Putting the Customer First Throughout the Purchase Journey

Strengthening Brand Loyalty

Remember, all it takes is one bad experience to turn off a customer from a brand or product, even one they have been loyal to. So, strengthening customer experiences can in the end result impact and better the bottom line. This means allocating resources, technology and personnel to enhance those consumer touchpoints, as well as enhancing the personalized touches that will make the customer return again and again.

According to the blog on agency 0707, “How to Skyrocket Your Profits With Effective Customer Experience Innovation,” this type of innovation should not come out only when you want to sell products or provide help desk support. “Rather its main focus should rest in maintaining long-term relationships by delivering high quality service at every touchpoint possible throughout all stages of the customer’s shopping journey.”

By focusing on the forward-looking CX experience, it can lead to new growth for the company, expanding it into new territories and regions. It can heighten the personalized interactions with the customer. This can also benefit customer satisfaction in the long run, which can then lead to word-of-mouth marketing and social media traction. CX innovation can better brand image and loyalty; deliver higher return on investment; increase higher conversions through positive customer feedback; understand customers better; and create higher customer engagement.

There are several stages of CX innovation that can be focused upon, notes 0707, including:

  1. Product innovation: Innovating to provide a better experience for customers will fortify their loyalty and make them spend more in the future. Innovative products can lead the market in their respective industries, which is why listening closely matters.
  2. Service innovation: Service innovation is the process of creating new services or improving old ones. Service innovations can come from anywhere, like when you add more features to an app so it does what people want without needing all their information first.
  3. Business innovation: Whether you’re an established company or just starting out, one of the first steps to take is looking at how disruptive innovation can benefit your business. Disruptive technologies have changed entire industries and created new ecosystems for companies who are willing to adapt quickly enough.
  4. Organizational innovation: The goal of organizational innovation is to turn fresh ideas into successful products and services for your customers. Through workplace invention you are giving all those involved in an organization a platform for their creativity, letting them take what they need from this experience so that it can be applied back at work with increased success rates.

Creating An Impression

In a blog on All Things Insights, “Creating Synergy by Improving Customer Experience,” we looked closer at the balance between CX and UX. Customer experience (CX) is the impression your customers have of your brand based on all of the interactions they’ve had with your business. User experience (UX) is specific to how people use and perceive your products. So how can these key components, customer experience and user experience, work together, create synergies and benefit the marketer in improving the overall experience?

Why does the difference between these two experiences matter? Specifying between internal roles and responsibilities is key. The UX team needs to focus on enhancing product usability. Meanwhile, a positive brand experience is the significant mark of CX. Separate but integrated strategies could be the difference between success and failure on these two interrelated fronts.

Innovation Synergies

Customer experience, whether internal or external, can benefit the innovation team in several ways, according to ChatGPT:

  1. Identifying pain points: By focusing on customer experience, the innovation team can gain valuable insights into the pain points, challenges, and frustrations customers face while interacting with a product or service. This understanding helps the team identify areas for improvement and innovation.
  2. Driving customer-centric innovation: CX provides a customer-centric lens through which the innovation team can develop new ideas, products, and services. By considering the customer’s needs, preferences, and desires, the team can create innovative solutions that address specific pain points and enhance the overall customer experience.
  3. Enhancing product/service design: CX insights can inform the design and development of products and services. By understanding how customers interact with existing offerings, the innovation team can optimize features, usability, and functionality to align with customer expectations and preferences. This iterative process leads to improved designs and user experiences.
  4. Fostering empathy and understanding: A deep understanding of the customer experience helps the innovation team empathize with customers and view challenges from their perspective. This empathy can fuel creative problem-solving and lead to breakthrough innovations that truly resonate with customers.
  5. Increasing customer loyalty and retention: A positive customer experience is closely tied to customer loyalty and retention. By prioritizing CX, the innovation team can develop innovative solutions that exceed customer expectations, leading to higher satisfaction and loyalty. Satisfied customers are more likely to stay loyal to a brand and advocate for its products or services, contributing to long-term business success.
  6. Differentiating from competitors: In today’s competitive market, delivering exceptional customer experiences can be a key differentiator. By leveraging CX insights, the innovation team can develop unique and innovative offerings that stand out from competitors. This differentiation can attract new customers, retain existing ones, and position the organization as an industry leader.
  7. Generating valuable feedback and data: CX initiatives often involve collecting feedback and data from customers, which can provide valuable insights for the innovation team. Analyzing customer feedback, reviews, and behavior patterns can uncover valuable opportunities for improvement, innovation, and market trends. These insights serve as a foundation for evidence-based decision-making within the innovation process.

Making An Impact

Prioritizing customer experience benefits the innovation team by providing valuable insights, driving customer-centric innovation, enhancing design, fostering empathy, increasing loyalty, differentiating from competitors, and generating valuable feedback and data.

By listening to customers, by creating a culture of customer feedback and insights, by developing a strong online presence, one can create a focused organization that puts customer experience first. Continuous observation, testing and communication with customers is key to connecting the dots to innovation. By aligning innovation efforts with customer needs, the team can create successful, impactful, and customer-centric solutions.

Video courtesy of Positive Revolution

Accelerating Innovation with AI and Big Data Analytics

During our conversation, we explored how companies leverage these tools. Unilever, my company, is one example, leveraging AI and big data analytics to develop new products and capabilities. Here are a few recent examples of its use to drive best-in-class products and capabilities.

Product Development

Unilever is leveraging AI for product development, specifically in the creation of performance-boosting enzymes for home care products. By harnessing AI technology, Unilever seeks to enhance the efficacy and sustainability of their cleaning and laundry solutions.

Collaborating with Arzeda, a leading protein design technology pioneer, Unilever has significantly reduced the time required for developing new technologies. In a remarkable feat, the team created new enzymes with improved stability, performance, and sustainability benefits within 18 months. This accelerated timeline represents a five-fold increase in speed compared to previous enzyme development processes.

