How Digital Transforms Innovation Strategy
The business world is experiencing a major attack on traditional business models due to radical technological innovation.
Recently, Boston Consulting Group published an interesting article describing results of their research into technological innovation in companies.
Eleven of the fifty companies named in BCG’s 2018 ranking of the most innovative companies– including seven of the top ten – are digital natives and thus digital innovators by definition. Most, if not all, of the others have built digital technologies into their innovation programs. The trend is pervasive across industries, penetrating what were heretofore the most stolid and conservative businesses.
Some of the large corporations like the above may succeed by rapid implementation of new technology in key sections of their “DNA-strings” but a considerable proportion of the others may succumb.
And what about incumbent SMEs? How can they survive and use technology for rapid growth?
As the owner and / or manager of an incumbent SME you need to plot the course and steer your business at the same time. In contrast to start-up companies your business may have large fixed costs that must be covered by your existing business, and in contrast to large corporations you may not have a staff of analysts who can examine and evaluate the many new digital opportunities.
However, the BCG-article may offer some guidance as it demonstrates “How Digital Transforms Innovation Strategy”. BCG finds “that strong innovators assign much greater importance than weak innovators to big data, speed of technology adoption, mobile products, digital design, and technology platforms generally. There are even bigger gaps in how aggressively companies are pursuing these innovation avenues……
They should take into account the following five questions as they rethink—if not revamp—their innovation strategies for the digital age
- WHAT’S POSSIBLE?
- HOW DO WE USE DATA AND SOFTWARE?
- HOW DO WE ACCESS THE CAPABILITIES WE NEED?
- WHAT ARE THE RISKS OF NOT MOVING FAST ENOUGH?
- WHAT ARE LEADERS DOING?”
The BCG-article is a chapter from the BCG report: The Most Innovative Companies 2018: Innovators Go All In On Digital.