Accelerate Innovation with Strategic Insights from 30 + of The
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Disruption Playbook: Innovation Accelerate innovation with strategic insights from 30+ of the most influential industry leaders DISRUPTION PLAYBOOK: INNOVATION Continuous innovation is According to research from McKinsey, companies that prioritized innovation in past crises emerged stronger postcrisis, outperforming the market average essential for long-term success. by more than 30%. BCG reports a similar trend – companies doubling down on innovation during downturns are more successful over the long term. And with COVID-19 rapidly The message is clear: success in the post-pandemic world begins with a strong focus on innovation today. changing demand, consumer But successful innovation isn’t easy. Even before the pandemic, a survey by behavior, and the way we do BCG revealed that although 80% of innovation executives reported innovation as a top-three strategic priority, only 30% felt their organizations business, the need for an were good at it. To make it work, you need to develop the right culture, effective innovation strategy is balance a variety of moving parts, and dodge a host of potential pitfalls. stronger than ever. To help you do just that, we’ve created this playbook. Inside, you’ll find insights from some of the brightest minds and most successful innovation leaders in business today. So wherever you are in your innovation efforts, you’ll be better able to recognize promising opportunities, quickly select the Radek Zaleski best, and successfully transform them into new sources of revenue. Partner, Fintech Lead Good luck! DISRUPTION PLAYBOOK: INNOVATION Warwick Hill Rohit Kumar Barbara Fuchs Investor and Corporate Advisor Director, Products and Innovation Head Business Model Innovation at at Supercapital Partners at Mastercard Ivoclar Vivadent Kristian Hart-Hansen Akshay Chopra Barbara Liebich-Steiner CEO and founder of LEO Head of Innovation & Product CDO and Head of Digital Strategy Innovation Lab Design, CEMEA at Visa & Solutions at UNIQA Insurance Group Jan Schütz Laura Barrabia Gil Esther Seidl-Nussbaumer Senior Innovation Manager Head of Exploration at Roche Head of Corporate Innovation at at finstreet SIGVARIS GROUP DISRUPTION PLAYBOOK: INNOVATION Jonathan Denais Mercedes Pantoja Johannes Busse Managing Director of Open CNP – Head of Technology & Architecture Independent Banking & Payment Head of Investments at CNP at LATAM Airlines Expert Assurances Rita Waite Jan Enno Einfeld Barbara Walensa Head of Payments BD & Innovation CEO at Finiata PhD, IT strategy practitioner at Millennium Anneli Bartholdy Ismail Shomala Veronika Bridgman Strategic Partner at Nordea, Digital Product Executive at gomoney Innovation & Design Strategy Innovation & Product Ownership Director at Sprint Kingdom Commercial and Business Banking DISRUPTION PLAYBOOK: INNOVATION Konrad Jarociński Steve Suarez Moritz Spangenberg Innovation Lab Manager at Global Head of Innovation, Finance Client Partner - Fintech at Netguru Netguru & Risk at HSBC Erhan Bilici Nataly Nieves Reyes Mats Lundquist Capital Planning and Stress Testing Innovation Specialist at Deutsche CEO at Telenor Connexion Officer at UBS Bank Innovation Lab Peter Collingridge Sebastian Grimm Maarten Boelens EMEA Head, D10x at Citi Ventures Head of Innovation Lab Innovation Manager at Rabobank at ZF Friedrichshafen AG DISRUPTION PLAYBOOK: INNOVATION Ron Ashraf Robin Buschmann Scrum Master at Allianz SE Head of Ecosystems at Commerzbank DISRUPTION PLAYBOOK: INNOVATION Startups and Corporate Design Breaking Innovation Thinking down Silos Digital Failure and Innovation Validation and Transformation Prototyping DISRUPTION PLAYBOOK: INNOVATION It’s difficult for innovation to reach its full potential by relying on internal Partner with resources alone. As a startup, you may be nimble and able to quickly spot and exploit opportunities in the market, but you may be restricted startups to get by budget constraints, access to customers, and a lack of facilities. ahead If you’re an enterprise, on the other hand, you may have large budgets and considerable resources at your disposal, but you’re often limited by your existing infrastructure. Risk aversion, bureaucratic processes, legacy systems, culture, and lack of creativity can all stifle innovation and prevent companies from keeping up with the pace of change required by the market. The answer for many is to seek out mutually beneficial relationships and opt for collaboration over competition. In this section, we look at the importance of external innovation opportunities and how to get the most out of them. DISRUPTION PLAYBOOK: INNOVATION Why companies should consider an outside-in approach I think every large enterprise should ask themselves whether they’ve got the internal mechanisms within the organization to drive innovation or whether they should collaborate with externals. Looking at the companies that have successfully adopted change, they have a real program where they not only disrupt themselves, but they start to look at how they do business and see whether they can adopt an outside-in