Transformative Innovation In Traditional Sectors

Untapped potential for transformative innovation exists in traditional sectors that have been the backbone of economies for decades. By facilitating cross-industry collaboration, embracing people-centric approaches, community building, and learning from both successes and failures, stakeholders can cultivate a culture of innovation that transcends industry boundaries and drives systemic change. This diverse group of panelists, including innovators, entrepreneurs, and policymakers, recently came together to explore this topic.

19N Strategies

Unlocking innovation through cross-industry collaboration

By connecting with other industries and stakeholders, traditional sectors can unlock new opportunities and drive innovation. This cross-industry approach also highlights the need to build strong communities to drive transformative innovation. The key to transformative innovation is to innovate between industries rather than solely within. A great example given is the Swedish mining sector, where companies are now aiming for fossil-free steel. By using bio-residues from pulp and paper or agriculture industries, they create a syngas with similar efficiency to natural gas. This leads to connections between previously unrelated industries, new business models, and regulatory changes.

to the overall growth and success of the collaborating industries.

Maintaining a people-centric approach to innovation

The success of any innovation effort depends on how well it is received and adopted by the people it is meant to serve. This means that understanding the needs and wants of customers, employees, and other stakeholders is critical for transformative innovation in traditional sectors. This human angle emphasizes the importance of putting people at the center of transformation efforts to drive meaningful change, including overcoming regulatory barriers.

Cross-industry innovation allows different industries to share and combine ideas, technologies, and resources, creating new and innovative solutions that are greater than the sum of their parts, hence promoting a 1+1=3 mentality. This approach not only leads to the creation of products and services which resonate more closely with the customer needs but also opens new business models, markets, and revenue opportunities, further contributing

Although digitalization is often perceived as the end goal of modernization endeavors, it’s not. Instead, it should be seen as a powerful tool that can enable companies to accomplish their objectives more effectively. The real challenge, however, is the people, not the technology. As such, the success of digital transformation is linked more closely to people’s attitudes, behaviors, and values than to technological advancements. These are often more challenging than technological changes.

To bring stakeholders on board, trust must be cultivated with those who believe in the transformative vision. Beginning with people who share your vision and patiently educating them about the initiative’s benefits to establish a stable community of supporters that grows as the initiative progresses.

Fostering a collaborative community for transformative innovation

The process of transformative innovation extends beyond industry boundaries. Building a community is essential, as transformation goes beyond industry; it involves shaping a socio-economic system on a broader scale. Not only this, but the empowerment of the community and providing them with a platform to voice their opinions is crucial when bringing them together. Stakeholders must come together and exchange ideas for constant improvement.

achieving a balance between efficiency and innovation and learning to think outside the box.

Ultimately, to achieve transformative innovation, organizations must change business models, behaviors, and the mindset of the people. This is harder than a technological change. The key is to start with the people who trust your vision because not everyone will be convinced on the first day. The discussion on transformative innovation has taught us that innovation requires a deep understanding of people’s needs and is not just about creating new technologies. It requires a shift in mindset to work between sectors, build communities, and prioritize the customer and employee experience. It is about listening to the needs of the people and learning from our failures to achieve a systemically transformative change. And perhaps what’s most important is to remember that the joint endeavor of multiple industries or entities can generate an outcome that exceeds the sum of their individual contributions. A true 1+1=3 outcome, inspiring us to push boundaries and embrace new realms of opportunity and growth.

Cultivating a culture of innovation

We want to leave you with some food for thought to inspire future discussions. From embracing change to finding a supportive community, keep in mind the key takeaways from the panel discussion that offers insights into how organizations can cultivate a culture of innovation and evolve with the times.

This community of customers, employees, regulators, investors, and other stakeholders can drive transformative innovation. Actively listening to them provides valuable insights. However, transforming an entire industry requires more than incremental improvements. Innovation often comes from “radical outsiders” of an industry. These outsiders can identify new opportunities without being burdened by its history or limitations on exploring alternative options.

Learning not only from best practices but also failures

A final point is the need to learn from failures. And to celebrate them! Transformative innovation is not an easy process, and it requires organizations to take risks and learn from their mistakes, not only from best practices. By learning from past failures, we can continue to drive transformative innovation in traditional sectors. It is about

Written by Frédérique de Lange ©TheNTWK

Want to keep the discussion going? Challenge others to explore further avenues of thought using the following question:

• How can we encourage more cross-sector partnerships in our industries?

• In addition to community building, what else is essential to catalyze transformative innovation?

• How can we encourage more radical outsiders to participate and collaborate with traditional sectors for transformative innovation?

• How can we transform regulation while regulators remain in control?

• How can we decentralize power across industries?