Staying relevant! The biggest challenge we all face – staying relevant within our market. Relevance to your customers is what keeps you in business.
With the world changing as rapidly as it does today, mainly due to the profound influence of technology on our lives, the expectations of the consumer is changing at pace. They have access to an increasing array of choice, not just in how they spend their money but also in how they are communicating and interacting – change fueled by a digital revolution. The last thing that anyone can afford, in this fast paced race, is losing relevance – that will cost us customers or worse…
Is what you are selling today, adaptable to the continuous changing ecosystems? Does your strategy reflect that agility? How can you ensure that your business stays relevant in the digital age? We have all heard about digital transformation as a necessity, but even then, how can you ensure that you are evolving as fast as your customers and stay relevant within your market?
Business, who has a culture of continuous evolvement, aligning their products and services with the digital driven customer, is the business that stays relevant. This is the kind of business that does not require a digital transformation to realign with customer’s demand to secure their future. A customer centric focus and a culture of continuous evolution within the business, throughout the business value chain, is what assure relevance. Looking at these businesses, their ability/agility to get innovation into production, rapidly, is a core success criterion.
Not having a strategy to stay relevant is a very high and real risk to business. Traditionally we deal with risk by asking “Why?”. For continuous improvement/evolution and agility, we should instead be asking “Why not?” and by that, introduce opportunities for pilots, prototypes, experimentation and proof of concepts. Use your people as an incubator for innovation.
Sure, you have a R&D team and you are continuously finding new ways to deliver your value proposition – but getting your innovative ideas into production is cumbersome, just to discover that it is already aged and possibly absolute in a year a two. R&D is expensive and time consuming and there are no guarantees that your effort will result in a working product or desired service. Just because you have the ability to build something, does not mean that you have to build something. Focusing the scares and expensive resources on the right initiatives makes sense, right! This is why many firms are shifting from a project-minded (short term) approach to a longer-term product-minded investment and management approach.
So, how do you remain customer centric, use your staff as incubators of innovation, select the ideas that will improve your market relevance and then rapidly develop those ideas into revenue earners while shifting to a product-minded investment approach?
You could combine Design Thinking with Lean Startup and Agile Delivery…
In 2016, I was attending the Gartner Symposium where Gartner brought these concepts together very well in this illustration:
Instead of selecting and religiously follow one specific delivery methodology, use the best of multiple worlds to get the optimum output through the innovation lifecycle.
Using Design Thinking (Empathise >> Define >> Ideate >> Prototype) puts the customer at the core of customer centric innovation and product/service development. Starting by empathising with the customers and defining their most pressing issues and problems, before coming up with a variety of ideas to potentially solve the problems. Each idea is considered before developing a prototype. This dramatically reduces the risk of innovation initiatives, by engaging with what people (the customer) really need and want before actually investing further in development.
Lean Startup focuses on getting a product-market fit by moving a Prototype or MVP (minimum viable product) through a cycle of Build >> Measure >> Learn. This ensures a thorough knowledge of the user of the product/service is gained through an active and measureable engagement with the customer. Customer experience and feedback is captured and used to learn and adapt resulting in an improved MVP, better aligned to the target market, after every cycle.
Finally Agile Scrum, continuing the customer centric theme, involves multiple stakeholders, especially users (customers), in every step in maturing the MVP to a product they will be happy to use. This engagement enhances transparency, which in turn grow the trust between the business (Development Team) and the customer (user) who are vested in the product’s/service’s success. Through an iterative approach, new features and changes can be delivered in an accurate and predictable timeline quickly and according to stakeholder’s priorities. This continuous product/service evolvement, with full stakeholder engagement, builds brand loyalty and ensures market relevance.
Looking at a typical innovation lifecycle you could identify three distinct stages: Idea, Prototype/MVP (Minimal Viable Product) and Product. Each of these innovation stages are complimented by some key value, gained from one of the three delivery methodologies:
All of these methodologies, engage the stakeholders (especially the customer & user) in continuous feedback loops, measuring progress and capturing feedback to adapt and continuously improve, so maximum value creation is achieved.
No one wants to spend a lot of resource and time delivering something that adds little value and create no impact. Using this innovation methodology and associated tools, you will be building better products and service, in the eye of the user – and that’s what matters. You’ll be actively building and unlocking the potential of you’re A-team, to be involved in creating impact and value while cultivating a culture of continuous improvement.
The same methodology works very well for digital transformation programmes.
At the very least, you should be experimenting with these delivery approaches to find the sweat spot methodology for you.
Experiment to stay relevant!
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4 thoughts on “How to Innovate to stay Relevant”
How do you ensure that people do not fall back to Waterfall after looking at this schema?