How to transcend the innovation cycle

Innovation remains the driving force of the technology industry, propelling us forward regardless of how the market shifts.?

And like other cycles – economic, hype, and adoption – innovation cycles fluctuate between adopting new technologies and products, and perfecting or optimizing what already exists.?

The trick is to be able to identify the cycles impacting your business early enough to take meaningful action.?

There are many aspects of technology development out of our full control. Lenovo works in a global ecosystem that includes chip designers,? third-party software developers and component suppliers, just to name a few. So, understanding the innovation cycles shaping those businesses and the market is crucial to staying ahead of the curve - and transcending it.?

Dip or New Trajectory?

Cycles are inevitable. The macroeconomic environment changes, business cycles move with these currents, and customers’ tastes, whether consumer or commercial, evolve. A critical aspect of navigating the tech cycle is understanding whether you’re facing a ‘dip’ or a fundamental shift.? A dip is a temporary downturn that might be a market reaction to external forces, perhaps a short-term supply chain issue, or an approaching update to a product line. If it’s a dip, a company can change direction and assess its impact on the business strategy to maneuver through it and emerge stronger on the other side.?

If it’s a new trajectory, you will need to take a different approach altogether, involving strategic ‘bets’ that have the capacity to reshape the technology, its place in the market, and potentially the company itself.? For example, introducing new technology that helps accelerate production.? It's attractive because it allows us to meet high demand in a booming market. However, taking things slower might also be prudent, allowing for more comprehensive testing and refinement before making significant capital investments later on.?

The approach to adopting and implementing new technology should vary depending on where you are in your own business cycle. During both the adoption and optimization phases of the innovation cycle, people become more selective, seeking technology solutions catering to their unique requirements.

Understanding distinct customer profiles, needs, wants, and other behaviors and factors helps clarify innovation strategy.

Innovation models demand new business models

The key is to transcend these cycles. How? By leaning into the opportunities and becoming what McKinsey describes as a ‘committed innovator ’. Although there are a number of approaches, what is common for committed innovators is the goal of achieving significant returns by creating new business models that can accommodate continuous change.

I said earlier that this was similar to making ‘strategic bets’ about which technology or innovation to choose to focus on. That demands understanding how any innovation can contribute to the growth of the organization.?

One example is AI. Since late last year, progress in generative AI has generated a lot of new interest in the technology and demand for applications, spurring an adoption-refinement cycle we are witnessing unfold all around us. But it’s vital to understand how AI fits into the broader, long-term tech cycle.?

From a device perspective, AI isn't a standalone product. It enhances existing technologies, and it improves various aspects of our products and our workflows, from planning and development to testing and support.?

For example, this year’s new Lenovo ThinkPad commercial laptops include a new Lenovo View application offering AI-enabled computer vision technology for enhanced video image quality and tools, and digital wellness alerts. Security is another aspect enhanced with AI-driven human presence detection. Select ThinkPad, ThinkBook, and ThinkCentre PCs, offer an added layer of privacy with the ability to detect shoulder-surfers and automatically dimming the display, ensuring your data stays yours.

It's not, therefore just about selling AI adoption from a market perspective. It's about integrating it effectively to enhance the overall product, service, and experience. It’s the same way our devices are built to be integrated with working from the cloud to enhance the work-from-anywhere lifestyle many professionals adopt today.?

So as one example of a committed innovator, at Lenovo we’ve committed to doubling investment in innovation in the mid-term, which includes an additional US$1 billion over three years to accelerate artificial intelligence (AI) deployments for businesses worldwide. In doing so, we’ve taken the longer-term view, having considered the details of the implications of what one particular technology might offer.

Technology is a dynamic and exciting industry to be a part of. Innovation is our compass. As the cycles ebb and flow between adopting the new and optimizing what already exists,? we continue to focus our strategy on providing smarter, value-creating, cutting-edge solutions to meet customer needs. It’s the guiding principle of "smarter technology for all ”.

And it’s the key to transcending the inevitable cycles we all experience around innovation.