Peter ter Kulve, Unilever Home Care President, highlights the importance of this progress, stating, “The progress made in just 18 months with Arzeda’s Intelligent Protein Design Technology shows how the convergence of Artificial Intelligence and biology is a game-changer for an industry like home care.”

Consumer Insights and Trends

By employing AI-driven technologies, market researchers can identify and predict consumer preferences and behaviors before they manifest. The integration of data, technology, and human expertise empowers Unilever to deliver innovative, high-performance products aligned with consumers’ desires for environmentally friendly and healthier options.

Sustainability and Design Optimization

In line with its commitment to sustainability, Unilever recognizes the importance of designing products with environmental considerations in mind. Utilizing in-silico design processes, Unilever virtually maps, models, and experiments with innovative formulations. This approach allows them to understand the behavior and interaction of molecular compounds, ensuring optimal performance, biodegradability, and regional preferences. Through in-silico design, nutrition teams can test millions of recipe combinations in seconds, resulting in products tailored to regional tastes and preferences.

Supply Chain Optimization

The transformative impact of AI and big data analytics on operations extends beyond the laboratory. Unilever employs AI to optimize supply chain operations, enhance operational efficiency, and respond to real-time market changes. For example, by integrating R&D and supply chain data with manufacturing simulations, the company gains valuable insights and makes data-led decisions, enabling the effective deployment of their products to billions of consumers worldwide. These advancements empower and create more effective, desirable, and scalable innovations.

Companies that embrace AI, big data analytics, and other cutting-edge science and technologies to drive innovation will lead in the market and a better future. As Alberto Prado, Unilever R&D’s Head of Digital & Partnerships, aptly states: “I firmly believe that science and technology will play a central role in helping innovate for a better future. The combination of digital and leading-edge science is empowering our teams to progress their fields not by years, but by decades.”

Strengthen the Supply Chain to Build the Product Pipeline

Designing the Supply Chain

An efficient and well-organized supply chain is key to a new product being introduced to the market. Supply chain managers must think more proactively, with an eye on innovation, to balance product flow and costs during a product’s life cycle, from the launch and growth phases to maturity and market decline stages. The supply chain must change in response to this evolution in the marketplace. As sales increase, the supply chain must meet demand and deliver product. The company may shift from low volume to high volume in terms of its supply chain. Improving supply chain efficiency is also a necessary step as the product matures.

Innovation can be a key factor that can influence and impact the supply chain throughout these stages. According to Michigan State University’s blog on innovation in supply chain, there are five aspects of the supply chain that can be innovated to meet consumers’ needs and save on costs:

  1. Design for Manufacture: Design the product to make it easy to produce, thereby reducing the costs of manufacturing.
  2. Design for Assembly: Design the product to minimize the number of components, easing the assembly process. Often, this results in building subsystems that are easier to put together.
  3. Design for Product Serviceability: Design the product for ease of assembly, disassembly and component reuse. These products are often easier to repair, compared to products that are assembled with bigger components, making individual parts more difficult to access.
  4. Design for Six Sigma: Design the product to eliminate failures, improve consistency and reduce costs. For example, an appliance manufacturer decides to use one type of electric cord – instead of a dozen types – across all of its products. Standardizing parts throughout the supply chain is a good example of design for Six Sigma.
  5. Design for Environment: Design the product to reduce its environmental impact throughout its lifecycle. This might be accomplished through less packaging, a more efficient supply chain or by recycling waste along the way.

Scaling the Supply Chain

If your company has successfully developed an innovative product or service, you might be at the stage of the process known as scalability, which All Things Innovation looked at in a recent post, “Sizing Up Your Innovation’s Impact.” Perhaps you have created something new but your hard work isn’t over yet. It is just beginning, as you gear up to bring the product to market.

It will be key to work with the supply chain and its specialists to get the product pipeline flowing. The challenges are numerous, and there will be many bottlenecks along the way. Stay committed to pursuing the best results possible by scaling viable ideas into products, services and businesses, all while keeping in mind that it’s value creation that you’re after. It’s time to scale up.

Benefiting the Chain

Supply chain specialists can bring several benefits to an innovation team. We asked ChatGPT some ways in which supply chain specialists can contribute and add value to an innovation team:

  1. Market and industry knowledge: Supply chain specialists often have a deep understanding of the market dynamics, industry trends, and customer preferences. They can provide insights on supply chain complexities, logistics, and distribution networks. This knowledge can help the innovation team align their solutions with market demands, optimize their supply chain strategies, and make informed decisions about product development and commercialization.
  2. Supplier management and collaboration: Supply chain specialists have expertise in managing relationships with suppliers, vendors, and partners. They can leverage their networks to identify potential collaborators, negotiate contracts, and establish strategic partnerships. Their experience in supplier management can help the innovation team access necessary resources, secure reliable suppliers, and streamline the procurement process.
  3. Cost optimization: Supply chain specialists are skilled at analyzing costs associated with the procurement, production, and distribution of goods and services. They can contribute to the innovation team by identifying opportunities for cost optimization, efficiency improvements, and waste reduction. Their input can help shape the innovation process to ensure cost-effective solutions without compromising quality or delivery timelines.
  4. Risk management: Supply chain specialists are adept at assessing and mitigating risks within the supply chain. They can identify potential bottlenecks, vulnerabilities, and disruptions that may impact the innovation process. By integrating risk management practices into the innovation team’s workflow, supply chain specialists can help anticipate and address potential challenges, ensuring a smooth and resilient supply chain for innovative products or services.
  5. Time-to-market acceleration: Supply chain optimization plays a crucial role in reducing time-to-market for innovative solutions. Supply chain specialists can contribute by streamlining processes, improving coordination between different stakeholders, and minimizing lead times. Their expertise in inventory management, production planning, and distribution can help the innovation team meet project deadlines and gain a competitive edge.
  6. Sustainability and ethical considerations: In today’s business landscape, sustainability and ethical considerations are increasingly important. Supply chain specialists can contribute by evaluating and integrating sustainability practices into the innovation process. They can help identify eco-friendly materials, assess the environmental impact of production and distribution, and ensure adherence to ethical standards throughout the supply chain.
  7. Continuous improvement: Supply chain specialists are accustomed to continuous improvement methodologies, such as Lean or Six Sigma. They can apply these principles to the innovation team’s processes, identifying inefficiencies, optimizing workflows, and driving improvement. Their focus on data-driven decision-making and process optimization can enhance the efficiency and effectiveness of the innovation team.

