INNOVATION WITH STRATEGIC PARTNERS
in the ecosystem
The digital transformation presents companies with the challenge of revolutionizing their existing business models while at the same time developing entirely new, radical value propositions. Ecosystem innovation offers them an opportunity to realize far-reaching developments in collaboration with strategic partners. This benefits customers, as well as all stakeholders involved in the process.
Achieving success with innovations requires forethought, decision-making, and networking. First and foremost, looking to the future is an essential step for innovative companies, as they can only establish the areas in which they will discover innovation by first getting a feel for the challenges and opportunities ahead. This forms the framework for identifying new products, services, and business models, wherein exemplary innovation can be achieved through the use of a clear profile. “Managers have to make conscious decisions both for and against specific areas in which to seek innovation and generate ideas,” notes Jörg Schönhärl, partner at Horváth & Partners. “This is the only way for them to pool their strengths, achieve synergetic effects, and avoid the risk of overburdening their organization during the process of achieving innovation.” Companies would be well advised to invest resources only in those search areas that promise the greatest success for their future scenario.
Seeking new business models
Normally, innovation management has two focal points: new products and services that enable the generation of additional sales through top-line effects, and better and more efficient internal processes that enable greater earnings to be achieved through bottom-line effects. However, in times of transformation, modern work to achieve innovation must go beyond the standard repertoire and be far more strategic. Today, a whole range of pioneering technologies are driving the transformation of the business world forward. One example of this can be seen in the trend towards decentrality, as well as the process of physical resources being replaced with digital resources. The type of work is also changing, moving towards “New Work,” which is characterized by agile, temporary, and objective-oriented organizational setups. These changes also bring new competitors into play. For this reason, companies seeking to safeguard their success must transform their existing business model and develop new value propositions.
MANAGERS HAVE TO MAKE CONSCIOUS
Ecosystem innovations can
improve both a company’s
market service offering and
its value chain.
It’s clear that today’s work to achieve tomorrow’s innovation involves multiple networks. This can be seen in many examples, including the “Universal Home” initiative, in which companies such as Dornbracht, Medion, Poggenpohl, Schott and WMF have joined forces to jointly shape the future of life and living. “In the age of plug-and-play business models, companies can often achieve more in concert than when working alone,” says Jörg Schönhärl. “This is a major stimulus for ecosystem innovation.”
Overview of ecosystem components at: www.horvath-partners.com/ecosystem.