Digital is a much-overused word today. For many, it is not clear what it means and this leads to confusion about what should we do to take advantage of or defend against digital.
At BearingPoint, we look at digital as a driver for reviewing and updating business models to take advantage of the ongoing growth in technology and the changing behaviour of consumers towards online consumption. There are many stories about organisations that either did not recognise the potential of new technology or did not react to the potential of improved service experience for customers. These include Kodak, Blockbuster, Compaq, Atari, and many other leaders in the past. For these organisations, a new competitor came along with a sound value proposition that appealed to customers and they could not react to address this disruption. The competitors created their offerings through effective use of innovation.
You can’t stop innovation. Either you do it, or it gets done to you! A disruptive value proposition is unbeatable. The reality is you simply can’t outrun innovation or avoid developing innovation as a core competency.
So, if innovation is a priority need, why aren’t more organisations building it into their DNA? Why do many adopt a strategy that focuses on current strengths without challenging their business model before a competitor does. Doesn’t it make sense to embrace innovation since it’s key to identifying – and executing upon - the next big opportunity? Check out the impressive growth rates of the top 100 innovator list that was compiled by Forbes.
Clearly there are blockers that halt innovation. ‘Our organisation is not creative - we’re no good at coming up with disruptive ideas. Our sector can’t be disrupted - we already know what customers want. Innovation requires huge capital investment and a dedicated team to research and validate opportunities. Our firm simply wouldn’t know where to start – it’s complex, there are no processes.’
The good news is there is a process for innovation and all organisations can introduce this with limited support. Reality is a fair share of organisations simply don’t know where to start.
So, where do we start? With a handful of simple processes anyone can master in record time. In fact, we’re talking about one month. Innovation is relatively simple once you get your hands dirty: master those and you’re off on a hack. You’ll move from taking one big, carefully calculated, resource intensive, bet per year (at best) to dozens tested quickly in the hands of real users. Say goodbye to committing huge resources to validate your next big opportunity.
Testing new business ideas is something strategic, but organisations struggle to find time and space to test what could become their next generation of products and services. The go-to is to stay in the comfort zone of what we know – investing time and effort in short-term goals. Operating models are not designed to explore unmet customers’ needs, in particular if the idea is radical or disruptive.
This can all change super easily. The processes and technologies to be able to explore and design your future are here. All it takes is a different mindset and taking a few tips onboard:
| Make a habit of listening to your customers’ problems | Make a commitment right now to sit with five key customers each week and listen to their problems for 15-20 minutes each. Transcribe the detail of what they say. Who can’t afford 100 minutes per week? Then plot a matrix of the trends you’re hearing. Master a few Customer Discovery techniques and you’ll never look back. Nothing stopping you so far, right? |
| Park your bias at the door | How many times have you heard ‘we know what our customers want’? Of course (you think) you do! But it’s too easy to fall foul of confirmation bias. Hearing what you want to hear (let’s face it you’re in sales mode) is the enemy of innovation. Hearing what you didn’t already know is a key ingredient of innovation. Think unknown-unknowns! |
| Run at least one Design Sprint every month |
These are techniques anyone can master. Worst case scenario - get a little coaching. There is no excuse for not running internal sprints. Reality is you simply can’t afford not to. |
| Identify opportunities in batches of 10 |
Don’t spend months trying to refine the ‘next big idea’ before taking the plunge. 9 out of 10 new ideas should never get out of the starting block. In fact, the trick is to be ruthless. Steve Jobs had a motto about saying no to things a lot. Is your one big bet one of the 9? Validate in hours not months. That’s key. |
| Build a quick working prototype |
Prototypes are not difficult to put together. A paper scribble should be your first prototype. The trick is getting in front of users quickly. Show your prototype to those who described their problems during Customer Discovery. Ask them what they would change. Change it overnight and get it back to them the very next morning. The key is to continue listening and adapting based on feedback. This not only helps you to design a new product or service but is also a great way to deepen your relationships with your customers. |
| Test and learn fast |
Track what’s happening on your prototype. Don’t stay wedded to your original version. It will change. Multiple times. If it doesn’t, you’re doing something wrong. Don’t be the blocker. Test, test and test and capture all the feedback to make your offering better. |
| Pivot or persevere |
Remember, 9 out of 10 ideas fail. Don’t persevere when the evidence indicates a lack of success. Maybe there’s another angle which you can pivot to. It’s not a mistake to fail as you’ll learn so much that your next effort will be better. Be open to pivoting or killing your proposition. Your customers will tell you when you get it right and when this happens, be prepared to execute fast. |
BearingPoint has created an Innovation Kick-Start programme that can get your innovation process up and running in just 4 weeks.
We are happy to run a free half-day session with your team so that you can learn and experience what’s involved in the programme and test to ensure it will work in your organisation.
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in four units: Consulting, Solutions, Business Services, and Ventures. Consulting covers the advisory business; Solutions provides the tools for successful digital transformation, advanced analytics and regulatory requirements; Business Services provides managed services beyond SaaS; Ventures drives the financing and development of start-ups. BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 75 countries, engaging with them to achieve measurable and sustainable success.
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in four units: Consulting, Solutions, Business Services, and Ventures. Consulting covers the advisory business; Solutions provides the tools for successful digital transformation, advanced analytics and regulatory requirements; Business Services provides managed services beyond SaaS; Ventures drives the financing and development of start-ups. BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 75 countries, engaging with them to achieve measurable and sustainable success.
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