Creating the New Business Innovation Mindset

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Shaping the Future of Business Innovation

Several key emerging trends are shaping the future of business innovation. By staying informed about these trends and adapting their strategies, businesses can position themselves for success in the years to come. We asked Gemini to identify what it sees as the most significant trends:

1. Artificial Intelligence (AI)

  • AI is rapidly transforming industries, automating tasks, and enhancing decision-making.
  • Businesses are leveraging AI for various purposes, including customer service, product development, and process optimization.
  • AI-powered tools and platforms are becoming more accessible, enabling businesses of all sizes to adopt AI solutions.

2. Sustainability and Eco-Friendly Practices

  • Consumers are increasingly prioritizing sustainability, driving businesses to adopt eco-friendly practices.
  • Companies are focusing on reducing their environmental footprint through initiatives like sustainable supply chains, waste reduction, and renewable energy.
  • Innovation in sustainable technologies and solutions is crucial for businesses to meet the growing demand for environmentally responsible products and services.

3. Remote Work and Hybrid Offices

  • The shift towards remote work and hybrid office models is reshaping the way businesses operate.
  • Companies are investing in technologies and infrastructure to support remote collaboration and communication.
  • This trend is driving innovation in areas like virtual meeting platforms, project management tools, and cybersecurity solutions.

4. Cybersecurity Measures

  • With increasing reliance on digital technologies, cybersecurity is becoming a critical concern for businesses.  
  • Companies are investing in robust cybersecurity measures to protect their data and systems from cyber threats.
  • Innovation in cybersecurity solutions is essential to stay ahead of evolving cyber risks and ensure business continuity. 

5. Quantum Computing

  • Quantum computing is an emerging technology with the potential to revolutionize various industries.
  • It can solve complex problems that are currently beyond the capabilities of classical computers.
  • Businesses are exploring the applications of quantum computing in areas like drug discovery, materials science, and financial modeling.

6. Metaverse

  • The metaverse is a virtual world where people can interact, socialize, and engage in various activities.
  • Businesses are exploring the potential of the metaverse for marketing, customer engagement, and creating immersive experiences. 
  • Innovation in virtual and augmented reality technologies is driving the development of the metaverse.

7. Blockchain Technology

  • Blockchain is a decentralized and secure technology that enables transparent and tamper-proof transactions.
  • It has applications in various industries, including finance, supply chain management, and healthcare.
  • Businesses are exploring the use of blockchain to enhance security, efficiency, and trust in their operations.

8. 5G and Beyond

  • The rollout of 5G networks and the development of 6G are ushering in a new era of connectivity.
  • These technologies offer faster speeds, lower latency, and increased capacity, enabling new applications and services.
  • Businesses are leveraging 5G and beyond to enhance their operations, improve customer experiences, and drive innovation.

9. Human-Centric AI

  • As AI becomes more prevalent, there is a growing focus on developing AI systems that are human-centric.
  • This involves ensuring that AI is used ethically, responsibly, and in a way that benefits humanity.
  • Businesses are prioritizing fairness, transparency, and accountability in their AI development and deployment.

10. Hyper-Personalization

  • Consumers are increasingly expecting personalized experiences from businesses.
  • Companies are leveraging data and AI to understand customer preferences and tailor their products and services accordingly.
  • Hyper-personalization is becoming a key differentiator for businesses in competitive markets.

AI’s Ascendance

Harsh Wardhan, Innovation Manager, Google, feels the future is already arriving, especially with the advancements being made in AI. That impact is already being felt across issues like workplace services and products, and using AI for efficiency and automation purposes.

Wardhan sees AI developing in a typical product cycle, with early adopters, leaders and laggards all in the mix as far as industries are concerned.

“AI has taken the center stage, and as much as I emphasize integrating AI into day-to-day operations, as well as integrating AI into their processes and methodologies, which I’m actively doing, I also put a caveat in there. It doesn’t mean that other areas of business innovation that have been helpful in the past should be put aside. That is the biggest concern I have right now when I see many businesses focused on implementing AI. I think there is a danger of ignoring the real user value that they could provide, with or without AI,” points out Wardhan.

While automating with AI is a quick win in today’s environment, he notes, every company is trying to create their AI models and all the other companies are trying to integrate AI.

