Creating client value through innovation.
 

Creating client value through innovation.

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As the need for differentiation as a source of competitive edge becomes more important, innovation is shaping up as a key battleground for professional services firms.

As the need for differentiation as a source of competitive edge becomes more important, innovation is shaping up as a key battleground for professional services firms.

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Creating client value through innovation. Creating client value through innovation. Document Transcript

  • Creating value growththrough innovation.Innovation and value creation, differentiationand leadership are emerging as importanttopics in professional services.By Melissa Wraith, Senior Consultant and Service Practice Lead, mextConsultingMarch 2013With global and local structures quickly ˃ Pet project advancement instead ofchanging and competition intensifying often objective criteria assessment,from unexpected sources, innovation is high ˃ Internal blindness to simple, cheap, bigon the agenda with most firms. impact opportunities, ˃ Lack of prioritisation, planning & processBut at the same, time innovation that delivers and resource allocation,a real advantage is hard to come by. Across ˃ Lack of client orientation,all industries some estimates say that up to 9 ˃ Resources are focused on the launchout of 10 innovations fail to live up to rather than spread equally across theexpectations. development process including testing.Common issues found in the less than These issues often lead to innovation notsuccessful innovations include: having the desired impact, not being delivered ˃ Too narrow and unstructured well enough or at all – resulting in wasted collection of ideas, resources as well as innovation fatigue. 1
  • In our innovation work with professional are re-interpreted into immediate, mid-termservices and other industries 4 key success and long term.factors emerge again and again: Other ways are the capability vs impact1) Innovation must be client need prioritisation and thus time framing, or using concrete to hazy front end terminology. focused. In any case, these frameworks serve to ensureIf you don’t know client needs beyond the that a continuous pipeline of relevantobvious, rational and functional, it is very innovation at different levels of impact anddifficult to identify ideas that could offer significance can be driven. It also allows forgenuine value. Understanding client needs is resource allocationtherefore critical. It not only makes sure ideasare focused on the client; it also makes sureyour innovation is focused around platforms you 4) Process & Tools.want to play in and supports your businessstrategy. A strong process and the right tools ensure the impact is as powerful as expected. This starts with the overall process. The best known one is2) Develop strong idea platforms. probably the Stage-Gate process developed by Robert Cooper and Scott Edgett.Innovation can relate to many aspects of thebusiness. Technical ones are often the first that It splits the innovation process into five distinctcome to mind. But left of centre ones often stages from ideation to launch. After each stagedisrupt better and tip the playing field towards there is an evaluation gate that consists ofyou much better. For example: different, stage relevant criteria and˃ Product & technical aspects including IT use, stakeholders. It starts with the overall ideation˃ Service aspects such as interaction, to ensure as many relevant ideas as possible are processes and content, developed. After that these ideas are filtered˃ People & communications. into the process to ensure the right ones are advanced at the right time with the right speedIn ideal cases through the first workshops and the right resources.additional platforms specific to the firm can beidentified, ensuring even more differentiated Each stage & gate has its own tools and criteria.innovation. Some of these are standardised, others are individually created to suit the firm.An aspect often overlooked is IP developmentfrom existing business capabilities or Another important aspect of process isapproaches. This can be a low cost, very strong continuity. Successful innovation is a continuoussource of competitive advantage. process with new cycles starting typically every 3 to 6 months.3) Pipeline horizons. The perception that innovation is a difficult, bigStructuring and assessing innovation into and a resource hungry distraction from corehorizons is critical to building a pipeline that business is an oft cited reason for not pursuingdelivers immediately and strategically on your innovation or doing it haphazardly. Butbusiness plans. innovation can be simple, focused and create immense value through differentiation,Typical structures are the Horizon 1, 2 and 3 leadership and better client need fulfilment ifstructures that look at maximising current the right knowledge and processes are applied.business, developing additional income streamsand fundamental business changes. Often these 2
  • About mext Consulting.mext Consulting is a customer and consumer value consultancy that was created in 2004 with a viewto challenging the conventional thinking driving the disciplines of sales and marketing in order tocreate a true understanding of customer motivation. mext bridges the gap between businessstrategy and implementation. We provide businesses with: ˃ Consulting ˃ Training ˃ ResearchWe support businesses to gain a competitive edge in their markets and help our clients grow withvision, precision and certainty. We employ a unique mix of rigour, insight and creativity and applyour proprietary and proven tools to identify key growth levers.We help you make your customers and consumers want more of you through: ˃ Brand ˃ Customer experience ˃ Innovation ˃ Category management ˃ Training ˃ Insight165 Cremorne Street RichmondVictoria Australia 3121P: +61 3 9428 5417www.mextconsulting.commelissa.wraith@mextconsulting.com 3