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So CX + DX needs IX for the transformations we need

Paul Hobcraft , Agility Innovation Specialists
16 Apr, 2019
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We are on the brink of a transformation, a global one that connects us into information, knowledge, and insights in ever-powerful ways. thanks to the digital internet. We are also exploring the use of Artifical Intelligence (AI) more than ever.

BCG suggests that nine out of ten companies in their recent surveyfor the report “The Most Innovative Companies 2019” are investing in AI. BCG also suggests that 30% of those surveyed believe AI will have the greatest impact of any innovation area on their industry over the next three to five years.

We are also seeing the emergence of platforms and ecosystems radically changing how we collaborate and invent, design, solve issues from a changing shift in cooperation understanding. Platforms are fueling new business initiatives as they learn to engage across the whole value chain spectrum, from customer to delivering back the needs of that customer.

It is our technology being applied through new approaches that are galvanizing the new potential within innovation.

As we learn to orchestrate the underlying technologies, learn to build helpful applications, establish these software platforms this is beginning to become attractive as a new place for integrating, exchanging and collaborating. There is the talk of “the network effect” (Metcalfe’s Law) whereas more participants engage on platforms or in ecosystems and exchange, the more the value goes up and the community participating gets increasingly more out of the value of the “combined” thinking, data and insights. It has huge potential to generate new levels of innovation, ones that are more connected, more seamless and more what the customer wants.

So we come to CX + DX, it needs IX

Customer experience (CX) is driving change. The customer is expecting more value in the products or services they buy. They expect connected products, ones that are seemingly simple to then but highly complex to bring together. They will pay for this if the solutions offered are in their “sweet spot”.

To achieve this industry has to go through this digital transformation (DX) that is underway. Adapting a product to the need of one person’s preference has been pushing the final adaptation to that persons need up the chain in production. I wrote recently (here)

“This for me will center around developing the complete suite of transparency between product development and manufacturing and communicating this “connected” story. This is the connected need of IIoT to achieve. The information and knowledge source that connects the customer demand with the delivery of their need with their custom solution. This has been promoted as the new “experience economy”.by Dassault’s CEO Barnard Charles. He suggests this is the new economy that drives the value of the usage first, as opposed to the value of the product or the things we produce, or even the services we provide” He feels the center of gravity in value creation is taking place to the emphasis on usage as paramount to serve. This makes sense to me.”

So we have the CX and DX being worked upon. What we need now is the Innovation Transformation (IX). I have written consistently on the need for the innovation to be re-equipped to deal with the digital changes coming towards us. Today this is utterly inadequate in dealing with all the change or transformation currently underway. Just, if you have time take a read of my post here of “We require a shift of Innovation Management Solution Providers” as to give you a more detailed background as to why there is such a need. We need ecosystems for innovation to thrive and prosper in faster ways.

I mentioned in that post “Innovation software is no different from the tides of change sweeping industries, digital transformation is opening up the connection possibilities outside single organizations. No one organization can keep pace, or has enough resources, or can cover off solutions that solve “universal” problems, or even ones in a diverse, huge Corporation collaborating across a global business, where functional groups involved are far more diverse than ever before”

This is becoming the nature of the present constraints. We need digital innovation

We can keep moving towards CX and apply DX but unless we recognize and make significant changes in IX we will fail to get the impact we are looking for or the customer is expecting. The flow of insights, of information and knowledge, gets caught up in such a log jam as the innovation system is not designed for such a force of “flow-through” or set up for such co-innovation needed. We lack many innovation open and interoperable tools or systems to speed up the creation process. We are caught in an age of the single solution struggling to make the connections to the new age of innovation.

Innovation actually needs to feed business systems and push all working within the design of solutions the ability to drive outcomes.  This is why the value of digital platforms and ecosystems will gain in the urgency of getting the whole innovation system fit for the 21st century, otherwise, innovation will remain stilted, disappointing and struggling to project what it stands for:  “advancing what we have with better solutions that solve customers problems”

We need this dynamic innovation process.

Otherwise, CX + DX sounds great but if it does not have IX the returns on investment or the growth rates required for this will never materialize. Let’s not forget this IX, it needs to be far more central in the equation today.

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