This is a case study of how we have helped our client with the digital transformation to achieve its business goal of starting “disruptive innovation” by embracing collaborative innovation culture and business processes within the organisation, through our Social CRM platform.
Key customer data :
This company has always thrived on Innovation with an annual spend of €1Billion on R&D, 30% of the annual turnover coming from new innovative products, with 13 €1Billion brands. Since its inception in 1929, this company has gained experience from managing various cycles of disruption caused by innovation/innovators in the industry. This experience has helped to continuously transform its business and gain from it by developing better products and brands to offer better quality of life for people and improve efficiency in doing business.
In 2015, global R&D spending by Global Innovation 1000 companies stood at US$680billion, which grew by 5.1% CAGR (2005-2015). Though these numbers look very impressive, there are internal challenges that businesses face to manage their R&D investment and create better outcome for the organisation. Businesses have also realised that higher R&D spending is not directly translated into revenue and over the years, cost of doing R&D within the corporate environment is also rising significantly. With such high costs, when a project fails to yield results, the financial impact is felt much more. During this course of time, large organisations tend to lose touch with agility, nimbleness in managing R&D investment in-house.
At the same time, the external world around businesses have also become very volatile. Some of the catalysts like private equity and venture capitals have empowered ordinary people, technology enthusiast, small SMEs, & Universities to redefine businesses and business processes. It is a global phenomenon now.
Businesses are struggling to reinvent itself to cope with such disruptions happening around them but some of the forward looking businesses have developed strategies to catch Fish even in muddy waters. How is that possible?
Our client had the benefit of a large global business footprint that provided them with an unique insight of the localized requirements. Backed with these insights and the keenly observed disruptions surfacing in their industry categories, they set themselves on the path of “partnering to pioneer the future” that complemented their internal R&D innovation. In summary, the following business needs to support the concept of “innovation through collaboration” had to be achieved:
- Tap into global start-ups, which tend to be nimble & agile, for innovation.
- Empower the internal business units to experiment with existing business assets.
- Create faster outcome and better ROI for the R&D investment the company is making.
- Stimulate start up culture within the organisation through mentorship and intrapreneurship.
Our platform & business processes implemented for our client’s organization was found to be well aligned with the following tactical approaches that were defined for achieving the main objective of “innovation through collaboration”.
- Collaborate with Innovators to create sustainable business on market requirements.
- Entry point for tech innovative companies to collaborate with them.
- Stimulate & facilitate experiment with their products, brands, functions across the organisation, thereby helping them to develop strategic partnership with the startup. Essentially, a collaboration effort, which is not limited to finding a solution to a specific problem, but a solution which may have been tried successfully in another market or a novel idea/solution which can give competitive advantage the organisation.
- Make innovation a seamless affair between internal business unit/s with external innovators
- Fast to market, easy-to-test, early to fail and cost-effective resultants through the tapping of internal expertise / mentors
- Evolve, adapt and create strategic advantage in its business through an agile, collaboration effort to embrace intrapreneurship.
Since having implemented our innovation harnessing platform, in 2015 globally, the client has had over 1000s of relevant & established startups participated, 100+ startups selected for business pilots with about 40% of them resulting into pioneering partnerships. 14 of such startups are from Singapore alone. In order do this, organisations would need a comprehensive business process and technology enabled platform to harness innovation with in your organisation.