The reason most companies don’t get the ROI they want is because they don’t have a business innovation framework that distinguishes between the different types of innovations and the outcomes they are designed to deliver. As such, they tend to manage all innovation projects with the same processes, tools and metrics which is a recipe for failure. A note here: ROI is not always the best early metric to measure the performance of a new innovation or minimum viable product or service. Early adopters are more than willing to participate in and contribute to iterative discussions that enhance your offer and increase its value and benefit.
Building a new business innovation PMO
In working with different companies over the past several years to help them hone their business innovation skills, I’ve seen a series of best practices that increase the odds of winning the business innovation wars.
- You need to gain cross enterprise alignment and support for a digital first business growth strategy and implementation plan.
- The competitive landscape is changing so fast that anything less than an all-in approach will likely fail.
- You need to create a culture of continuous learning and experimentation and be willing to fail fast and learn fast.
- You need to excel at segmenting competing innovation options into three playbooks and manage each type differently to maximize their potential ROI.
- You need to be able to leverage data and analytics to identify and create entirely new customer services and experiences.
- You need to be able to construct and orchestrate business partner networks & ecosystems that leverage the competitive benefits of assets you don’t own and directly control.
- You need to have the resolve to sacrifice short term revenue and earnings in order to create sustainable long term competitive advantage.