The Resilient Supply Chain

The supply chain is often the backbone of the company. And it’s not just about the latest technology, new drones, or IT software solution. It’s about the deployment of proven technologies and processes, and the small gains that come with incremental innovation and improvements over time.

Overall, supply chain specialists bring valuable expertise in market knowledge, supplier management, cost optimization, risk management, time-to-market acceleration, sustainability, and continuous improvement. Their contributions can help the innovation team navigate the complexities of the supply chain, optimize processes, and deliver innovative solutions effectively, and with agility.

As Supply Chain Game Changer notes in its article on supply chain innovation, “As supply chain leaders, we have the power to influence and transform the way innovation is developed, nurtured and implemented in our industry. The future of the supply chain is based on collaboration, connectivity and agility, and most important, being resilient. We need to work together to continue bringing innovation throughout the supply chain and ensure that it is fostered by all levels within companies.”

Video courtesy of Association for Supply Chain Management

IT & Innovation Team to Support New Growth Frontiers

Beyond Tech Support

Many would make the case that the IT department, or IT specialist on the team, plays an integral role in the company’s innovation efforts. The IT team is often in a foundational role, as more organizations invest time and resources in technology, especially with the growing wave of digital transformation taking place across industries in the innovation space. So, in essence, the IT team supports the innovation team by making sure operations and infrastructure runs smoothly.

However, IT can also provide much more than tech support. As one blog on IdeaWake, “What Is IT’s Role in Your Organization’s Innovation Plan?” notes, “By allowing your IT department to lead the way on technological innovation, your organization will witness a wave of innovative thinking, from management to your frontline employees. The most innovative companies have already recognized this, with over 62% of high-growth companies investing in technology in order to grow their innovative potential.”

Strategizing with your IT leaders can be as simple as holding regular meetings. Weekly interdepartmental meetings help groups recalibrate and prioritize present tasks while developing future assets. This will help bring in the IT specialist as a strategic partner in innovation and transformation efforts. This will also help create a focus on risk assessment. Creating and cultivating an atmosphere of sharing will help both IT and innovation teams with co-creation initiatives. Recognize your IT professionals’ skills and listen to what they have to say. Communicate with each other and rely on their experience and technical expertise. You can be sure that other newcomers, startups and disruptors to your industry are doing the same as they develop their products and services.

Going Digital

An article on All Things Innovation recently explored, “Putting Together Your Innovation Team.” Innovation teams are no longer working in a bubble, or at least not as much as they used to. Moving forward for agile organizations there is a much greater emphasis on cross-collaboration with other teams and departments in the company. From marketing and finance, to research and insights, to technology and IT services, innovation teams are expected to integrate, co-create and align with the business and its strategies on a broader level.

In terms of technology, digital transformation is clearly a key hot topic in this year’s Innovation Spend & Trends Report, as innovation executives weigh in on the issue of advancing technology in their data capture, analysis and visualization needs. In the survey, just under two-thirds of the community list digital transformation as the biggest opportunity for the innovation discipline. About 65% of respondents listed digital transformation as the biggest opportunity in the field. These digital initiatives have existed in primarily finance and IT over the past few years. But efficiencies have been gained and now it seems that the innovation discipline is being tasked with taking those digital technology plans forward.

Plug into IT

Information technology specialists can bring several benefits to an innovation team. We plugged into ChatGPT and explored some ways in which IT specialists can contribute and add value to an innovation team:

  1. Technical Expertise: IT specialists possess in-depth technical knowledge and expertise in various areas of information technology. They can provide valuable insights and guidance on emerging technologies, software development, infrastructure, data management, and security. Their expertise can help the innovation team make informed decisions and develop effective technology solutions.
  2. Problem Solving and Troubleshooting: IT specialists are skilled at problem-solving and troubleshooting complex technical issues. They can apply their analytical thinking and troubleshooting skills to identify and resolve challenges that arise during the innovation process. Their ability to find practical solutions can save time and resources for the team.
  3. Technology Evaluation and Selection: As technology evolves rapidly, IT specialists can assist the innovation team in evaluating and selecting the right tools, software, and technologies to support their projects. They can conduct thorough assessments, compare options, and provide recommendations based on factors like functionality, scalability, compatibility, and cost-effectiveness.
  4. System Integration: IT specialists can help integrate various systems and technologies within the innovation team’s workflow. They can streamline processes, automate tasks, and ensure seamless communication and data exchange between different tools and platforms. This integration can enhance collaboration, efficiency, and overall productivity of the team.
  5. Data Analysis and Insights: Data plays a crucial role in innovation, and IT specialists can contribute by analyzing and interpreting data relevant to the team’s projects. They can leverage their data management skills, utilize analytical tools, and extract meaningful insights from large datasets. These insights can inform decision-making, identify trends, and guide the development of innovative solutions.
  6. Cybersecurity and Risk Mitigation: With the increasing reliance on technology, cybersecurity is a critical concern for innovation teams. IT specialists can contribute their knowledge of cybersecurity best practices, risk assessment, and data privacy regulations. They can help identify potential vulnerabilities, implement security measures, and ensure the protection of sensitive information throughout the innovation process.
  7. Continuous Learning and Adaptability: IT specialists are accustomed to continuous learning and keeping up with the latest technological advancements. They can bring this mindset to the innovation team, staying updated on industry trends, exploring new tools and methodologies, and sharing their knowledge with team members. Their adaptability can contribute to an agile and innovative work environment.

