BUSINESS MODEL AND STRATEGY INNOVATION
An organisation’s strategic direction and business model are today unparalleled in their importance when trying to defend and increase diminishing margins, commercialise new strategic initiatives or revitalise management teams. Used correctly, they can give new insights into potential future change and transformation using disruptive technologies.
For a thorough analysis, everything starts with a “why” question. When working on an assignment, we ask why you exist as a company. What’s your strategic intent? Why do you still exist and why should anyone demand your services and products? By defining and exploring your strategic intent and your business capabilities as well as your financial and operational performance, it is possible to conduct a stress test of your current business model with questions like:
- Where do you create superior value? If you do not create superior value, why not?
- What are your customer’s pain and gain points and what is the real need they are trying to satisfy?
- Is it possible to either eliminate or reduce market logic and demands?
- Is it possible to introduce or raise new market logic and demands?
- What channels do you use and how do you use them?
- What are your valuable assets, such as key resources, key activities and key partners?
- Is it possible to imitate your valuable assets? What is unique about your offerings?
- What is your pricing model? How do you maximise customer lifetime value?
A strategy should be built upon a strategic intent, core values, a vision of where the business is heading, and a clear mission focusing on what’s important and clear objectives to strive for. The strategy is the framework for the business model innovation, and when executed properly leads to the fulfilment of the objectives.
Typically, business models are stress tested, redefined and ultimately reinvented based on insights gained from an iterative process involving analysis and prototyping before they are launched and rolled out.
Many organisations need several business models, either because of new disruptive projects they are working on or simply due to the complexity of the organisation. The best approach is normally to lock on a certain market or a certain value proposition to move ahead fast and then to work through the rest of the organisation step by step.
Many times, there are also parallel business models within the same market or product/service segment, e.g. one to maximise the full value of old investments (red ocean) and one to explore new possibilities (Blue Ocean).
BUSINESS PROTOTYPING AND CO-CREATION
We facilitate the release of the creative forces in your organisation, by applying rapid business prototyping techniques to your business development. Innovation360 offer a unique intersectional take on Prototyping for Business by combining methodologies and tools from hardware product development, software design and business development and analysis, thereby creating unique insights for customers.
By using rapid methodologies, you can transform your organisation into a faster organism in synch with the increasing speed of the market and rapid changes in customers’ preferences.
Combining the latest findings from the top business and design schools with C-level industry experience and the knowledge and expertise of top performers in management consulting, we have developed new innovative tools that can help you improve your ideation, align your internal communication or succeed in your co-creation efforts with your customers.
Innovation has evolved from giving an organisation a competitive advantage to a requisite for survival in the modern competitive climate. A cornerstone for innovation is the generation, collection and selection of ideas. The pure quantity of the number of tested ideas has been shown to be the single most distinctive feature of innovative companies; read more here.
In this era of hypercompetition, customers have the choice of an unprecedented number of possible ways to fulfil their needs, leaving any endeavours to outperform all possible competition futile. Instead, inviting your customers into your innovation process can be a way to strengthen your customer loyalty and to go beyond just adding product features, and can enable you to provide the customer with exactly what they want at any given time. Prototyping is an excellent tool to use when co-creating with customers, and involves many different methods depending on the industry and stages in your development cycle.
Truly disruptive breakthroughs can happen when combining ideas from different disciplines, which is why assembling diverse teams of people to collaborate on innovation is a recommended approach. However, it is an approach often avoided by many organisations due to the cooperation challenges. Collaboration at these intersections calls for new tools for communication and visualisation to avoid locked positions and a “trench warfare” attitude developing. Through guided prototyping sessions, you will create a common comprehension of otherwise complex concepts. In complex organisations, management teams are required to master the art of collaboration, often including by adding haptic perception and rapid prototyping tools.
Through structured workshops and by working with physical models, illustrations and representations, Innovation360 will give your company tools to use to enhance the way you ideate, helping you to generate positive and lasting results. Through scouting and hunting, you can apply prototyping for your business in different contexts, such as when you interact with new customers (in which case a study in anthropology is useful).
Innovation360 Group has extensive experience in prototyping, including the creation of MVPs or Wizard of Oz, and offers both training in prototyping methods and in guidance in how to pick the most appropriate prototyping method for you current situation.
INNOVATION PROCESS & SYSTEM
The I360 innovation framework
You might ask, “Why innovate?”, but to answer this seemingly simple question, let us first examine the strategic nature of innovation. We know that innovation is a strategic necessity, because the primary purpose of innovation is to ensure that an organisation survives, and the evidence overwhelmingly shows that any organisation that doesn’t innovate, probably won’t stay in business. Hence, your innovation process should be aligned with your organisation’s strategy, and innovation should be a key factor that defines how your strategy will be realised.
You might also ask, “What to innovate?”, and we recognise that the unpredictable nature of change requires us to prepare for many types of innovation options for a wide range of possible futures.
You might then ask, “How to innovate?”, and we grasp that a rigorous innovation process is essential. Furthermore, this process must be driven by strategic intent, i.e. the “why” of innovation, so in fact, the innovation process itself begins with strategy. The second step is the “what” of innovation; this is a highly strategic question and does not just happen randomly. Many organisations believe that this is one of the first steps, but in reality it is in the middle of a strategic, well-implemented innovation process.
When we think about “Who innovates?”, we see that, in a robust innovation culture, while everyone participates, there are three distinct key roles to be played in achieving broad and consistent innovation results: the Innovation Director, the Innovation Ideator and the Innovation Champion. However, these roles must be in harmony with the personality (personas) of those participating in the innovation work.