“People are trying to upskill themselves,” he says. “Soon, what is going to happen is these areas will shape into a level playing field. There will be a time when everyone is equally skilled in AI tools, a little more, a little less. Just think of how the Internet disrupted how we live and how we work. Same thing will happen with AI. When that happens, when AI is leveled, it is democratized, then what will we have that is about adding value to the business? That is what business innovation will still be about. So we have to keep that in mind and not just go for quick wins.”

Sustainability as Strategy

Beyond quick wins, for Pete Dulcamara, founder and consultant for Pete Dulcamara & Associates, who is also widely known for his previous diverse research and development roles at Kimberly-Clark, in today’s environment it all comes down to human-centric innovation.

That’s not to say that AI is not a game-changer as he also sees, like Wardhan, how AI is rapidly transforming industries. “AI has not just changed the game; it has rewritten the rules. Organizations that embrace this transformation and align their mindset, culture, and environment with AI capabilities will lead the future of business innovation,” he says.

The mindset shift with AI should not be discounted or its value underestimated. “AI has shifted the innovation mindset from incremental improvements to transformative possibilities. Businesses are no longer constrained by traditional limits in data processing or decision-making. Instead, they are adopting an AI-first mindset, focusing on integrating AI across every aspect of their operations,” Dulcamara says.

That being said, from Dulcamara’s perspective he sees sustainability and the drive for human-centricity as key influencers of growth moving forward.

“Businesses are shifting from compliance-driven efforts to leveraging sustainability as a competitive advantage. Balancing short-term financial pressures with long-term ESG commitments is crucial. Those aligning innovation with sustainable practices stand to gain significant market differentiation,” says Dulcamara.

Next generation technologies will certainly play a key role in that growth over the next few decades, and that’s across the board from workplace services and digital transformation efforts to bigger picture themes of sustainability and clean energy.

Dulcamara notes, “Generative AI and quantum computing are emerging as transformative forces. Companies that experiment and scale these technologies strategically will gain first-mover advantages and shape industry standards.”

Fragmented economies may play a role in the future of business innovation as well. For instance, as Dulcamara points out, geopolitical shifts and supply chain disruptions are forcing businesses to rethink traditional innovation strategies. “Embracing localized, decentralized ecosystems can drive resilience and unlock diverse market opportunities,” he says.

“This is a pivotal moment for business innovation. Companies that address these challenges and leverage opportunities effectively can redefine their competitive positioning while creating meaningful, sustainable impact,” says Dulcamara. “The future promises a convergence of digital, sustainable, and workforce-centric trends, each driving new opportunities and challenges for businesses. Companies that invest in these areas with agility, purpose, and innovation will be best positioned to thrive in this evolving landscape.”

Video courtesy of London Business School

Moving Up the Innovation Curve

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Click here for the story, “Moving the Needle on Business Innovation.”

So what special skills and specialized capabilities put some innovation experts ahead of the pack? We asked two thought leaders with diverse backgrounds just what pushes them ahead of the curve and gives them an advantage in the innovation space. Both answers were quite different, one focused on sustainable human-centered innovation and the other focused on artificial intelligence. Yet if there is a common theme it’s that agile, flexible and adaptive approaches can help create the quick wins and incremental steps necessary to achieve innovation.

Sustaining a Human-Centric Approach

For Pete Dulcamara, founder and consultant for Pete Dulcamara & Associates, who is also widely known for his previous diverse research and development roles at Kimberly-Clark, in today’s environment it all comes down to human-centric innovation. This, he feels, is where the rubber meets the road in today’s focus on sustainability and innovation.

Dulcamara defines humanity-centric innovation as a transformative approach that positions sustainability as a driver of competitive advantage, bridging the gap between compliance and mission-driven impact.

To understand this more fully, Dulcamara points to the model of the Sustainability Maturity Curve:

  • Level 1: Compliance-Driven Sustainability focuses on adhering to regulations and maintaining a “license to operate.” At this stage, sustainability is often seen as a cost or obligation, with efforts aimed at minimizing risks rather than driving meaningful change. Communication is largely PR-oriented, and the focus is short-term profitability.
  • Level 2: Humanity-Centric Innovation shifts the perspective. Here, sustainability becomes a strategic tool to differentiate and innovate. This level emphasizes solutions that align business goals with human and environmental needs, creating long-term competitive advantage while ensuring profitability.
  • Level 3: Planet-First Approach is mission-driven, where the primary focus is on addressing global environmental challenges, often at the expense of profitability. Most NGOs operate at this level, prioritizing purpose above all else.

