Blog-Layout
Three major trends for innovation management in 2021 and beyond
Ulrich Lichtenthaler • Jan. 21, 2021
Beyond COVID-19 crisis management: market development, portfolio management, and AI-based innovation are among the key innovation trends for the next twelve months.
Over the past weeks, I had multiple discussions with executives and managers in the fields of innovation, R&D, marketing, digital transformation, and AI. Among many other things, we talked about the key innovation management trends for 2021. Of course, there are many other lists that try to identify the top technology trends, such as the Gartner Hype Cycle analyses. Many key trends further are industry-specific, and some are also strongly affected by the COVID-19 crisis. In addition, these lists will always be subjective, and my top three trends are strongly driven by my focus on innovation and strategic management in the context of digitalization and AI. Nonetheless, the following topics emerged in many discussions with experts from multiple sectors and are therefore highlighted as three major trends for innovation management in 2021.
1. Market development
In the context of the COVID-19 crisis, many companies are reluctant to enter completely new business fields. Rather, they explore opportunities for innovation and growth based on their existing competencies. In fact, the following question was highlighted in many discussions: “How can we leverage our existing resources in additional markets in order to achieve new revenue streams?” In fact, this topic has long been a classic innovation management challenge, and there are several tools for addressing it. For example, a systematic analysis of the ‘jobs’ and functions that a technology, solution, or competence may fulfill can be an important starting point for targeting new markets with relatively limited additional investments.
2. Portfolio management
Although there are many stories about successful innovation in the context of the pandemic, many innovation executives and managers face tighter budgets for the next twelve months. As a consequence, many firms have to refocus their remaining innovation activities, resulting in the following question. “How can we select the most promising innovation projects in the context of limited budgets for R&D and innovation?” Thus, the pandemic leads to a renewed interest in innovation portfolio management in terms of optimizing the variety of ongoing innovation projects. Increasingly, this project portfolio management includes innovation and digital transformation projects to achieve synergies between innovation and digitalization initiatives.
3. AI-based innovation
Another key point that was underscored in many discussions is the opportunity to extend a firm’s current AI initiatives beyond optimization and efficiency. In fact, many executives and managers currently ask the following question: “How can we profit from AI and data analytics beyond enhancing the efficiency of our existing processes?” After an initial optimization focus of many AI programs, companies now increasingly try to leverage their AI activities for more innovative solutions and growth. These innovation-related opportunities of AI and data analytics are addressed in more detail in my recent book ‘Integrated Intelligence: Combining Human and Artificial Intelligence for Competitive Advantage’.
Towards sustainability innovation
These three topics are key challenges for many innovation executives and managers in 2021, and they go beyond COVID-19 crisis management. Even beyond these three topics, many experts consider sustainability the ‘next big thing’ for their firms’ innovation activities after the coronavirus crisis. While many firms do not yet undertake specific initiatives, they currently start strategic planning for the post-pandemic period by addressing the following and related questions: “How can we align our post-pandemic innovation activities with essential megatrends, especially sustainability?” Thus, neo-ecology and sustainability already emerge as future key trends for innovation beyond 2021.
1. Market development
In the context of the COVID-19 crisis, many companies are reluctant to enter completely new business fields. Rather, they explore opportunities for innovation and growth based on their existing competencies. In fact, the following question was highlighted in many discussions: “How can we leverage our existing resources in additional markets in order to achieve new revenue streams?” In fact, this topic has long been a classic innovation management challenge, and there are several tools for addressing it. For example, a systematic analysis of the ‘jobs’ and functions that a technology, solution, or competence may fulfill can be an important starting point for targeting new markets with relatively limited additional investments.
2. Portfolio management
Although there are many stories about successful innovation in the context of the pandemic, many innovation executives and managers face tighter budgets for the next twelve months. As a consequence, many firms have to refocus their remaining innovation activities, resulting in the following question. “How can we select the most promising innovation projects in the context of limited budgets for R&D and innovation?” Thus, the pandemic leads to a renewed interest in innovation portfolio management in terms of optimizing the variety of ongoing innovation projects. Increasingly, this project portfolio management includes innovation and digital transformation projects to achieve synergies between innovation and digitalization initiatives.
