Insights from the Altran Tech Vision 2019: Getting real about digital ambitions
Regardless of whether it’s a 100-year-old incumbent or a digital-native, every company today is continually evolving its innovation model so they can maximize their return on investments, empower their people and launch successful products and services that people love to use every day.
However, a McKinsey & Co. study found that 70% of digital projects don’t deliver on their expected value. There are many reasons why plans derail. Corporate decision-making processes are not agile enough to follow through in a timely fashion. The product or service doesn’t deliver on the promise. There is a lack of talent in the marketplace. The list goes on.
We believe that innovating, especially in uncertain economic times, demands a continuum of responses that range from modest, incremental change to bold ambitions and company-wide transformations. This “10%-to-10X innovation continuum” is not a new idea, but recently business leaders have been more focused on the game-changing end of the spectrum. We believe a more balanced approach of operating across the innovation spectrum will produce higher value in the long run.
The Altran Technology Vision 2019 explores the critical question: How do you keep the business healthy while preparing for the future? We believe part of the answer is by leveraging the 10%-to-10X innovation continuum to capture all the potential gains, both large and small.
Here are a few industry examples where companies are competing by getting all the gains they can get, across the spectrum of innovation:
- In autonomous transportation, many companies (start-ups and incumbents) are pulling back from chasing the grandiose, drive anywhere anytime model of self-driving vehicles, and instead pivoting to business models that can make money today. From last-mile delivery of goods to shuttle buses in closed environments and cross-industry use cases, these modest solutions can generate revenue and pay the bills until the future arrives.
- By fixing things and focusing on performance improvements, companies can become more resilient. For example, one wind-turbine manufacturer/operator has an installed base of 9,000 customers but is unable to maintain the equipment in a timely fashion. By creating virtual “digital twin” copies of their turbines, from design specifications all the way to live operational feeds, the company is tapping remote engineers to fix problems and increase uptime.
- While 4G hits a theoretical ceiling of 100 megabits per second, 5G is 100 times faster at 10 gigabits per second. However, the infrastructure that 5G needs to be viable—from base stations, spectrum and core networks—means that more modest use cases are taking center stage, including applications in logistics and asset tracking.
- Digital Therapeutics is a new category of potentially breakthrough interventions that support, enhance and even replace traditional therapies. The spectrum of opportunity starts with diagnostic applications, such as determining whether a patient has pneumonia by “listening” to cough patterns. More disruptive solutions include gamified experiences that can help improve mental health and control diabetes. And then there’s the bold, ambitious goal of “body hacking” therapies that can replace pills through physiological regulation.
Every company has a philosophy and process to keep forward looking and drive growth in new business activity. And in uncertain times, the right thing to do is make sure the business remains healthy as they find ways to land the bigger leaps.
To explore more ways for keeping your business healthy while preparing for the future, download the 2019 Tech Vision: Seeking Digital Alpha white paper below or View Microsite.
About the authors:
Pascal Brier | LinkedIn
– Executive Vice-President, Strategy, Technology & Innovation
Walid Negm | @walidnegm
– Group Chief Innovation Officer, Altran North America
Reference links: Bughin, Jacques, Catlin, Tanguy, Hirt, Martin, Willmott, Paul. Jan 2018. “Why digital strategies fail.” McKinsey Quarterly.