Merging Strategy and Innovation
Continuous Foresight: A Strategic Side Benefit of Innovation Performance Management
At Hypershift, we are delivering a new, systematic and data-driven approach to innovation that rests on the premise ...
At Hypershift, we are delivering a new, systematic and data-driven approach to innovation that rests on the premise that you need to test a lot of business model ideas in a lightweight but structured way to learn--from customers--which new ideas are the ones that merit further investment. This is a different approach than incubator strategies, which focus on the selection of a few key ideas to support with startup “best practices,” or design-led strategies, which are centered around doing the best job possible with discrete ideas.
One byproduct of our approach to this operational model that we call “Innovation Performance Management” is the data platform it delivers to decisions of strategy. By adopting it, companies end up with a continuous stream of input from the market as to how their many ideas map to the current preferences and needs of current or prospective customers. This is particularly true when the business models that are tested through Innovation Performance Management are developed with 3rd parties--that may bring expertise from adjacent markets--in “Open Innovation” approaches.
We have heard from many companies that decision-making about innovation is often somewhat arbitrary. In some companies, it may be the decision of the senior executive. In others, it may be the most persuasive manager. In yet others, the net effect of innovation might come from small decisions scattered across many different product programs. All of these decision processes rest on the premise that you need to “choose” your path. And at times of meaningful market disruption, whether it is due to external influences such as covid-19, or adjacent influences such as disintermediation from big tech platforms, or a new offering launched by a competitor, it is not always clear what path will deliver what outcome.
Well, what if the market tells you? The data that companies can gather in Innovation Performance Management can give customer-based continuous market feedback on hundreds of business model ideas. This data lets companies know whether the timing is right for a particular idea, whether the idea is directionally correct but needs modification, or whether there are trends in adjacent industries that can be harnessed in powerful ways. This data, collected continuously in this manner, is continuous foresight. It is information from the market that is pointing to the direction where you need to go. With this type of data, companies can liberate themselves from inertia - the problem of “let’s just keep on the path we’re on,” or from political decision-making. Companies can know when they need a portfolio of small changes and when they need to redefine themselves in a significantly new way in the face of disruption in order to achieve strategic goals.
Let us know what you think! Do you have a path in your company already for obtaining continuous foresight?