“The challenge is that Level 1 and Level 3 often speak different languages and struggle to find common ground. Businesses at Level 1 view sustainability as a cost center, while Level 3 organizations focus on purpose without financial constraints,” he says.

It is humanity-centric innovation (Level 2) that bridges this gap, Dulcamara believes. “It allows businesses to use sustainability as a competitive advantage, creating solutions that benefit people, the planet, and profitability simultaneously.”

This approach doesn’t just move companies up the curve, it enables them to operate across all three levels, observes Dulcamara, whereby one can meet compliance needs, innovate for differentiation, and contribute to the planet.

Dulcamara adds, “When you achieve humanity-centric innovation, you align purpose, profit, and sustainability into one cohesive strategy. This allows organizations to lead not only in the marketplace but also in making a meaningful difference for humanity and the environment. This ability to connect the dots between levels, unlock value at every stage, and drive simultaneous impact is where I believe I stand ahead of the pack. It’s a philosophy that transforms sustainability from an obligation into an unparalleled opportunity for growth, innovation, and leadership.”

Streamlining Processes with AI

While Dulcamara takes a long-term sustainable approach to innovation, for Harsh Wardhan, Innovation Manager, Google, taking advantage of AI is the name of the game in the current innovation atmosphere.

“Anybody today who is actively integrating AI into their work stream to make themselves faster, they are the ones who are ahead of the pack. They are making their day-to-day work faster. There is less time consumption, more efficient results in a smaller amount of time, more access, more use of information that is grounded in real data. That’s the first way of making your day-to-day operations better,” he says.

“The other aspect of AI is it’s going to change the game in business innovation and a lot of other areas of the business as well as how the world works essentially,” says Wardhan. “People who are integrating AI into their workforce today are going to be the ones who are ahead of the pack tomorrow. When we talk about any technology, there’s a curve of earlier adopters, those in the middle of their curve and then the laggards. Only adopters in the AI game would be ahead of the pack because they’re not only using their network, but they would also know how to function in the world better, where everything is enhanced by AI.”

Artificial intelligence is rapidly transforming many functions of the innovation discipline. Streamlining processes are just the start. Still, one must be careful not to rely too fully on AI.

“AI has taken the center stage, and as much as I emphasize people integrating AI into their day-to-day operations, as well as integrating AI into their processes and methodologies, this is only one aspect of the innovation tripod,” cautions Wardhan.

AI may firmly be in the technology cog of the three-legged stool, but one can’t ignore the other aspects of business innovation. Don’t forget about the user—or the consumer of the product or service, either.

Wardhan adds, “That is the biggest concern I have right now when I see many businesses being focused on implementing AI. I think there is a danger of ignoring the real user value that they could provide, with or without AI. Just for example, integrating a chatbot on your company or your product website—it might be helpful, but it might not be the best way to provide value to your users.”

“My advice would be don’t look at just the quick wins of integrating AI, in your products and services, but as real business innovators, don’t forget about the other two legs of desirability and viability that is delivering the right value to your users and making sure that it also adds value to the business. Because AI is, again, one leg of that innovation framework, and that is technology,” he says.

Video courtesy of TEDx Talks

FEI25 to Hold Collective Intelligence Startup Competition

A honeycomb pattern of hexagons in a variety of colors.

Check out the details of this year’s Collective Intelligence Startup Competition.

Why Collective Intelligence?

Collective intelligence arises from the fusion of human and machine intelligence for results neither could achieve alone. FEI 2025 showcases seed-stage startups that leverage uniquely human tacit knowledge within their AI solutions. By understanding how these new AI offerings are shaped by human experience and intuition, organizations can unlock the power of collective intelligence.

