Subscription Models Can Inspire Innovation in Stagnant Industries
Excerpts from the article by Serenity Gibbons on SFGATE
Innovation has taken on renewed importance for many businesses. In fact, McKinsey & Company found that more than 70 percent of senior executives expect innovation to be a top driver of growth for their businesses. However, 65 percent of those same executives lack full confidence in their ability to fuel innovation.
I've interviewed 100's of companies via the NAACP and found people and culture are two important factors in driving innovation, most companies don’t have the structure in place to identify and capitalize on innovation opportunities. An earlier McKinsey & Company survey found that 62 percent of executives said their companies used multiple models to try to structure their innovation efforts.
That type of approach often results in haphazard efforts that are difficult to track and even harder to replicate. By siloing innovation efforts and focusing on products and services rather than customers, companies lose their focus and fail to keep a pulse on audience needs. Instead, businesses should take a step back to develop a comprehensive model that puts the customer at the center and enables innovation to develop around him. Some experts think they’ve already found that in the subscription model.
Read the full article on SFGATE