3. AI-based innovation
Another key point that was underscored in many discussions is the opportunity to extend a firm’s current AI initiatives beyond optimization and efficiency. In fact, many executives and managers currently ask the following question: “How can we profit from AI and data analytics beyond enhancing the efficiency of our existing processes?” After an initial optimization focus of many AI programs, companies now increasingly try to leverage their AI activities for more innovative solutions and growth. These innovation-related opportunities of AI and data analytics are addressed in more detail in my recent book ‘Integrated Intelligence: Combining Human and Artificial Intelligence for Competitive Advantage’.
Towards sustainability innovation
These three topics are key challenges for many innovation executives and managers in 2021, and they go beyond COVID-19 crisis management. Even beyond these three topics, many experts consider sustainability the ‘next big thing’ for their firms’ innovation activities after the coronavirus crisis. While many firms do not yet undertake specific initiatives, they currently start strategic planning for the post-pandemic period by addressing the following and related questions: “How can we align our post-pandemic innovation activities with essential megatrends, especially sustainability?” Thus, neo-ecology and sustainability already emerge as future key trends for innovation beyond 2021.
As sustainability and ESG are on top of many firms’ strategic agendas, there is a growing need for specialized trainings, workshops, and keynotes.
Nachhaltigkeit und ESG stehen bei vielen Unternehmen ganz oben auf der Tagesordnung, daher wächst der Bedarf an spezialisierten Schulungen, Workshops und Vorträgen.
ChatGPT und generative KI werden uns nicht überflüssig machen – auch wenn die aktuelle Berichterstattung genau diesen Eindruck erweckt. ChatGPT hat uns allen verdeutlicht, wie schnell sich manche Felder künstlicher Intelligenz (KI) aktuell weiterentwickeln. Auch wenn einige dieser Entwicklungen schon seit Jahren erwartet wurden, ist die Geschwindigkeit vieler Verbesserungen selbst für manche ExpertInnen erstaunlich. Der aktuelle offene Brief des Future of Life Institute, der von über 1.000 Personen unterzeichnet wurde, ist daher grundsätzlich nachvollziehbar. Darin wird insbesondere auf die Risiken von KI hingewiesen und eine sechsmonatige Pause für das Trainieren leistungsfähiger KI-Lösungen gefordert. Eine ausreichende Beachtung der Risiken von KI ist unbedingt erforderlich, auch wenn die aktuelle Berichterstattung dazu oft zu kurz greift. Noch erstaunlicher ist aus betriebswirtschaftlicher Sicht jedoch das Medienecho der letzten Wochen und Monate zu den Auswirkungen von KI auf die Arbeitswelt, das sowohl in klassischen Medien als auch bei Social Media zu beobachten war. Dort wird häufig gefragt, ob wir als Menschen noch schlau genug sind im Vergleich zur KI. Auch wird diskutiert, ob KI künftig die meisten Führungskräfte ersetzen wird. Besonders oft steht also wieder einmal die Frage im Mittelpunkt, wie viele Personen durch KI ihren Job verlieren werden. Diese Frage ist auf den auf den ersten Blick vielleicht nachvollziehbar, weil durch KI-basierte Automatisierung in den nächsten Jahren tatsächlich in nennenswertem Umfang Jobs verloren gehen werden. Insbesondere werden auch solche Büro-Jobs betroffen sein, die bisher noch nicht automatisiert werden konnten. Dadurch sind mit offensiven Schlagzeilen sicherlich hohe Klickzahlen zu erreichen. Außerdem werden auch Arbeitsplätze in der Medienbranche automatisiert werden, wodurch sich die Berichterstattung zusätzlich erklären lässt. Integrierte Intelligenz strategisch oft wichtiger als eigenständige KI Dennoch wird viel zu oft ein einseitiger Schwerpunkt gelegt und damit auch ein falscher Eindruck vermittelt. Der wirklich entscheidende Teil der Entwicklung für die meisten Unternehmen und ebenso für die meisten Arbeitskräfte liegt in der Kombination von KI mit menschlicher Arbeit – und eben gerade nicht in der vollständigen Automatisierung von Jobs durch KI. In den letzten Jahren kamen verschiedenen Studien immer wieder zu ähnlichen Ergebnissen. Der Grundtenor ist dahingehend identisch, dass sich deutlich mehr Jobs verändern werden als komplett wegzufallen (vor allem, wenn die Zahl der Arbeitsplätze berücksichtigt wird, die durch KI zusätzlich entstehen). Diese Kombination von menschlicher mit künstlicher Intelligenz wird auch als integrierte Intelligenz bezeichnet.