Startups are judged on:

  • Prominent Feature of Human Intelligence as an input
  • Impact and relevance to cross-industry corporates
  • Level of dependence on external ecosystem
  • Disruptiveness/Degree of Difficulty
  • Degree of technical feasibility
  • Customer Desire-ability
  • Business viability

The judges for the 2025 FEI Seed Stage Startup Competition include Keith Crossland, CEO & Co-Founder at Carbon Negative Solutions; Carley Hart, Director of Corporate Partnerships, Runway Startups at Cornell Tech; Andre Magni, Data & AI Leader at Microsoft; Arvind Balasundaram, Executive Director, Commercial Insights & Analytics at Regeneron Pharmaceuticals; Leslie Shannon, Head of Trend and Innovation Scouting at Nokia; Rachel Levy, AI Innovation Engineering Lead at Google; and June Dershewitz, Co-Founder at InvestInData.

FEI 2025 will be held May 19-21, 2025, Omni Boston Hotel at the Seaport Boston. Click here for more registration information.

The Role of Collective Intelligence

According to Atlan’s resource on collective intelligence, “Collective Intelligence: Concepts and Reasons to Choose It,” collective intelligence is the shared or group intelligence that emerges when people work together, often with the help of technology, to solve complex problems. It is an emergent property, meaning it arises from the synergies among individuals’ activities but is not predictable from the individual capabilities alone.

This concept brings people and technology together to solve complex problems, that no one entity could solve but perhaps a community of like-minded individuals can with support, creativity, and technology. Diversity, decentralization and aggregation of information are also further hallmarks of the collaboration and communication associated with collective intelligence.

Below are some prominent types of collective intelligence, according to Atlan:

  • Human-based collective intelligence: The gathering and synthesis of knowledge, expertise, and resources from multiple human participants to create a form of intelligence greater than any individual could produce alone. Think crowdsourcing and open source innovation.
  • Computer-based collective intelligence: The convergence of computational power and large-scale data analysis to produce intelligence or problem-solving capabilities that are beyond the scope of individual agents, human or machine. Think artificial intelligence and big data analytics.
  • Hybrid systems: Refers to the integrative frameworks that combine both human and computer-based intelligence to achieve superior problem-solving capabilities, creativity, and decision-making. These systems leverage the complementary strengths of human intuition, emotional intelligence, and creativity with the speed, efficiency, and computational power of artificial intelligence. Think human-in-the-loop systems or AI-augmented human networks.
  • Natural collective intelligence: Simple rules, complex behaviors: In nature, collective intelligence often arises from individuals following a set of simple rules. For instance, a flock of birds can display complex aerobatic maneuvers through basic behaviors like maintaining a fixed distance from your nearest neighbor.

Some key advantages highlight the collective intelligence method, namely the diversity of perspectives that come with this concept. Benefits may include broader insight, and enhanced problem-solving capacity, improved decision making, adaptive learning, increased stakeholder engagement, and scalable solutions

Atlan notes, “In essence, collective intelligence is not just about accumulating more information; it’s about integrating diverse skills, experiences, and viewpoints to create more effective, inclusive, and adaptable solutions. As challenges become more complex and interconnected, the need for collective intelligence becomes increasingly apparent.”

Creating A More Sustainable Future

Check out last year’s coverage of the first annual FEI Startup Competition. In “The Path to a Sustainable Future,” All Things Innovation caught up with Keith Crossland, CEO and Co-Founder of Carbon Negative Solutions. Crossland’s company was the grand prize winner of the FEI Net Zero Emissions Competition at the year’s innovation event, FEI 2024, held in June.

In “Innovation’s Role in the Race to Net Zero,” All Things Innovation explored the theme of net zero emissions further, and profiled all of the finalists from the previous edition of the competition. As consumers, we are all living with climate change as a growing reality—and that reality is impacting our lives on a daily basis. We have heard of terms like the Paris Agreement, there is a growing focus on the eco-friendly design of products and services, and sustainability-minded programs are on the rise, from recycling to wind turbine power to more widespread emphasis on electric vehicles, for example. There is also a focus on the mission of Net Zero, or Net Zero emissions. Just what does Net Zero mean? And how is it connected to the world of innovation?

The Power of Many

As we’ve briefly explored the breadth and depth of collective intelligence, it’s clear that this “paradigm holds tremendous potential for transforming how we approach problem-solving, decision-making, and innovation,” writes Atlan.