Driving Transformation

According to Deloitte’s Innovation Study in 2021, 80% of CIOs and tech leaders say they are driving their companies’ innovation efforts. The next most common roles involved in innovation were strategy at 48% and operations at 43%, indicating that technology by a wide margin is the primary function driving enterprise innovation. Deloitte notes, “CIOs are uniquely positioned to fuel their company’s growth, as they are already responsible for high-growth initiatives like data monetization and digital transformation. With nearly three quarters of organizations expecting to have an excellent or leading innovation capability in the next two years, CIOs should develop a methodical approach to innovation that can lead to differentiated growth.”

Overall, IT specialists bring a unique set of skills and expertise to an innovation team, enabling them to leverage technology effectively, overcome technical challenges, and drive successful innovation initiatives. Clarify your mission, build the right operating model and establish agile ways of working with IT.

As Deloitte notes in its article, “The innovation imperative: Lessons from high-growth companies,” “Accomplishing this across the innovation life cycle and scaling solutions to drive corporate growth is not an easy task—but savvy CIOs know that it is the only way for them to differentiate and deliver impact. Tech leaders should view this as an opportunity to rise to the occasion and push their organizations to new frontiers of growth.”

Video courtesy of CIO

The Finance Factor in Innovation

A Catalyst for Growth

The chief financial officer is often seen as merely controlling spending and hitting revenue targets. “But as a key leader in the organization, the CFO is critical to helping establish the “tone at the top” around innovation culture. In their role, the CFO can not only support but also actively encourage the innovation process as a catalyst for growth,” argues Kendra MacDonald, Chief Audit Executive of Deloitte Global, in an article entitled, “The chief financial officer’s role as an innovation leader.” With more pressure to innovate, and technology constantly changing, companies are increasingly faced with the mandate to innovate. “A sustained focus on innovation does ultimately lead to superior financial performance, a compelling argument for the CFO.”

Whether you are working in a silo or moving beyond the silo mentality, successful innovation teams need champions in the organization that can help identify customer challenges and opportunities, and develop short- and long-term goals, with the aim of creating both incremental and transformative innovations. The finance team could be in a prime position to give that support. MacDonald notes, “For this team to be successful, it needs to understand the innovation ambition of the organization, which needs to be defined and supported by the leadership team.”

Both innovation and finance teams need to be agile in this new reality. For innovation, it is often difficult to measure success. Success may take many small steps in the years that follow before fully developing into a profitable venture. In addition to success, there can be many failures along the road as well, and it’s difficult to change the culture of both the innovation team and the finance team.

So how can the CFO help establish performance measures for those involved in innovation that are challenging but not discouraging? MacDonald makes the case that, “Innovation is a process that requires discipline. Innovation team members from the finance function can help build that process and discipline. They can help establish measures for success—both financial measures, like return on investment and net new revenue growth, and non-financial measures—and determine how many ideas have been generated and what milestones need to be achieved within a project to obtain future funding. They can also help innovation leaders think through the potential risks of a project and help educate the business on the upside and downside throughout the innovation process.”

Embracing the Culture

All Things Innovation recently looked at “Growing A Culture for Business Innovation,” and whether it entails a large jump or a small step, the innovation pipeline for a business keeps it moving forward through a competitive landscape. Business innovation is an organization’s process for introducing new ideas, workflows, methodologies, services or products. This can create long-term brand loyalty and brand differentiation.

A key to the process is fostering a culture of innovation, throughout the company and its teams, from innovation to finance. In fostering a culture of innovation, there must be a balance between the small steps and large leaps that encourage the sustaining and disruptive innovations that encompass business growth. Not to be discounted, it’s important that executives have an open door policy, encouraging their employees in a communicative environment. Adaptability in a safe environment, an openness to new ways of thinking, and embracing change can all take the business of innovation to new heights.

The Finance Factor

Finance plays a significant role in driving and supporting innovation within an organization. Here are several ways in which finance can contribute to innovation, courtesy of ChatGPT:

  1. Funding innovation initiatives: Finance provides the necessary capital to fund innovation projects. Whether it’s developing new products, exploring new markets, or investing in research and development, innovation often requires financial resources. Finance teams evaluate the feasibility and potential returns of innovation initiatives, allocate budgets, and secure funding to support these projects. By providing the necessary financial backing, finance enables organizations to pursue innovative ideas and turn them into reality.
  2. Risk assessment and management: Innovation inherently involves risks, and finance plays a vital role in assessing and managing those risks. Finance teams conduct thorough financial analyses, including cost projections, revenue forecasts, and return on investment (ROI) assessments. They evaluate the financial viability of innovation projects and assess potential risks and rewards. By conducting risk assessments, finance helps organizations make informed decisions about resource allocation and investment in innovation initiatives.
  3. Performance measurement and evaluation: Finance provides key performance indicators (KPIs) and metrics to measure the success and impact of innovation efforts. Financial metrics, such as revenue growth, profitability, and return on innovation investment, help assess the effectiveness of innovation initiatives. By tracking financial performance, finance teams provide insights into the financial outcomes of innovation, allowing organizations to refine strategies, optimize resource allocation, and make data-driven decisions to drive innovation forward.
  4. Budgeting and resource allocation: Finance plays a critical role in budgeting and allocating resources for innovation activities. By working closely with other departments and stakeholders, finance teams determine the allocation of funds, personnel, and other resources to support innovation projects. They help prioritize initiatives based on their potential impact and financial viability. Effective budgeting and resource allocation ensure that innovation initiatives receive the necessary support to succeed.
  5. Identifying investment opportunities: Finance teams can actively identify and evaluate investment opportunities that support innovation. They analyze market trends, conduct financial due diligence, and assess the potential returns of investments in innovative startups, technologies, or partnerships. By actively seeking investment opportunities, finance contributes to the organization’s innovation ecosystem and helps foster a culture of innovation through strategic investments.
  6. Cost optimization and efficiency: Finance plays a role in driving cost optimization and efficiency, which can free up resources for innovation. By assessing existing processes, workflows, and cost structures, finance teams identify areas for improvement and streamline operations. This allows organizations to redirect resources to innovation initiatives, maximizing the impact of their investments in innovation.

