How to address the gap between business strategy and innovation execution

HOW DO YOU CREATE AN ACTIONABLE INNOVATION PIPELINE AND A SERIES OF TANGIBLE PROJECTS?

We've had lots of requests for help from clients on this topic recently.

We see several factors driving this need:

Big businesses struggle to translate business goals into what it means for innovation.

Many strategic planning methods identify opportunities in adjacent sectors or strategic shifts you need to make without giving you clarity of what it practically means for innovation teams. Bubble charts and 2x2 matrices look great in powerpoint presentations, but practically what does it mean for the innovation team?

This leaves people still scratching their heads: 'What useful guidance and direction do we now give to our innovation squads?'

Clarity is essential whether it be for the big strategic moves or to revitalise the nucleus of your core business.

Having worked on countless of these projects, we have a suite of tools and questions that solve these challenges.

Here are just a few of these questions that might help you improve your innovation outcomes.

WHAT ARE THE CRITICAL INNOVATION PLATFORMS, WHICH ALIGN WITH OUR BUSINESS STRATEGY AND GOALS?

Think of innovation platforms as the parents of practical ideas. They lead to a coherent pipeline of new concepts that create scale.

There is no magic formula for how you define innovation platforms - it's what works for you that counts. An innovation platform might be product-centric, e.g. deodorants; determined by consumer need, e.g. indulgence; or a shift in customer experience, e.g. a new digital services. Crucially platforms create the focus for ideas that link back to your business strategy and business objectives. For instance, the team may see indulgence as a key trend which is bringing new users into a category.

Clearly defined innovation platforms that connect back to your business goals, are the springboard for a series of tangible concepts which allow you to achieve scale. A logical innovation framework also facilitates stakeholder buy-in (internal cross-functional teams, partners, retail customers). A commitment from stakeholders improves your ability to execute with pace.

Ensure you create clearly articulated innovation platforms as part of your strategic planning process.

HOW DOES OUR CURRENT PIPELINE OVERLAY AGAINST THESE INNOVATION PLATFORMS?

This simple question helps your team identify the gaps in your current portfolio and where to channel your efforts to devise concepts for new products, services, or renovate the existing business.

HOW RELIABLE ARE OUR INSIGHTS?

With a clear framework and priorities in place, the team can start to question their customer understanding. What do we know about customer needs that we can act on NOW? Do we have gaps in consumer understanding that we need to fill before we spend time on ideation?

For instance, with clients, we typically synthesise available market research into opportunities for new ideas and spot gaps in understanding that need to be filled at the start of any project.

This baseline understanding pinpoints the quick wins but highlights the more intriguing unanswered questions ('Why do people behave this way? What unarticulated frustrations do people have in this category?).

Without a distillation of the consumer 'jobs to be done' the team will struggle. What problems, tensions and disappointments need solving? What actions do you need to take to address these unmet needs? Don't jump to ideas until you have interrogated your customers' needs. If you do, you'll create concepts based on weak foundations — the result: ideas which lack relevance and distinctiveness.

HOW DOES OUR TECHNICAL CAPABILITY ALIGN WITH THESE NEW PLATFORMS?

Can you act now, or do you need to develop new technologies, create external partnerships, acquire new IP? To renovate the core business may be achievable now, but to enter a new adjacent sector or create novel customer experiences may require new technologies or expertise to be feasible (product, format, CRM infrastructure, channel access).

Understanding technical constraints and feasibility - now and in the future - will determine what limitations you have to work within. This will impact how, where and when you allocate resources.

Innovation projects are the stepping stones to growth

HOW IS OUR PORTFOLIO OF PRODUCTS GOING TO CHANGE OVER TIME?

There is no point in focusing on the future if the core business is not robust. However, you may also need to take specific actions now to move into a new sector in 24 months. Painting a picture of how the portfolio evolves will shape meaningful discussions around priorities, and what foundational initiatives are required to unlock future ideas. This assessment will help create a balanced portfolio of projects and stepping stones to more innovative customer solutions.

HOW DOES OUR BRAND STRATEGY HELP CREATE UNIQUE EXPERIENCES?

What is the brand's unique point of view? Often, there are very few, truly original ideas. Its how you execute the idea that makes the difference. We often cite Brewdog as an excellent example of a challenger brand that has made inroads into the beer market, up against established brewing giants. How have they done this? The Brewdog team have a unique stance on how to develop products: the positioning, tone of voice and business model. Likewise, Virgin Atlantic has a distinctive take on rail and air travel that carves out differentiated customer experiences from their competitors.

This approach to innovation requires creativity and imagination.

As you develop your plans, ask yourself 'how do we create an unmatched brand experience?'; 'What are the implications for how we design ideas to be unique and relevant?'

LEARN BY DOING

Moltke - the famous Prussian general - said that no plan survives first contact with the enemy. It is the job of the generals to set the overall strategy, provide clear direction, then empower the troops to use initiative and judgement to respond to shifting circumstances on the ground as they unfold.

The same principles apply to innovation. Put your frameworks and priorities in place, and then allow project teams to use agile methods to prototype and experiment with different solutions. The frameworks ensure ideas link back to the business strategy and goals, but shouldn't inhibit ingenuity.

IN SUMMARY

Innovation frameworks help you translate business strategy into innovation actions. By addressing the questions of how to deliver against consumer and business needs in unique and distinctive ways, you will start to gain momentum. A flexible approach helps teams adjust their plans through the practical application of ideas during beta testing and pilot studies.

Need help to bring the gap between strategy and action? Get in contact.