Atlan observes, “In a world that is increasingly complex and interconnected, the need for collective intelligence is more pressing than ever. As we face monumental challenges like climate change, political polarization, and global health crises, the capability to harness the wisdom and skills of diverse groups—both human and machine—becomes not just beneficial but essential.”

From its use in business and management, science and research, social systems and governance, healthcare, technology and data science, the rise of collective thinking is growing exponentially as AI continues to advance at a rapid pace. Collective intelligence’s power of collaboration is shaping today’s society in myriad ways. Join FEI25 to explore this year’s Collective Intelligence Startup Competition.

FEI 2025 will be held May 19-21, 2025, Omni Boston Hotel at the Seaport Boston. Click here for more registration information.

Bringing the Rogue Mindset to FEI25

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Defining the Rogue Mindset

The “Rogue Mindset” refers to a proactive and unconventional approach to problem-solving and innovation, characterized by a willingness to challenge the status quo, think outside traditional frameworks, and take bold, calculated risks to achieve breakthrough results.

The approach currently defines Rogue as:

R – Resilience and Adaptability

O – Openness to Unconventional Ideas

G – Grit and Determination

U – Unwavering Curiosity

E – Empowerment and Communication

Actioning the Rogue Mindset

Conceived of by Tammy Butterworth at last year’s FEI: Front End of Innovation conference, the Rogue Mindset is a new project that champions an unconventional approach to decision-making and innovation. It emphasizes resilience, openness to unconventional ideas, grit, unwavering curiosity, empowerment and communication.

The keynote presentation, “Actioning the Rogue Mindset: Aligning Innovation with Business Strategy,” aims to kick off FEI 2025 by examining how innovators and changemakers have been inspired and empowered to embrace the Rogue Mindset.

Join Tammy Butterworth, Product Innovation Director at Welch’s; Brigette Wolf, CMO at MyMochi; and Craig Dubitsky, founder and CEO at happy as they look at practical insights and tools for cultivating the Rogue Mindset; the fostering of a global dialogue on the importance of unconventional thinking; the building of a community of innovators who embody the Rogue Mindset; and the alignment of innovation with business strategy by turning ‘outside’ ideas into ‘inside’ strategy.

FEI 2025 will be held May 19-21, 2025, Omni Boston Hotel at the Seaport Boston. Click here for more registration information.

Setting the Stage with Rogue Mindset Roundtables

Following the keynote session, the innovation community at FEI 2025 will hold a series of moderated Rogue Mindset Roundtables. Under the theme, “Bringing Outside of the Box Thinking, Inside the Box,” the entire community will explore the concept as it applies to the innovation mindset and culture.

In a Chatham House Rules environment, these roundtables put the Rogue Mindset Approach to work. After reviewing the approach on the app in advance of the event, you and your interdisciplinary colleagues share thoughts, use cases and case studies of the current state of the applied Rogue Mindset.

FEI 2025 will be held May 19-21, 2025, Omni Boston Hotel at the Seaport Boston. Click here for more registration information.

A Clarion Call to Go Rogue

The “Rogue Mindset” is not merely a catchphrase but a clarion call to break free from the shackles of conventionality. It embodies the spirit of resilience, openness, grit, unwavering curiosity, and empowerment. This mindset champions the bold and the brave, those willing to tread uncharted waters and challenge the status quo with a fearless heart. The innovative power of the Rogue Mindset, indeed, can transform industries, drive technological advancements, and address the pressing issues of our time.

Looking to participate in the Rogue Mindset Report? Click here to “Go Rogue”

Moving the Needle on Business Innovation

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The Foundations of Business Innovation

For Harsh Wardhan, Innovation Manager, Google, business innovation can mean many types of initiatives when generating new ideas and products. Yet in getting back to basics, he points to the adage of the three-legged stool.

“If you think about the broader innovation, in any organization, there are three important aspects to it,” says Wardhan. “One is your desirability, which is what value are you creating for your customers and your users. Desirability is usually led by design. The other area would be technology, which is centered around how do you build things? What technology goes into it? The third area is related to viability. Is it viable in the market?”

