We In, Really? The Drive to Reinvent Traditional Business Models<\/em><\/strong> by sharing 10 steps of transforming innovation:<\/p>\n

    \n

    1. New is Different<\/strong> Start with framing what\u2019s new. Is it a whole new business? Is there an adjacent business or opportunity you can explore? New customers or new customer segments? Start with what\u2019s different.<\/p>\n

    2. Plug in<\/strong> It\u2019s critical to determine who owns the innovation initiative. Don\u2019t make innovation a separate process; integrate it into everyday activities across the organization and build momentum. Assess who will listen to the Voice of the Customer. Energy and buy-in from the top are always necessary.<\/p>\n

    3. Start with your AVCs: Awareness<\/strong> – What\u2019s different? Why does it matter? What metrics will you measure? Visibility<\/strong> – Use sources of measurement to understand and communicate. Good insights will tell you things. Capability<\/strong> – What specifically will be happening? What organizational muscles should be flexed? Can they be tied back to larger goals? Sustainability<\/strong> – Ongoing steps and an infrastructure that supports innovation to keep it moving forward post-launch must be in place. This cycle may seem obvious, but these fundamental steps are very helpful in enabling change.<\/em><\/p>\n

    4. \u201cRight-to-Left\u201d<\/strong> Remember, \u201cinnovation \u201cisn\u2019t always neat,\u201d or organized. Look at your customers first\u2026great ideas can come from solving their problems. Did you ever think you\u2019d be ordering a car from your phone?<\/p>\n

    5. Customers <\/strong>Speaking of customers, check with them early, often and jointly. Understand their challenges. The more customers you talk to, the more you\u2019ll see patterns and trends. There is no such thing as talking to your customers too much. They can show you where the next opportunity is. \u00a0<\/strong><\/p>\n

    6. Segment <\/strong>Focus on your vertical, the value your product or service will bring to customers, and the customer need you are solving for.<\/p>\n

    7. Value Sources <\/strong>Ask: how is value created? Strive for efficiency and risk reduction. Consumers will overpay to manage risk. Look for those customers who want to be bigger, brighter shinier\u2026they are often the early adopters.<\/p>\n

    8. Models Matter<\/strong> Understand the economic model. And again, create value and translate into basic economics.<\/p>\n

    9. Learn from Start-Ups<\/strong> Don\u2019t copy. Move quickly. Grab and broadcast your narrative. Use speed and leverage customer insights. Make decisions faster. Leverage the organization to move faster.<\/p>\n

    10. Use Strengths<\/strong>. If you are a mature company, start-up rules won\u2019t apply. It\u2019s more important to get the right people in the room. Decide: Who will set the rules? What strengths will the enterprise bring to the initiative? For example, Johnson Controls has a global presence they can leverage.<\/p>\n<\/ol>\n

    The above is not meant to be an exhaustive list, but can be used as a roadmap to facilitate innovation.<\/p>\n

    Other event highlights included an interactive session, Shifting the Innovation Portfolio,<\/em><\/strong> led by Richard Sear, Partner and Senior Vice President & Chief Solutions Architect at Frost & Sullivan. Sear shared key steps around IBM\u2019s First of a Kind \u201cFOAK\u201d innovation program, developed to accelerate the transition from prototype to product by funding testing of early stage technologies in outside companies. When Sear asked the group how much of their budget they typically allocate to incubation, he received answers ranging from 10% to no more than 15% on up to one-third of budget. A common obstacle cited was determining what to focus on amid the many possibilities and paths to innovation. Aligning initiatives to the rest of the portfolio and setting innovation \u201cguardrails\u201d were also frequently mentioned. Another key issue discussed was aligning innovation with overall business strategy early enough in the process.<\/p>\n

    Perhaps an even larger issue the group pondered was circumventing the gap between innovation leaders and their goals and the near term, often aggressive goals of business units. Managing the shifting financial metrics related to innovation is\u00a0 often a deal-breaker, as seismic innovation can indeed \u201cshake up the earth\u201d and financial foundations of the enterprise. In an effort to address this, Paul Campbell, President, Btomorrow Innovation, recommended that the group read Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things,<\/em> co-authored by Clayton M. Christensen, Stephen P. Kaufman,<\/a> and \u00a0Willy C. Shih<\/a> for the Harvard Business Review.<\/p>\n

    April Bertram, an industry thought leader in IoT, and Senior Business Director at GOJO Industries, presented a SUCCESS STORY \u2013 Redefining Leading Indicators and Success Measures<\/em><\/strong> at the event. Bertram shared models for business innovation, technology adoption, customer creation, discovery and validation and key lessons learned from her company\u2019s recent new business model launch for their Smart Restroom Technology Solution, including:<\/p>\n