The “Where does innovation occur?” question covers the tools and infrastructure that support the innovation process and the people involved in the innovation process. There are four elements to consider relating to innovation infrastructure, these are:
- The type of innovation, e.g. open innovation or engaging people internally and externally.
- Collaborative platforms to support agile and fast value creation.
- The physical work place, i.e. where people are engaged and motivated.
- Methods to support and encourage the innovation process.
The “When” question is about the innovation metrics and coaching for results. Everything needs to be measured to fully understand its impact; this is especially important for creative work such as innovation. It is imperative to really understand what is driving value and to measure the work effort and the end results, in order to optimise the outcome of the innovation work.
Our services to support the innovation system
We provide a range of services to support the innovation process and to help you assess and improve your innovation capabilities to improve your performance. These include:
- Understand the principles of innovation and how to apply them immediately to your organisation.
- How to create an innovation culture in your organisation.
- Learn where to focus your improvement efforts to see immediate results.
- How to create a unique environment for creativity, information sharing, knowledge development and ideation, piloting, development and for launching radical innovations.
- An innovation lab can be set up for a few days or for a longer period of time and can also be combined with prototyping activities.
Innovation leadership and culture
Culture, leadership, values and personality are some of the most important elements for innovation implementation or for improving innovation work. We offer:
- Coaching and training for leaders;
- Culture audits;
- Team development;
- Design of incitement programmes.
Defining the right key measurements to monitor and control innovation work is vital to be able to keep up the pace and to ensure you realise the maximum results from the available R&D budget. We work with defining and suggesting metrics for:
- Idea generation;
- Diffusion of innovation.
The use of collaborative platforms for internal and external collaboration is essential, and we have long and extensive experience in the leading collaboration and product life-cycle management platforms. In all our innovation assignments, we define, structure and implement solutions that are driven form the business perspective rather than from an IT point of view.
Process training and implementation
No process is, at least in the fine detail, exactly like another process and so it is important to carefully design innovation processes to oil the machinery and not for them to become an obstacle. The innovation process should be the result of all concurrent innovation efforts. No process is, at least in the fine detail, exactly like another process and so it is important to carefully design innovation processes to oil the machinery and not for them to become an obstacle. The innovation process should be the result of all concurrent innovation efforts. Read more here.
Typically a governance system include an Innovation Board, Innovation Task Force and an Innovation Sponsor.
- Linking strategy to strategic initiatives in first, second and third horizon.
- Allocating and prioritizing resources for ideation. Coaching on ideations, especially hypothesises and outcome of experiments.
- Go and no go on projects (= decision-making based on ideation selection)
- Mapping projects to H1-H3, defining return, allocating resources.
Innovation Task Force
- A cross-organisation function with no full-time employees (creating buy-in in the organisation).
- Responsible for supporting ideation and technology watch, formulating, and testing hypotheses through prototyping, co-creation and A-/B-testing.
- Act as innovation coaches supporting innovation projects.
- All strategic initiatives should have a sponsor appointed.
- The sponsor acts as champion to procure/allocate/prioritise/defend resources according to authorisation from Innovation Board.
- Manages portfolio for their strategic initiatives.
- Typically, senior executive with a great deal of credibility internally and externally. One sponsor can be sponsor for several strategic initiatives.
Innovation should to lead to short-term returns through the optimisation of existing products, services and business models. However, it also plays a central role in securing an organisation’s long-term survival by enabling it to explore new territories, whether that be new geographies or new business opportunities. Many companies unintentionally harvest their core business through pushing short-term performance while losing out on long-term investments that could help them stay ahead of the game. Sustainable innovation management must therefore be targeted at identifying and developing future business in parallel to optimising current business. Successfully integrating different time horizons is an imperative in innovation management. The “three horizons”can serve as a convenient model to categorise and manage innovation initiatives across different time frames. The characteristics, here adapted to the Innovation360 Framework terminology, of the different innovation horizons are presented in Table 1. Read more here.
We offer a wide range of executive services, such as a board service with non-executive directors and chairpersons, training and coaching programmes to prepare executives for the digital era and second opinions on strategic issues and decision-making. We also offer services to VCs, PEs and family offices in order to help them maximise the full potential and strategic value in their investments.
Innovation360 Group’s founding team has served over 100 boards and owners as Non-Executive Directors and as advisors. We specialise in Nordic firms with high ambitions and an international focus, especially mid-size companies (50–5,000 employees), and decentralised larger corporations. Our Directors offer executive services and have vast industry expertise and in-depth knowledge in the field of FMCG, including omni-channel with retail and e-business, ICT (Information, Communication and Technology) and Manufacturing. (Information, Communication, Technology) and Manufacturing.
We strongly believe in evidence-based and long-term relationships. Our executive services are offered as retainers on a fixed monthly fee and always start with one or several interviews, followed by workshops (depending on the scope).
HIGH PERFORMANCE TEAMS
When executing change and transformation, the key to success lies in having a deep understanding of the business’ capabilities. High individual performance and high performance by teams are two of the most important success factors for a business. We offer our customers leading experts and utilise international top-ranked methodology in individual, leadership and team development to help unleash the true potential of each individual and group.
Boost High Performance Innovation Teams
We offer specialised help tailored for innovation teams. Get to now our tools & frameworks via the different solutions – as implementing a lean innovation system in your team and/or organisation.