In today’s business environment, Wardhan suggests that sustainability could potentially be another leg added to the stool. The DVF framework (desirability, viability, feasibility) is a core standard in business innovation, but it is important to cross check whether you are innovating correctly or not. If any one leg is broken, then the innovation is going to fail.

What other best practices can lead to successful business innovation?

“In my experience, there are many reasons why an innovation can fail, and I have found these factors to be critical for success,” says Pete Dulcamara, founder and consultant for Pete Dulcamara & Associates, who is also widely known for his previous research and development roles at Kimberly-Clark.

Dulcamara points to having a clear value proposition for the customer; a business model where all partners in the value chain have an acceptable return on investment; a go-to-market strategy that can be executed and maintained through existing and new channels; a pipeline of innovation that creates successive waves of anticipation in the customer; and technology that gives the customer (and business stakeholders) a reason to believe at a price they can afford.

In his research and development experiences with Kimberly-Clark, Dulcamara agrees that further emphasizing sustainability is an important facet in today’s business innovation environment.

“My experience demonstrated the power of aligning innovation with sustainability, not just as a response to external pressures but as a driver of long-term competitive advantage and environmental stewardship,” says Dulcamara. “It’s a story that underscores the impact of science, collaboration, and a commitment to doing what’s right for people, the planet, and prosperity.”

Creating Collaborative Stakeholder Engagement

For those in the innovation community, best practices in business innovation start with a key focus on collaborative stakeholder engagement. This is particularly important for the innovation professional, whether they be experienced or a younger associate.

Wardhan notes, “In my experience, in the projects that have found the most success, be it internal or external, whether it is working with the client or whether it is out launching any product, it has been successful only because all hands were on board.”

He adds, “In terms of cross collaborative stakeholder engagement, you have to work with the people who are making it. You have to work with the people who are identifying value. You have to work with people who are spreading the word, the marketing, and you have to work with the people who are selling it at the end. And this cross-collaborative stakeholder engagement is not limited to only interna areas of the company, but also goes out if you could collaborate with your customers, if you could collaborate with any platform that might connect you with your customer.”

Developing a communication strategy is important to break out of the outmoded corporate silo mentality and develop more cross-collaborative, interdisciplinary modes of business innovation.

“For example, I work in design,” says Wardhan. “There might be some people who are working in product engineering or people who are specifically working in the finance area of the business. Each of them in their teams have their own jargons. Each of them have their own way of communicating value. If we are not understanding the language, we’re not understanding making it easier for the other stakeholder to understand the value that we are talking about. There won’t be any connection and there won’t be the knowledge transfer that needs to happen.”

Moving the Innovation Journey Forward

Developing these skills may seem a tall order for an entry-level associate, yet it is the incremental steps that can lead to success, in both business innovation and your own career.

“Own your career, build a personal brand, create significant value, expand skills and networks, implement ideas with measurable outcomes, and follow a strategic growth plan,” advises Dulcamara.

For entry-level or intermediate innovation associates, Dulcamara’s advice draws from the principles of career growth and innovation strategy highlighted from his long career. Here’s some of his suggestions:

  1. Be the CEO of Your Career: Approach your role with a mindset of ownership and accountability. Treat your contributions as a portfolio of value you’re building, aiming to consistently add more value than you consume in the organization.
  1. Build “Brand You”: Focus on developing a personal brand centered on reliability, creativity, and impact. Communicate your results effectively, showcasing how your work drives innovation and aligns with organizational goals.
  2. Create Superior Value: Seek opportunities to create 10x, 100x, or even 1000x the compensation of your role. Look for problems to solve, gaps to fill, and ways to innovate beyond expectations.
  3. Expand Capabilities and Networks: Invest in learning new skills, gaining certifications, and building relationships within and beyond your organization. These networks and capabilities will help you identify opportunities and unlock collaboration potential.
  4. Turn Vision into Action: Translate ideas into tangible results. Focus on implementing innovative ideas with measurable outcomes, and consistently communicate the impact of your efforts.

“Remember, innovation in your career is as much about mindset and initiative as it is about tools and methodologies. By owning your career and proactively creating value, you set yourself apart as a key contributor to your organization’s innovation journey,” says Dulcamara.

Wardhan also suggests that those new to innovation should always strive to keep their goals in mind, as well as keep that stakeholder engagement front and center.

