As technological and cultural changes shift the way business is done on a global scale, companies can no longer thrive simply by being the best at one thing. Digitization of the world means that no one approach to innovation is competitive for long, and stable industries are being disrupted by companies like Google and Apple who have begun to master the art of integrating their digital skillsets with those of established partners to create nearly impossible-to-beat offerings. Organizations who are effective at tapping the entire spectrum of innovation are those who have been able to leverage their own ‘native genius’ while collaborating with other firms, tapping into major cultural trends or getting into deeper relationships with their customers.
Most traditional concepts of innovation are remarkably narrow in view. At first glance, smartphones seemed to be about the hardware, but the genius is that Apple and Google accessed nearly every element available to them—strategic partnerships with music companies, new distribution channels for their products, new business models for tech devices, and highly-integrated customer service systems. By innovating across the spectrum, they not only changed their product but effectively jumpstarted a new industry—and left their competitors trying to catch up.
It’s not just tech companies who are tapping into this full spectrum of value to create next-generation digital businesses. Airlines, manufacturing, basic consumer products, apparel companies and even governments are letting go of long-held assumptions about what they can and cannot do to ensure they survive rising costs and increasingly-high customer expectations of quality and engagement.