Sustaining Innovation

Finance plays a multifaceted role in innovation. From funding innovation projects and managing risks to measuring performance and optimizing costs, finance provides the financial foundation and strategic guidance that enables organizations to pursue and sustain innovation. By aligning financial strategies with innovation goals, finance contributes to the success and growth of innovative initiatives.

So does it all come down to the culture of the company? If the CFO “gets it,” they can be crucial to the innovation team’s success. Deloitte’s MacDonald closes her article with a few pertinent questions the CFO could ask of themselves and their finance team:

  • Do you understand the innovation ambition within your organization?
  • Have you established measures to track innovation activities?
  • Have you performed an assessment of your organization’s innovation maturity?
  • Do members of the finance team have the opportunity to participate on innovation teams throughout the innovation process?
  • Are you leading by example by considering opportunities to innovate within the finance function?

Video courtesy of Strategyzer

Make Insights Critical to the Innovation Process

Leveraging insights in this way can help target commercial opportunities, and provide the impetus and validity of product concepts. On the opposite side of the coin, the failure of an innovation in the marketplace could very well be pinned on the lack of insights in the first place. Using insights in tandem with methodologies such as “Jobs to Be Done” is a useful way of employing insights to uncover innovation strategies. Design thinking, too, allows insights and market research to take the lead in innovation efforts, and can lead to more rapid initiatives to develop products, experiences and services for testing.

Understanding Consumer Value

Using insights means developing market research that is more than just keeping an eye on competitors or developing a product based on a creative whim. As a blog on eCMetrics, “Using Insights for Innovation Success,” points out, “The real motivation should be to create something valuable for the customer. They should not miss a very important ingredient in this process. What is the essential ingredient? Insight! Brands that have a real and deep knowledge of their consumers are way ahead of competitors. They understand consumer values and needs.”

ECMetrics goes further in pointing out that a more focused and deeper understanding of consumers is key. “The most interesting innovations of your specific product for your specific consumer should be designed based on specific insights. It is important that you are focused on capturing the actual perception of your customers about the product you want to market.” Inviting consumers to participate in the innovation should also not be overlooked. Co-creation and open innovation concepts can help position the overall process better while speeding up both success and, at times, failure of the innovation.

Investing into Customer Insights

In a recent blog post on All Things Insights, “Investing Insights into Product & Brand Innovation,” we looked at how customer insights are a key cog in driving brand and product developments. And so, it’s imperative that the Insights discipline invests in product and brand innovation. Our H2 2022 Insights Spend & Trends Report showcased these results—insights was aiming the greatest share of budget accordingly.

Using surveys, focus groups, interviews and other methods to collect feedback from customers about their needs and wants helps the product and brand innovation process. This gives the organization an idea of what your customers think about existing products and services, as well as ideas for potential new products or services that could be developed. Check out the blog here for more on how insights are driving new growth potential.

In addition, All Things Innovation recently explored the topic of “The Value of Insights for Innovation.” Integrating insights into innovation is always a challenge but rewards the innovation team with a better understanding of their product or service and ultimately the needs of the end consumer. Often, innovations are a response to a competitor’s project or a major trend in the marketplace. But another motivation for the product must not be overlooked: Creating something of value for the consumer.

Building a Culture of Innovation

Insights can play a crucial role in driving innovation within an organization. They provide a foundation for understanding customer needs, identifying market trends, improving decision-making, inspiring creativity, enhancing product development, and fostering a culture of innovation. By leveraging insights effectively, organizations can drive meaningful and impactful innovation initiatives. Here are several ways in which insights can benefit innovation, provided by ChatGPT:

  1. Identifying customer needs: Insights help organizations gain a deep understanding of their customers’ needs, desires, pain points, and preferences. By analyzing data, conducting market research, and leveraging feedback channels, organizations can uncover valuable insights about their target audience. These insights serve as a foundation for innovation by enabling the development of products, services, and solutions that effectively address customer needs.
  2. Uncovering market trends and opportunities: Insights allow organizations to stay ahead of market trends and identify emerging opportunities. By analyzing industry data, competitor analysis, and monitoring customer feedback, organizations can spot gaps in the market or evolving customer demands. This information helps drive innovation by enabling the organization to create new offerings or modify existing ones to align with changing market dynamics.
  3. Enhancing decision-making: Insights provide organizations with data-driven information to support decision-making processes. When making strategic or operational decisions, having access to relevant insights helps reduce uncertainty and mitigate risks. Innovation often involves taking calculated risks, and insights provide valuable information to evaluate potential opportunities, assess market viability, and make informed choices that foster innovation.
  4. Inspiring creativity and ideation: Insights can serve as a wellspring of inspiration for creative thinking and ideation. By understanding customer behaviors, preferences, and challenges, organizations can generate innovative ideas and concepts to address those specific needs. Insights provide valuable context, enabling employees and teams to think outside the box and come up with inventive solutions or approaches that differentiate the organization from competitors.
  5. Improving product/service development: Insights contribute to improving the development of products or services by providing valuable feedback and iterative refinement. Organizations can leverage insights obtained from user testing, customer feedback, and iterative prototyping to refine and enhance their offerings. This iterative process, driven by insights, leads to continuous improvement and the development of innovative solutions that meet or exceed customer expectations.
  6. Fostering a culture of innovation: Insights can help foster a culture of innovation within an organization. By promoting data-driven decision-making and encouraging employees to seek and share insights, organizations create an environment that values innovation. Insights empower employees to challenge the status quo, identify opportunities, and contribute innovative ideas to drive the organization forward.