“What are they trying to achieve in their job?” asks Wardhan. “They are trying to move a needle. Move a needle in the business, create some impact, create some value for the business because that is going to provide value to their career as well. It’s mutually beneficial. For that, stakeholder engagement and management are so important.”

Video courtesy of Mind Tools Videos

Defining Business Innovation

Office building filled with dark and lit windows at night.

Types of Business Innovation

Business innovation can be categorized into several types, each with its own unique approach:

  • Product Innovation: This involves creating new products or services that meet unmet customer needs or improve existing offerings. For example, introducing a new smartphone with advanced features or developing a sustainable product line.
  • Process Innovation: This focuses on improving the efficiency and effectiveness of business processes. It involves finding new ways to produce goods or deliver services, such as automating tasks, streamlining workflows, or adopting new technologies.
  • Business Model Innovation: This involves creating new business models that disrupt existing industries or create new markets. Examples include subscription-based models, freemium models, and platform-based business models.
  • Social Innovation: This focuses on addressing social and environmental challenges through innovative solutions. It involves developing products, services, or business models that have a positive impact on society.

Benefits of Business Innovation

Innovation professionals must navigate the challenges and leverage the benefits of business model innovation to drive sustainable growth and success.

  • Competitive Advantage: Innovation can help businesses differentiate themselves from competitors and gain a market edge.
  • Increased Revenue: New products, services, and processes can lead to increased revenue and profitability.
  • Improved Efficiency: Innovative processes can streamline operations and reduce costs.
  • Enhanced Customer Experience: Innovation can lead to better products and services, resulting in improved customer satisfaction and loyalty.
  • Organizational Agility: Innovative organizations are better equipped to adapt to change and seize new opportunities.
  • Social Impact: Innovative business models can have a positive impact on society by addressing social and environmental challenges.

Challenges of Business Innovation

  • Resistance to Change: Introducing a new business model often requires significant changes to organizational structures, processes, and culture. Overcoming resistance from employees and stakeholders can be a major challenge.
  • Resource Constraints: Implementing a new business model can be resource-intensive, requiring significant investments in technology, marketing, and talent.
  • Market Uncertainty: It can be difficult to predict the market’s response to a new business model, especially in uncertain economic conditions.
  • Competitive Pressure: Competitors may quickly imitate successful business models, reducing the first-mover advantage.
  • Risk of Failure: Business model innovation is inherently risky, and there is always the possibility of failure.

Applications of Business Innovation

Business innovation can be applied to a wide range of industries and sectors. Some common applications include:

  • Product Development: Creating new products or services that meet unmet customer needs.
  • Process Improvement: Streamlining operations and reducing costs.
  • Business Model Transformation: Adopting new business models to capture new markets.
  • Social Impact: Developing innovative solutions to address social and environmental problems.
  • Digital Transformation: Leveraging digital technologies to create new products, services, and business models.

Key Strategies for Successful Business Innovation

  • Foster a Culture of Innovation: Encourage creativity, risk-taking, and experimentation.
  • Empower Employees: Give employees the autonomy and resources to innovate.
  • Prioritize Customer Needs: Understand customer needs and preferences to develop innovative solutions.
  • Embrace Failure: Learn from failures and use them as opportunities for growth.
  • Build Strong Partnerships: Collaborate with other organizations to accelerate innovation.
  • Invest in Research and Development: Allocate resources to research and development to drive innovation.
  • Embrace Emerging Technologies: Stay up-to-date on the latest technological trends and explore their potential applications.

More Resources on Business Innovation

  • “Innovation Resources,” from IDEO. Grow your innovation capabilities by applying creative problem solving to different aspects of your organization and moving people toward new ways of working.

Top Innovation Podcasts

  • “Innovation podcasts,” from Board of Innovation. BOI has hand-picked their favorite thought-provoking podcasts that focus on innovation to keep you stimulated in your downtime.
  • “HBR IdeaCast,” from Harvard Business Review. A weekly podcast featuring the leading thinkers in business and management.

Video Resources on Business Innovation

  • “Ep 2: Business Innovation | Innovation and Entrepreneurship | SkillUp,” from Swiss Learning Exchange. Is innovation important for businesses to either find success or to remain competitive?
  • “Business Model Innovation,” from HSGUniStGallen. The fourth part of a series from University of St. Gallen shows how innovations come into being and what myths are associated with this process.

