"Innovation" just might be the most overused buzzword of 2007, but in no way does that diminish its significance. It is the crux of modern-day success stories, as organizations
in every industry are shifting their mindsets to integrate innovation into their business strategies.
Communications executives are increasingly pulled into the process of building innovation into business models, as those at the top of their game know that "owning" the
innovation space is a valuable chip to play. "Seizing the White Space: Innovative Services Concepts in the United States," a recent report released by Tekes and Peer Insight,
puts the entire innovation discussion into the context of businesses that are restructuring to move away from, say, a stilted Six Sigma-based mindset to one based on customer
experience-led innovation (see chart on page 7).
The authors (Steve Ezell, co-founder of Peer Insight; Tim Ogilvie, CEO of Peer Insight; Jeneanne Rae, president of Peer Insight) of the report write, "Rote application of Six
Sigma methods will not be sufficient to enable innovation in the services era. Firms that try to use their Six Sigma teams end up with a consistent complaint: There are no big
ideas in our pipeline. The Six Sigma emphasis on control and predictability is simply at odds with the essential spirit of high-potential innovation: exploration and
discovery."
The report highlights 12 companies, all of which serve as role models and innovation leaders. When their strategies are applied to communications, they offer executives
strategies and best practices for leading the innovation movement within their organizations. First, though, it is important to note the 10 types of innovation, a key constructed
by Larry Keeley, the president of Doblin, Inc. They are as follows:
PROCESS:
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Innovation Process: How a company organizes to support innovation.
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Core Process: Proprietary processes that add value.
OFFERING:
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Product/Service Performance: Basic features, performance and functionality.
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Service System: Extended system that surrounds an offering.
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Customer Service: How you service your customers.
DELIVERY:
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Channel: How you connect your offerings to your customers.
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Brand: How you express your offering's benefit to your customers.
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Customer Experience: How you create an overall experience for customers.
FINANCE:
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Business Model: How the enterprise makes money.
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Value Network: Enterprise structure and value chain.
While all of these innovation types have communications implications, PR professionals can leverage their skill sets best in the delivery segment. After all, that is the point
at which the customer and brand are most relevant, as are the dissemination of messaging and attention to the customer experience. Of course, each company has needs and processes
specific to their own consumer base, but the report addresses multiple innovation applications by highlighting diverse companies.
Based on their analysis of the 12 case study companies, which included American Girl, Bank of America and Brivo Systems, the authors summarized key findings, all of which apply
to PR executives:
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The customer is the new reference point: Communicators can no longer shape messaging based on their products and services; rather, their customers wants and needs must
drive all activity. "SME [small and medium enterprises] business structures have flatter organization designs with less specialization, making it easer to develop an integrated
view of unmet customer needs," the authors write.
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The driving force of entrepreneurship: According to the report, the winning formula for innovation is "entrepreneurial passion plus deep customer focus." Learn it, love it,
live it.
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Changing who does what: This is especially relevant today, as PR's roles and responsibilities evolve daily. Always look for opportunities to take responsibility for tasks
you don't traditionally perform, as well as opportunities to let your customers assume responsibilities. IBM is prime example of the latter tactic, having incorporated customer
suggestions from Innovation Jams into business strategies.
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IT as the services "factory:" "IT capabilities are critical in service innovation because of the potential to "productize" (make more repeatable) innovative service
concepts. If your PR team hasn't already made friends with the IT department, you have missed the boat completely.
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The Internet as the key distribution channel: This finding needs little explanation. The Internet is the most direct route to reaching your customers. Use it.
Based on these findings, here are things you as a communications executive can do to enhance innovation within your own organization:
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Get senior leadership to commit to innovation.
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Promote strong communication between all business units; in other words, push integration.
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Develop a commonly shared vocabulary for innovation so all messages are consistent.
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Foster an innovative culture in the workplace.
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Be flexible and adaptive. Innovation implies change and is not viable in stagnant environments.
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Only choose clients and projects that will further your innovation goals rather than impede them.
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Align resources to the innovation agenda. PRN
CONTACT:
"Seizing the White Space: Innovative Service Concepts in the United States,"
is a report published by Tekes and Peer Insight. The complete report can be
downloaded at http://www.tekes.fi.
Six Sigma vs. Customer Experience Led-Innovation Thinking
Six Sigma innovation thinking | New requirements for customer experience-led innovation
Eliminate variability (reductive) ----------------> Introduce variability when it creates preference
Eliminate waste ----------------> Allow the customer to judge what is waste
Minimize cost ----------------> Tolerate additional cost when it creates preference that outweighs it
Map processes ----------------> Map customer journeys
Test hypotheses ----------------> Explore important questions to make new hypotheses
Rely on large numbers to create certainty ----------------> Rely on small numbers to uncover new possibilities
Use process capability as final arbiter for decision making ----------------> Use demonstrated customer behavior as the final arbiter