Why Consumer Insights Are Critical

Insights can be key to fueling innovation and proving viability. No matter how great your product is, it won’t sell unless people actually want it. Gaining consumer insights is mission critical for innovation teams in this competitive marketplace. As a blog on the subject of insights providing value, by Amit Gupta from Fractal Analytics, puts it, one must look for the three I’s: Insight, Impact, and Innovation, in that order.

The blog goes on to describe three additional I’s that are key to the ecosystem: Interpretation, as in the need for the accurate interpretation of the insight; implementation, as in the need to drive implementation to realize the impact; and influence, as in the need to recognize the influence the innovation will have. And, as always, keeping the consumer front and center.

Video courtesy of Voxpopme

Setting the Strategic Direction

A chief strategy officer also works with the business’ executive management team to identify needs, develop action plans and oversee the implementation and monitoring of other plans. They also ensure that the executive management team is aligned on strategic goals to create and implement the company’s short-term and long-range plans.

Empowering Change

Today, CEO’s have less time for strategy and so over the years the CSO position emerged as a solution. This executive is tasked with creating, communicating, executing, and sustaining a company’s strategic initiatives. This is not done in isolation or simply focused on pure strategy but rather the CSO is a seasoned executive, a doer with the mandate to act as well as to advise in a rapid manner.

According to a Harvard Business Review article on the role of the CSO, strategy executives are charged with three critical jobs in terms of strategy execution. “First, they must clarify the company’s strategy for themselves and for every business unit and function, ensuring that all employees understand the details of the strategic plan and how their work connects to corporate goals. Second, CSOs must drive immediate change. The focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. Finally, a CSO must drive decision making that sustains organizational change.”

Clearly, the CSO role taps into some of the same pathways that the innovation unit navigates, such as communicating and setting the strategic direction, driving the change initiative and championing the organizational change that must ensue. Often this directly connects to the very changes that the innovation team is trying to implement in developing a new product or service. The CSO is further charged with, “formalizing the company’s strategic-planning processes, forging new working relationships and synergies across the organization, and establishing greater transparency and accountability for those people carrying out the company’s strategy.” This might sound familiar to those working in innovation teams that have a heightened sense of cross collaboration, a continuous process that marks today’s agile innovation methodology that is aiming to align and exert influence on the business.

Leading the Way to Innovation

As the community’s recent Innovation Spend & Trends Report indicated, innovation teams are not working in a bubble, or at least not as much as they used to. Are the days of working in a “silo” gone forever? As the All Things Innovation’s recent blog post explored, “Putting Together Your Innovation Team,” moving forward for agile organizations there is a much greater emphasis on cross-collaboration with other teams and departments in the company. From the CSIO role to marketing and finance, to research and insights, to technology and IT services, innovation teams are expected to integrate, co-create and align with the business and its strategies on a broader level.

In another blog post, Seth Adler talks with Volvo’s Mike Hatrick on the subject of “Innovation Culture.” Innovation starts with the employees of an organization. As we know, the people that work for a business are some of its greatest assets. In today’s world there is a struggle with professional burnout, and Hatrick alluded to the word “resilience” as being an important part of today’s world.

Another important topic for Hatrick involved the culture of an organization as a whole. To Hatrick, changing an entire company culture isn’t an easy task and, most certainly, can’t happen overnight. He advised that the best way to start the process of change was to start it with a few individuals. Working with these would evolve to small teams. “Grow your tribe. Get some successes. Build, build, build – and actually, over time, you build a culture.”

Creating the Environment

The chief strategy and innovation officer plays a crucial role in driving and supporting innovation within a company. Overall, the CSIO acts as a catalyst for innovation, providing strategic direction, resources, support, and collaboration opportunities to the innovation team. Their role is to create an environment where innovation thrives, leading to increased competitiveness, growth, and success for the company. Per ChatGPT, here are several ways the CSIO can benefit the innovation team:

  1. Strategic Vision: The CSIO establishes a clear strategic vision for the company’s innovation efforts. They define the long-term goals, objectives, and direction for innovation, aligning it with the overall corporate strategy. This clarity provides the innovation team with a sense of purpose and ensures their efforts are focused on the right areas.
  2. Resource Allocation: The CSIO oversees the allocation of resources, including budget, talent, and technology, to support the innovation team. They ensure that the team has the necessary tools, funding, and human capital to pursue innovative projects effectively. By advocating for adequate resources, the CSIO empowers the innovation team to explore new ideas and drive meaningful change.
  3. Cross-Functional Collaboration: The CSIO facilitates cross-functional collaboration between the innovation team and other departments within the company. They encourage cooperation and knowledge sharing, helping the team leverage diverse perspectives and expertise from different areas. This collaboration enables the innovation team to access valuable insights and resources, accelerating the development and implementation of innovative ideas.
  4. Risk Management: Innovation inherently involves risks, and the CSIO plays a crucial role in managing those risks. They provide guidance and support to the innovation team in assessing and mitigating potential risks associated with new initiatives. By helping the team navigate uncertainties, the CSIO fosters an environment where calculated risks are taken, fostering a culture of innovation.
  5. Performance Tracking and Metrics: The CSIO establishes performance metrics and key performance indicators (KPIs) to measure the success of innovation initiatives. They track the team’s progress, provide feedback, and make data-driven decisions based on the outcomes. This feedback loop enables continuous improvement and helps the innovation team focus their efforts on high-impact projects.
  6. External Partnerships: The CSIO builds strategic partnerships and collaborations with external entities, such as startups, universities, research institutions, and industry experts. These partnerships can provide access to emerging technologies, market insights, and fresh perspectives. The CSIO leverages these external relationships to enhance the innovation team’s capabilities and identify potential opportunities for collaboration or acquisition.
  7. Culture and Change Management: The CSIO fosters a culture of innovation within the organization. They promote an environment that values creativity, risk-taking, and learning from failures. The CSIO also plays a critical role in change management, ensuring that the company adapts and embraces new ideas and processes brought forth by the innovation team. By championing a culture of innovation, the CSIO encourages and empowers the entire organization to participate in the innovation process.