More On This Topic from All Things Innovation

Business Innovation

One of the featured categories on All Things Innovation, Business Innovation features a range of helpful information on current business trends, innovative business models, and more for the innovation professional. This includes business innovation ideas, innovation ecosystems, future of work, growth innovation, supply chain innovation, finance innovation, and more. This area further looks at business transformation, strategic innovation, stakeholders, collaboration, and other foundational knowledge and business innovation ideas for the innovation expert and novice alike.

Encouraging Business Innovation to Thrive

By embracing innovation, businesses can thrive in today’s rapidly changing marketplace. Innovation empowers organizations to adapt to evolving consumer preferences, disruptive technologies, and shifting market dynamics. Through innovation, businesses can develop new products and services, improve operational efficiency, and enhance customer experiences. By fostering a culture of innovation, companies can encourage creativity, risk-taking, and collaboration, leading to breakthrough ideas and sustainable growth. Ultimately, innovation is the key to unlocking new opportunities, staying ahead of the competition, and ensuring long-term success.

Editor’s Note on Sources: The content generated is based on a combination of Gemini’s knowledge and training, along with information it’s been trained on from a massive dataset of text and code. This includes academic papers, articles, books, and other reliable sources on business innovation.

Video courtesy of Growth Manifesto Podcast

Strengthening Product Concept Testing

Coffee cup and plate filled with coffee beans.

At TMRE 2024, Ben Harknett, CEO at Cambri, presented the session, “Are KPIs & Benchmarks Really Doing a Good Job of Predicting Product Concept Strength?”

Harknett asks, “Are benchmarks and KPIs as good as we would like to think they are at predicting product success when we think about concept testing?” Using Cambri’s service delivers more accuracy in predicting how strong a concept is in the market, he notes.

He says, “We’re a platform at our core, that allows you to test iteratively along your innovation process. What are we trying to do when evaluating concepts? Is this concept strong? Maybe you’re looking at a bunch of different concepts and you’re trying to pick the strongest or the top 20%. And then you’re trying to figure out how can we improve those concepts, which levers to pull to have the biggest impact on those concepts moving forward.”

“Traditionally, that’s been done looking at traditional KPIs, the likes of willingness to buy and uniqueness, looking at them versus category benchmarks, and then looking through a bunch of verbatims and open ends, and you as the researcher trying to join those dots and trying to figure it out: Which one’s the strongest and how do we improve them?” Harknett observes.

He continues, “How do we actually define the notion of a strong concept? Today that is largely defined as how did this concept test versus other concepts? But that doesn’t necessarily mean it’s going to perform well. The second problem that we observe is there’s often contradicting KPI’s. What if the KPIs are really strong, but the open ends are pretty weak? The third piece is, how do we actually improve those concepts? Which levers do we pull? All of this requires a ton of manual analysis and intuition, and certainly the time element is something that as researchers we have none of.”

Leveraging Artificial Intelligence

“At Cambri, we run concept testing with real respondents. We are interpreting that data to help make sense of it and help you make better decisions,” says Harknett. “Where we start to go off script a little bit is our ability to make sense of the open ends. This is something that we’ve been developing for many years—our proprietary natural language processing model. We’re able to make sense of and understand all of the open-ended answers that come with a survey response. We’re able to understand those conditions. Then, of course, we need to train that AI model. We need to tell this model, what does good look like? The output of that is a score that tells you if this product is going to perform well in the market or not.”

With its Launch AI performance tool, Cambri can identify the specific strengths and weaknesses of the product and concept testing.

He adds, “Importantly then, a set of drivers also tells you what is driving that score up or down? Is this product performing well because of the design of the packaging, or is it performing well because of the brand strength? Or what is perhaps pulling down that score, so that you have clear ideas of which levers to pull? Launch AI gives you a clear answer, this is something we should work on. We’re close, but we just need to iterate on these next few things, Or actually, we should just scrap it altogether.”

Watch the video for the full session, including a related case study, at TMRE 2024 as Cambri’s Harknett discusses the company’s product concept testing service.