5. Encourage digital innovation and experimentation
As they pursue growth, private enterprises are prioritizing the encouragement of digital innovation and experimentation – right across the organization. While they already have the benefit of an entrepreneurial spirit, the digital innovation agenda also requires them to develop an agile, data-driven, and experimental culture. They are rewarding their people for taking an analytical approach to experimentation. For example, US-based software company Adobe initiated a unique innovation program called “Kickbox”. The program incentivized junior employees to come forward with unconventional new ideas. Without any predefined qualifications to innovate, new ideas will always be pre-approved with a US$1,000 budget to build prototypes. Employees have the freedom to deploy funds as they deem fit and there are no rigid rules or requirements for progress reporting. A portion of Adobe’s annual innovation budget is earmarked for this program. It has resulted in the launch of Adobe’s Creative Cloud Libraries, an acquisition, and the development of multiple new tools and enhanced features for existing products.
Humans@center, Technology@speed, Innovation@scale
All the five technology-related priorities outlined above are indeed important to private enterprises. Nevertheless, as EY teams have learned, companies that create exponential value approach these priorities not individually, but rather as part of a bigger technology transformation program.
Leading organizations also understand that adopting new technologies will not be a one-off exercise. It requires an innovation “muscle” or core engine that sits at the heart of the business. They understand that they are not engaged in experimentation on the side. Instead, they have a deep-seated commitment to innovation that drives meaningful contribution to reframing the business. As a result, the entire business moves and adapts faster. For them innovation has become integral to the way the company operates and is a sustainable source of technological change.
Private enterprises that put humans at the center, deploy technology at speed, and innovate at scale will set themselves up to create exponential value through their technology transformation programs. They will also develop digital and technological capabilities that give them an enduring advantage in the market and the capacity to successfully navigate even the most challenging of times.
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Summary
Driving truly sustainable growth as a private enterprise is a big and complex endeavor that demands concentrated effort in several key areas. As well as technology, it is critical to focus on people, operations, customers, finance, transactions and alliances and risk. Through our research and work with the world’s leading private enterprises, we’ve learned that it requires balancing the company’s maturity across these 7 critical drivers to drive truly sustainable growth.