Tue, 16 April 2019
With major shifts in the global economy, businesses need to be ready. Amid a slowdown of growth, companies that thrive are using innovation to grow the intangible economy. Steven is the global head of innovation at KPMG. Steven joins us to talk about the intangible economy and what companies need to know.
Scale and Investment Equals Growth
CEOs and boards who are serious about innovation must consider the intangible economy. KPMG conducted a study of 15,000 global firms with at least 250 employees. They called the top 10% of these firms frontier firms. The other 90% were the followers. A remarkable factor in the findings: major growth seemed to remain with the frontier firms. Very few followers were able to reach growth at the frontier level. Of the firms, only 18 follower firms moved to frontier status. What separated the two? Scale and how a firm invested. Frontier firms used data and AI to transform their platform for productivity.
Harness the Power of the Intangible Economy
The value of data is clear when one considers how Amazon has harnessed its power. Smart businesses are finding ways to use data as a business strategy.
The four pillars to consider in developing data and AI strategies:
Creating Core Capability Around Innovation
Using innovation to grow the intangible economy requires more than having an innovation team. You have to create core capability around innovation inside the organization. There are a number of things that can prevent that from happening. KPMG worked with Innovation Leader to survey large organizations worldwide about innovation. The responses reveal what is stifling innovation in organizations.
The need for innovation has never been stronger. Leadership involvement is the driving force behind it. Innovation is a capability not a box on your chart or team name. The organization will take their lead from the CEO. You have to live it every day with your team.
There are many challenges to sustaining innovation. Part of the problem is that leaders don’t understand what innovation is. Defining innovation is an important step. Customize the definition of innovation to fit the organization. Set the standard for the culture of innovation. Innovation is characterized in three ways:
One challenge that leaders face is building innovation as a sustainable activity. Advice Steve gives for those trying to transform their organization:
When it comes to your budget, be clear with yourself, your people and the marketplace. Money should be tracked explicitly against the specific use case and efforts.
Five Minutes to New Ideas
Some people might wonder what ethics has to do with innovation and creativity? Some organizations could take a lesson on how to establish and reinforce a culture of good ethics. A culture must reinforce its core values. The Boy Scouts did this. Five Minutes to New Ideas explores how organizations can learn a lesson in ethics from the Boy Scouts. What standards of ethics have you defined for yourself and your team? Does your team know the ethics you expect from them? Do you hold everyone, yourself included, to that standard? Let’s set the standard for ethics in innovations.
Direct download: Using_Innovation_to_Grow_the_Intangible_Economy.mp3
Category:Past Shows -- posted at: 12:00am PDT