Despite the massive attention to sustainability and ESG, many firms still underestimate the opportunities for innovation beyond reducing CO2 emissions.
The GREEN GRASS STRATEGY goes beyond traditional sustainability, and it refers to developing innovative solutions for a ‘net positive impact’. What is the GREEN GRASS STRATEGY? The GREEN GRASS STRATEGY is a sustainability strategy that focuses on innovation and new business opportunities rather than limiting sustainability programs to resource efficiency and the optimization of established processes. As such, the GREEN GRASS STRATEGY goes beyond traditional sustainability concepts that often focus on avoiding harm (no net loss) to consider positive sustainability and to embrace doing good (net positive impact). The GREEN GRASS STRATEGY enables you to leverage sustainability for innovation and value generation, and it can be systematically developed with the SUSTAINABILITY INNOVATION MAP , which helps firms to achieve a competitive advantage by systematically pursuing sustainability innovations in all ESG dimensions – environment, social, and governance.
Generation Z – and what is next? Many of today’s students are ‘sustainable natives’ and expect companies to make a positive contribution to solving ecological and social problems. In an international survey of more than 27,000 people, GlobeScan found in 2020 that for 60% of younger participants, climate change and social inequality are top priorities, combined with the expectation that companies should contribute to solving these challenges. Very importantly, the young generation expects positainability , i.e. making a positive contribution and not just reducing negative effects of doing business, for example by reducing CO2 emissions. To implement this positive sustainability approach, companies would need to pursue a GREEN GRASS STRATEGY . So far, however, many companies are hardly prepared for the future changes due to the ideas of those persons that will be starting their careers in the next few years. In fact, this new generation of ‘sustainable natives’ presents new challenges and opportunities for companies (as I have explained in more detail in a recent article in the Haufe Personalmagazin ). In particular, the following typical perspectives of this ‘Generation PI’ – Positive Impact – have to be considered. 1. Sustainable natives Many current students are ‘sustainable natives’ because they perceive sustainability as a core topic since their early youth. In contrast to the extensive public discussions about ‘digital natives’, the role of ‘sustainable natives’ has been mostly ignored so far. 2. Doubtful prospects Typical for ‘Generation PI’ are doubts whether their future standard of living will remain as good as their current situation and as the life of their parents, especially due to climate change. 3. Expected limitations Many current students expect restrictions on possible behaviors to enable a more sustainable economy and society in the future, for instance bans or massively increasing prices for air travel or the consumption of less sustainable food. 4. Positive contribution Beyond the goal of no-net-loss, ‘Generation PI’ is ready to make a positive contribution in terms of a net-positive-impact. Here, companies need to focus on major innovations rather than limiting themselves to reducing CO2 emissions in established processes.
Positainability – or positive sustainability – refers to the combination of doing good and avoiding bad to arrive at innovative solutions.
On May 28, 2022, Liverpool FC with the manager Juergen Klopp have the chance to win another Champions League title after beating Chelsea to win the FA Cup 2022.
How to use the proven tool that helps firms across industries to systematically pursue sustainability innovations.
There is more to sustainability management than enhancing the efficiency of established processes to reduce emissions – much more!