approach. And I think the outside-in approach gives them a far greater understanding of what's happening in the ecosystem, what's happening around them, and what's happening in the competitive space of their products. Warwick Hill Investor and Corporate Advisor at Supercapital Partners DISRUPTION PLAYBOOK: INNOVATION Get insights into what lies ahead A corporate venture fund is one of the solutions that enterprises should think of. Not only does it allow you to scan the market to observe new trends, but it also opens up way more chances to retain a stake in the market. We believe it’s useful to have more eggs in the basket, so our venture arm is investing in companies that operate in similar areas that we do. As a stakeholder in these companies, we’re able to learn from them and better anticipate the challenges that are awaiting our projects further down the road. Kristian Hart-Hansen CEO and founder of LEO Innovation Lab DISRUPTION PLAYBOOK: INNOVATION Make it more than just a financial relationship The goal of our external innovation program is primarily learning from working with them [startups]. This means involving a lot of different stakeholders internally, so it's not just a financial relationship, and enabling them to spread good practices to the internal projects afterward. It's also a way for us as an organization to test emerging new trends that we think could have a lot of potential. This could be anything from new kinds of insurance products to blockchain. Jonathan Denais Managing Director of Open CNP – Head of Investments at CNP Assurances DISRUPTION PLAYBOOK: INNOVATION Staying relevant in fintech In the fintech industry, the current influx of public startups proves that it doesn’t take decades to climb to the top of the ladder. In fact, the ten most valuable fintech companies in the world are mostly between six and 10 years old, but none of them have gone public yet. However, with all of the innovation happening in fintech right now, that could change in an instant, creating even more competition for enterprises. Moritz Spangenberg Client Partner - Fintech at Netguru DISRUPTION PLAYBOOK: INNOVATION Partnering with startups as a tactical decision Partnering with startups is becoming more dominant in strategic as well as tactical decision-making processes. The cost of collaboration with cloud, API and other technological innovation has decreased significantly. Today the question is not if one can copy a good idea, it is all about who is delivering the best product or service, and who is able to easily integrate the solution into others’ value chains. Banks can fulfill customer needs, avoid churn, and build ecosystems around their core offering because they own the customer interface. On the other hand, this strategy emphasizes the importance of brand, trust, and reach as three of banks’ core competitive advantages. In terms of efficient innovation management, it might also be less costly trying new features with a partner than building them. A key requirement for a well- functioning partnering strategy is an efficient on- and off-boarding process. The levers to look at are a modular architecture, harmonized pricing and branding policies, and of course aligned sales incentives. Robin Buschmann Director, Digital Transformation at Commerzbank DISRUPTION PLAYBOOK: INNOVATION Incubate ideas In theory, innovation should produce products and services that are tightly aligned with customers’ unmet needs. But efforts are often hampered by the fast with design biases and behaviors of the people involved in creating them. Design thinking counters this with a human-centered but structured approach. thinking If you’re not familiar with design thinking, team members approach challenges by immersing themselves in the customer experience rather than focusing on products or services. They gather data and produce insights and then use these insights to brainstorm solutions. Team members must examine and challenge their assumptions before creating prototypes to test their proposed solutions with customers. Insights are then fed back into the process, and the solution is refined. When done well, design thinking can increase the success rate of innovation projects and result in a real competitive advantage for your organization. In this section, we look at how you can incorporate it into your own initiatives. DISRUPTION PLAYBOOK: INNOVATION 8 questions to ask in the exploration phase I'm responsible for exploration, the first part of the innovation funnel. The idea of exploration is to do design thinking. We go in with disciplinary teams and first try to understand what knowledge we have inside the organization. Then we go out and talk to our customers and try to answer a few questions: Is it a problem we want to solve? Is it desirable? Do our customers need a solution? Is it viable? Can we make money out of it? Are customers willing to pay? Is it feasible? Is the technology out there, or do we need to wait 20 years to make that happen? Based on that, we decide whether we want to pass the project into a design phase, to really deep dive and design a solution, or whether we just stop and explore another one.