Cool isn’t good enough when innovating

Innovation. There used to be a time when cool was enough. Either companies developed groundbreaking ideas – like the BlackBerry – and then didn’t continuously reinvent or they invested in a novel proof of concept (POC) and left it at that, without scaling up.

But innovation isn’t a one off, it must be continuous and purposeful.

We can all rattle off the name companies—Atari, for example—whose failure to reinvent cost them. Far less public is the number of companies who have failed to scale POCs. Suffice it to say, the list is long. Many executives I speak to will quietly acknowledge in hindsight that they were blinded by the art of the possibility without thinking about the practicality of implementation. Or they invested in an innovation that wasn’t connected to their business objectives.

When I talk to clients about how to approach innovation I talk about “purposeful innovation.” This doesn’t necessarily mean inventing the next new digital device or game. It could mean being innovative about how you approach your business plan to ensure that there is enterprise impact and value.

Consider Danone. For more than a century yoghurt was – and still is – the backbone of its business. But in 2017 recognizing that customers’ tastes and dietary views are changing, it acquired WhiteWave, which expanded its portfolio to plant-based foods and drinks such as soy milk. This was an innovative way to solve for consumer trends and expectations for healthier and more sustainable eating and drinking choices. The jury is out on if soy will deliver, but the move was undeniably innovative thinking.

Innovation, after all, helps a company stay ahead of the curve – failure to innovate can be the death knell.

An example of staying ahead of the curve is how Singapore’s Changi Airport has made a series of investments in reinventing itself. Changi Airport had a plan. It wanted to both attract travelers to its airport (recognizing that travelers could choose other regional hubs for transit) and attract Singaporeans to travel to the airport to shop. It then applied innovative thinking on how to achieve the goal. It hired architect Moshe Safdie to design a key new shopping location in the airport named Jewel that has indoor gardens and leisure facilities, and more than 280 retail and F&B outlets. It also started using microsegment targeting for ads; a new mobile channel for in-store promotions and passenger services; and launched a virtual assistant chatbot that responds to customer queries 24/7 about flights, shopping, entertainment and basic navigation matters. The net result – travel and shopping to the airport are up.

What I like about the Changi example is it didn’t just do one thing. And it didn’t do innovation for innovation’s sake. The airport applied purposeful innovative solutions to its business – and it’s working.

Some industries facing epic disruptions aren’t just trying to stay ahead of the competition. They will need to innovate to stay competitive. The Life Sciences industry is staring down that barrel as some of the more innovative pharmaceutical company leaders are designing medicines individually tailored based on a variety of factors, from DNA to real-time biophysical measures such as heart rate and blood pressure. It’s a movement from a one-size-fits all approach to highly sophisticated individualized ones—often using a unique combination of science and new technology—what we call New Science. Continuous innovation isn’t an option, it’s a basic requirement for this industry.

But that shouldn’t be daunting. It should be inspiring. We have a saying at Accenture that we often use: epic disruption is also epic opportunity. However, not every innovation has to be a massive step-change – but it does need to serve a purpose for the consumer.

And remember disruption may feel like it happened overnight, but it’s often been going on for longer than people think. Innovation just for the sake of doing something cool, isn’t enough. But if you do it purposefully, you’ll gain the Street cred that matters.