Welcome to the innovation society
At a retail conference some time ago I spoke about how good customer experience starts with a good customer insight. The speaker before us gave a brilliant speech about the paradigm shift in the society that we are experiencing right at this moment.
The speaker was a bright future analyst called Troed Troedson, who works for a Swedish company called Paradimmäklarna. He claims that we are standing in the middle of the innovation society.
He summarizes this elegantly by explaining the transition from a society based on division logic to a new society based on cloud logic.
According to Troedson we are moving from a society of specialists, divided in different fields of competence (division logic), to a more fluid society where everyone has access for vast amounts of information (cloud logic).
In a society based on division logic the focus lies on in-depth knowledge, specializing in one field and developing unique product abilities and functionality that cannot easily be copied. In this society there is room for long term planning and individuality.
In a society based on cloud logic, the knowledge and information is no longer unique, everyone can access it, and products and services can be copied rapidly. Knowledge is no longer as important, but rather how we interpret the information we receive and how we control and affect the information others have about us. Reputation and brand perception is far more important than if the products and services are the best on the market, and the available options are often many. The word cloud logic stems from the change in need from specialization, to the need to spread out as thin as possible. Instead of trying to be the expert in one narrow field, try to be just good enough in as many areas as possible (just think of Google and Amazon).
Troedsons conclusion is that we have moved to an innovation society where the capability for innovation, creating strong brands and quickly adapting to change, are the keys to survival and success.
(Table created with permission from Troed Troedson)
My key take away from this message is:
- It is no longer sufficient to make the best products/services. There is a large probability that when you enter the market, your competitors will quickly follow.
- It is your customer’s perception of your brand and their experience with your product and services that can make you stand out and win the race against your competition.
- There is no longer time for the traditional long-term strategic planning, but aim for creating an agile and alert organization that can quickly adapt to changes in the surroundings and new opportunities – make sure you have good processes in place to discover the market changes before it’s too late.
- Create an innovation culture based on your customer’s needs – go for small autonomous innovation teams that moves just on the edge of where you operate today, converging slowly to the next adjacent possibility.
- Try small, fail fast, learn and keep trying – keep you customer always in center.
Tieto has established own innovation ecosystem called Tieto Experience Hub to discover new business models and concepts in the sweet spots between industries. There innovations are discovered when viewpoints, industries and cultures collide. Putting ideas quickly into the spotlight speeding up innovation.
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