The Many Faces of the CSO

The CSO or CSIO certainly wears many hats in an organization as the role looks to support strategy and innovation. Yet the sheer scope and influence of the role is balanced somewhat by the ambiguity of the position as well.

In an article from Deloitte, “The Making of a Successful Chief Strategy Officer,” the author outlines the many faces of the CSO role. This includes:

  • The advisor—helping shape the strategy.
  • The sentinel—sensing and interpreting market shifts.
  • The banker—driving deals and partnerships.
  • The engineer—designing and running the strategic planning process.
  • The aide de camp—the CEO’s unofficial chief of staff.
  • The special project leader—tackling miscellaneous high-impact initiatives.

Depending on the type of organization and its areas of focus, a CSO might take on many different faces, or roles, in the company, as well as confront many different types of challenges. Ideally, the CSO might further create a path of relevance and contribution to the company’s performance. One might debate, optimistically, whether the role also includes being a champion of innovation.

Video courtesy of Engage Innovate

Unleashing Innovation with UX Design

With user experience a growing focus, the UX specialist or department can be positioned with or alongside innovation teams, and break the “silo” mentality, which is often prevalent in organizations, whether larger companies or smaller businesses. These specialists can work cross-collaboratively to bring new ideas and products to market. This is especially important in terms of getting closer to the customer, influencing management, conducting user research and enriching the customer value of the initiative.

Be An Influencer

By focusing on customer value, the UX specialist can get everyone on the same page, and bring innovation to the forefront of an organization. Kevin Philpott, Head of User Experience at Pie Insurance, discusses in a Forbes article, “Nine Ways UX Can Turbocharge Innovation,” several tactics that UX can leverage to foster cooperation within a company, bring a design approach, and take innovation efforts to the next level:

  1. Company-wide communication of the importance of innovation. UX should work hand-in-glove with top management to signal to the entire company the importance of innovation.
  2. Form cross-functional teams. UX should work with top management to set up cross-functional teams with the flexibility to operate outside the norms of the status quo. Such teams typically have executive support and buy-in to not just conceptualize but actually implement ideas.
  3. UX can nurture the generation of new ideas. This can be as simple as setting a corporate innovation objective and asking anyone in the organization to email ideas to a suggestion inbox.
  4. Build in the capacity for innovation. Challenge your UX team to systematically build in the time to innovate during the discovery phase of a design process.
  5. Move fast and be brave. As advocated by Timothy Clark, innovation requires a culture of intellectual bravery. UX must encourage challenging the status quo. This can be done through brainstorming, encouraging debate or advocating for truly new and differentiated experiences.
  6. Incentivize innovation. UX teams can also reward innovation by publicly recognizing individuals who have brought new products to market. This recognition could be a widely shared case study or awards for remarkable efforts. UX should also partner with the rest of the organization to incentivize team members in other ways, including bonuses, equity, promotions, time off or providing greater autonomy.
  7. Evangelize a culture where innovators have permission to fail. Employees must feel safe taking calculated risks.
  8. Set realistic ROI expectations. Being realistic about the time needed to see results can avoid potential disappointment that could otherwise cancel your innovation program.
  9. Help manage the innovation process. UX should solicit ideas, conduct discovery to refine ideas and work with other groups to decide which ideas move forward. As experts in product design, UX can collaborate with other departments to assess the expected business value and level of effort in order to better prioritize ideas.

Creating Synergy

In a post on All Things Insights, we explored the topics of CX and UX. Customer experience (CX) is the impression your customers have of your brand based on all of the interactions they’ve had with your business. User experience (UX) is specific to how people use and perceive your products. Why does the difference between these two experiences matter? Specifying between internal roles and responsibilities is key. The UX team needs to focus on enhancing product usability. Meanwhile, a positive brand experience is the significant mark of CX. Separate but integrated strategies could be the difference between success and failure on these two interrelated fronts.

Seth Adler of All Things Insights also recently had a chat with Shilpi Sinha, UX Researcher, Pandora Group, on UX Insights. Sinha further explores the role of UX on the team, and the importance of cross-organizational collaboration. There are myriad teams that have and can provide insight into a given subject. Without each account, there cannot be a full picture of what might be true. And still, when that full picture is provided, a well-constructed team must know how to harness the art of insights into cogent decision making.

Bringing It All Together

Both UX and CX can help marketers improve the customer experience by providing data-driven insights into how customers are engaging with innovation. Through UX research, marketers can identify user needs, behaviors, and preferences that inform the design of a product or service. By understanding these factors, they can tailor experiences to meet users’ expectations and create more meaningful connections with their customers. To focus on the UX component, according to ChatGPT, through research and feedback marketers and insights teams can support the customer in several ways.

