DIGITAL TRANSFORMATION @ SPEED
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How Do You Innovate and Securely Run the Business at a Time of Disruption?
Maintain "Work as Usual" by continuing with a disruption strategy for your core business. Simultaneously, use an Innovation Lab to deliberately innovate in a risk-tolerant environment, exploring new ideas and technologies without jeopardizing primary operations.
Work as Usual
Continue With Disruption Strategy for
Core Business
Innovation Lab
Deliberately Innovate in a Risk-Tolerant
Environment
Retail.Co*
Retail Context — Cause of Innovation Lab
- 1Unprepared for disruption from digital competitors.
- 2Challenged to develop digital competencies, need to learn through collaboration to stay ahead in the times of disruptions.
Key Issues
Innovation
Lab
Innovation Lab Building Blocks
- 1Building Blocks of Operating Model
- 2Supportive Goals
- 3Core Goals
Core Goals of an Innovation Lab
- 1Business Optimization
- 2Business Transformation
- 3Beyond Profit
Innovation
Lab
Business Optimization
- Improved Productivity
- Improved Existing Revenue
- Improve Operating Margin
- Enhance Customer Experience
Business Transformation
- New Business Models
- Digitize Product or Service
- Run a Platform Business
- Move Into New/Adjacent Industry
Beyond Profit
- ESG/Sustainability
- Societal Goals
- Mitigate Strategic Risk
- Learning and Development
Beyond Profit Goals
“We had a very clear pervasive objective which was beyond profit, it was not revenue objectives; we had focused on learning and knowledge and building connections on understanding capability.”
Innovation Lab
Innovation
Lab
Supportive Goals of the Innovation Lab
- 1Competitive Advantage
- 2Knowledge Sharing
- 3Build Innovative Culture
- 4Communication
- 5Technology Adoption
Competitive Advantage
Supports in technology adoption and enablesstability in disruptive times
Knowledge Sharing
Members educate about the newfound knowledge across the organization
Build Innovative Culture
Built with communication, events, failure appreciation and HR policies
Communication
Telling the right stories and finding innovation ideas
Technology Adoption
Emerging technologies are spotted, and right use cases are perused
Key Issues
Building Blocks of the Innovation Lab Operating Model
The Innovation Lab Operating Model is built on key components such as Financials and Performance metrics, clear Decision Rights, and a well-defined Talent Organization Structure. It also includes strategic Sourcing & Alliances, innovative Ways of Working, and state-of-the-art Tools and Places to foster creativity and collaboration.
Innovation Lab
Financials
Base budget and venture fund in parts
Performance
Combination of leading indicators and lagging indicators
Decision Rights
Different styles of governance
Talent
Design Thinking, Business Acumen, Technical Expertise
Org Structure
Multidisciplinary Team
Sourcing and Alliances
Clear Value Proposition for All Partners
Ways of Working
Minimum Viability Through Agility and Design Thinking
Tools
Minimum Requirements for Rapid Development and Testing
Places
Balance Physical and Virtual Based on Goals
Engage
- “Proportion of the IT spend and from the business, an x% of the fund, was put aside each for innovation. Then we created a put aside each for innovation, which then requires supporting the startup model as a venture fund.”
Retail.Co*
Retail.Co*
Enable
We Created a Team With Multiple Talent:
- 1Customer Advocate Role
- 2Digital Methods Person
- 3Digital Technologist
Deliver
- “Design thinking, customer journey mapping, agile and scrum type delivery methodologies are the ways of working of the innovation lab which are fundamental and common across all of these innovative organizations.”
Retail.Co*
Key Issues
Deliver
The challenges we faced during our journey of the innovation lab were:
- 1Felt challenged while engaging back with the core business.
- 2One of our key partner’s core business goals was not aligned with our vision causing slow outcomes.
- 3We were thinking of investing in quick solutions, not innovation lab, because the industry was evolving too quickly.
Common Innovation Lab Challenges and Solutions
One common challenge is transitioning prototypes from the lab to the business, which can be addressed by working closely with the business early to ensure seamless integration. Partnerships may also become misaligned with the lab’s objectives; this can be mitigated by establishing a clear value proposition and involving a relationship manager to maintain alignment. Additionally, low innovation investment during disruptions can stall progress, so it's crucial to deliberately innovate through the innovation lab to sustain momentum and drive growth even in challenging times.
How We help you!
- 1Continue investing in innovation in a time of disruption in the risk- tolerant environment for a quick turnaround by investing in an innovation lab.
- 2Set a crystal-clear vision for the innovation lab by defining detailed, quantified, time-bound goals that lead to desired business outcomes.
- 3Design an impactful innovation lab by creating a structured innovation operating model to guide decision-making activities for innovation investments.
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