Articles   •   March, 2017

Call me a sceptic. I admit I usually frown when I come across articles that tout “5 Ways to become such-and such” or “10 Traits of successful this-and-that”. But when I read Fast Company’s 10 lessons from its 10 consecutive years (since 2008) of covering innovation, I thought here might be something worth reading. The lessons are varied and interestingly, run from the years the US economy finds itself in a crisis through the years it emerges from one of its most challenging recessions. As the economic landscape changes, do different economic contexts and drivers shape the thinking and type of innovation? Would they influence the necessary ingredients that enterprises need to be categorised as innovative?

As I clicked through the 10 lessons (you can read about them here (https://goo.gl/yts0WW) it quickly became clear a number of common denominators underpin these innovative companies. It’s tempting to package them as “3 Essentials to be an Innovative Enterprise” but I suspect there may be sceptics among you.

Culture matters a lot but only when bolted onto a purpose

Paraphrasing the articles, the fruits of innovation do not unfold on schedule or along a straight line. To stay up with and ahead of changes in today’s world, enterprises need to be fueled by an internal restlessness and resilience that is (now, this is important) tightly welded to the enterprise mission. Spontaneous combustion in reaction to every trend in an ever-changing market would not only exhaust the enterprise resources, but distract it from its purpose. Clarity in a purpose that focuses on customers, users and products – as opposed to profits and shareholders – when it comes to transitioning to embrace growth is superior strategy.

Getting in the groove of lateral thinking cranks open possibilities

I couldn’t put it any better if I tried: “Many of today’s most exciting new businesses are predicated on a similar sort of behavioral change. Understanding the human motivations behind a fixed behavior is every bit as important as identifying the potential of new habits. Only by designing an experience that solves both challenges will innovators have a chance of altering our reflexive responses.”

We often associate lateral thinking with the application of principles, customer experience and operating models from industries very different from ours. What is perhaps often overlooked is challenging the sacred norms that present both obstacles and opportunities within the industry. Think about Airbnb whose entire business is based on challenging the assumption that we’d prefer to sleep in a predicable hotel-chain room instead of a stranger’s home. That word, “predictable,” is both Airbnb’s obstacle and its opportunity. Or how Nike iD understood that today all of us have an innate desire to become creators and allowed customers to create their own sneakers. Customised shoes is only the beginning – from Facebook and YouTube to Snapchat and Instagram, millions now generate their own media in an age of unprecedented creativity and individuality.

Cultural habits shift – take music and cashless payments – and enterprises that get into their grooves and allow themselves to be carried with their currents find themselves on the shores of wonderful destinations. For all of our technological advances, the human element remains the ultimate challenge and opportunity.

Borrow your neighbour’s binoculars and don’t go at it alone

Building any business involves some level of betting against a backdrop of ambiguity. So, how do business owners navigate this environment? One approach is to take a macro view of a wide expanse and ask: What are the things that we can count on? What are the things that we feel confident will be true, regardless of contextual forces?

Over the years, we have seen trends that have shifted the norm, shaped behaviours and created opportunities where none existed. From social-media, mobile technology and access economy (think Uber, Airbnb and Grab), we often associate innovation success with a single disruptor—Steve Jobs, Travis Kalanick, Mark Zuckerberg—without appreciating “how much rests on the shoulders of progenitors and peers who advanced the game”.

Netflix was once a DVD-by-mail service rivalling brick-and-mortar outlet Blockbuster. It pivoted its business and today Netflix competes with the likes of Amazon Prime and HBO. Yet it was the breakthroughs generated by the less-known and even lesser-praised Hulu that pointed the way to all of their success. As the articles pointed out, “Hulu is among a constellation of providers continuing to advance a revolution whose ultimate outcome is still unclear….. And it continues to play a role in pressing Netflix, HBO, and others to keep advancing”.

“Maverick” is one of Evant & Co’s brand attributes. We continue to challenge the system and to open new pathways.

About the Author(s):

Andrew Lee is the Managing Director of Evant & Co., a management consulting firm with offices in Kuala Lumpur and Jakarta. Our purpose is to help our people and our clients to realise their aspirations while improving lives through business. We advise leaders on strategy, human capital, digital, and outsourcing.