  1. Increase usability: UX design can help customers easily navigate the product, understand how to use it, and complete tasks quickly and efficiently.
  2. Personalize the experience: UX designers can create personalized experiences tailored to different customer needs and preferences.
  3. Make it easy to find information: Good UX helps customers find what they’re looking for quickly by creating intuitive navigation systems that are easy to access from any page of the website or app.
  4. Build trust with customers: By designing an experience that is consistent, reliable, and transparent, businesses can build trust with their customers which leads to greater loyalty.
  5. Offer a unique design: A unique design will make your product stand out from competitors and give users something special that they won’t find anywhere else – making them more likely to stay engaged with your brand.

Change-Makers

Driving innovation can and should be a cross-team mission for any organization. UX designers and product designers are well positioned to take up this task. As Goran Paun discusses in the article, “How UX Design Can Inspire Innovation,” growth begins with the user. In other words, taking a design centered, user-first approach will benefit the experience, tap into the emotion of the user and help define your brand. As Paun notes, “Innovation and transformation cannot occur without the user and an organization willing to shift their focus on the experiences they wish to create for them.”

Video courtesy of AJ&Smart

Managing the Marketing of Innovation

By assessing and leveraging new marketing opportunities, concepts and research to better influence the outcomes of new product innovations, your innovation team will be better prepared for a successful launch into the market. This includes the implementation of product design or packaging, product placement or promotion and pricing. By speaking the same language, and interacting more effectively with the marketing and strategy professionals in your own firm, it will lead to nothing getting lost in translation during one of the most challenging times of a product or brand launch.

Remember Google Glass?

To achieve success, companies must put as much energy and investment into the marketing phase as they do the innovation phase of their projects. These strategies should make an impact regardless of the type of marketing innovation, whether it be radical, disruptive or incremental and whether an entirely new market must be created for the product being developed. Ultimately, an emphasis on marketing can also reduce the risk of launching a new product, which of course, can thereby reduce the risk of failure.

As Denise Lee Yohn eloquently puts it in an article in the Harvard Business Review, “Why Great Innovation Needs Great Marketing”: “But marketing is and should not be executed merely through tactical functions of acquiring and retaining customers, as many companies practice it today. The search, content, and loyalty campaigns that most managers call marketing these days are common downstream tactics for generating or maintaining awareness or repeat purchase. The full, business-growing power of the marketing function comes way upstream — from creating markets. Understanding people’s fundamental needs and drivers, identifying customers, and developing the entire go-to-market and usage ecosystem are the essential aspects of marketing — and the ones that the success of innovations, especially breakthrough ones, hinge upon. Marketers need to be included in development discussions earlier in the innovation process.”

Beyond the Bubble

As the community’s recent Innovation Spend & Trends Report indicated, innovation teams are not working in a bubble, or at least not as much as they used to. Are the days of working in a “silo” gone forever? As the All Things Innovation’s recent blog post explored, “Putting Together Your Innovation Team,” moving forward for agile organizations there is a much greater emphasis on cross-collaboration with other teams and departments in the company. From marketing and finance, to research and insights, to technology and IT services, innovation teams are expected to integrate, co-create and align with the business and its strategies on a broader level.

The approach to innovation talent has also evolved in this new globalized work world. While common themes have emerged, different organizations have chosen distinct paths. In this recent Innovation Talent Roundtable, the innovation community shared several thoughts on the search for innovation talent and fostering a culture of innovation.

Marketing Matters

A marketing specialist can play a crucial role in benefiting a new product innovation in several ways. We asked ChatGPT to outline a few advantages that marketing can offer. Overall, a marketing specialist brings valuable expertise and strategic thinking to the table, ensuring that the new product innovation is effectively positioned, promoted, and adopted by the target market.

  1. Market Research: A marketing specialist can conduct thorough market research to identify the target audience, assess market demand, and understand the competitive landscape. This helps in shaping the product’s features, positioning, and pricing strategy.
  2. Positioning and Branding: The specialist can develop a compelling brand positioning for the new product, identifying its unique selling propositions and creating a distinct brand identity. This helps differentiate the product from competitors and appeals to the target market.
  3. Targeted Marketing Strategy: By understanding the target audience’s preferences, behavior, and demographics, the marketing specialist can create a targeted marketing strategy. This includes selecting appropriate marketing channels and developing effective messaging to reach and engage potential customers.
  4. Product Launch Planning: The specialist can create a comprehensive launch plan, including setting goals, defining key performance indicators (KPIs), and determining the marketing mix. They can coordinate with cross-functional teams to ensure a successful product launch, including coordinating advertising, promotions, public relations, and sales efforts.
  5. Customer Acquisition and Conversion: Through effective marketing campaigns, the specialist can drive customer acquisition by generating awareness and interest in the new product. They can create compelling content, leverage social media platforms, optimize search engine visibility, and employ other marketing techniques to convert prospects into customers.
  6. Feedback and Iteration: The marketing specialist can gather feedback from customers and monitor market response to the new product. This feedback helps in identifying areas of improvement, refining marketing strategies, and making necessary adjustments to the product features or positioning.
  7. Competitive Analysis: The specialist can keep a close eye on competitors and monitor their marketing strategies, pricing, and product positioning. This helps identify opportunities and challenges, enabling the development of effective counter strategies to maintain a competitive advantage.
  8. Sales Support: The marketing specialist can collaborate with the sales team to develop sales collateral, training materials, and presentations that highlight the product’s unique features and benefits. This empowers the sales team to effectively communicate the value proposition to potential customers.

Marketing Matters

Today’s advanced innovations are not necessarily enough by themselves to drive a purchase or to generate enough interest to create a market. It’s only by identifying unmet needs, engaging with customers, developing the customer experience ecosystem and other key tactics under the marketing wing can an innovation take flight.

Yohn writes, “Innovation alone may be enough to initiate the adoption life cycle, but marketing remains the bridge necessary to cross the chasm between early adopters to the wider group of people who will form a viable, valuable customer base.” Whether you succeed or fail, marketing matters.

Video courtesy of Salesforce