Innovation

What’s new and next in innovation?

Whilst creativity is about divergent thinking – opening up to explore new perspectives, make new connections, generate more ideas – innovation is about convergent thinking – evaluating the best ideas, focusing on making them practical and profitable, then making them happen effectively.

In my book “Creative Genius” we explore Leonardo da Vinci’s 8 principles, then apply them to today’s business world: being curious, exploring margins, reframing context, visualisation, resolving paradox, balancing art and science, making new connections and being alive.

Innovation is no longer confined to R&D labs or incremental product updates. In today’s fast-moving and uncertain world, innovation is the engine of survival and sustainable growth. Businesses everywhere—from startups to global corporations—are embracing innovation in broader, bolder ways: transforming how they operate, how they create value, and how they build resilient futures.

Rather than relying solely on technological breakthroughs, today’s most innovative companies adopt a systems view—innovating not just in what they offer, but in how they work, who they work with, and why they exist. In this context, innovation becomes a capability, not a department. It’s embedded in culture, strategy, operations, and leadership.

The Reinvention Mindset

In today’s fast-changing, hyper-connected world, innovation is no longer a one-off initiative—it’s a continuous, organization-wide capability. The pace of technological advancement, shifting customer expectations, and competitive disruption demands relentless innovation not just in products, but in business models, customer experiences, and even core identity. To survive and thrive, companies must now innovate at the speed of change.

The next frontier of innovation is not just about invention—it’s about transformation. The most forward-thinking companies are reimagining their industries, creating new categories, and rewriting the rules. They’re embracing platforms, ecosystems, and purpose-driven design to stay ahead. Business leaders are no longer asking, “What can we improve?” but “What should we reinvent?”

A key enabler of this reinvention is a culture of fast experimentation and continuous learning. Innovation thrives in environments where teams are empowered to test ideas rapidly, fail safely, and scale what works. Agile methodologies, lean startup principles, and design thinking are being adopted far beyond tech, allowing even traditional enterprises to move faster and respond more fluidly to market signals. Speed, not size, is becoming the ultimate competitive advantage.

Equally transformative is the power of emerging technologies—particularly AI, machine learning, digital twins, generative design, and extended reality. These tools are revolutionizing how businesses design products, optimize operations, and interact with customers. They enable hyper-personalization, predictive service delivery, and immersive brand experiences. Companies like NVIDIA, Adobe, and Shopify are already leveraging AI to accelerate product development and customer engagement.

Innovation is also moving upstream—into strategy. Organizations are using foresight tools, scenario planning, and data modeling to anticipate market shifts and build future-ready portfolios. This shift is fostering a new wave of business model innovation: subscription platforms, outcome-based services, decentralized ownership, and circular economy systems are redefining value creation.

Global examples abound. India’s Jio reinvented mobile access and is now redefining digital commerce. Rappi evolved from delivery to an all-in-one lifestyle platform. In Africa, mPharma is reengineering pharmaceutical supply chains. In each case, innovation is not an add-on—it’s the core strategy.

In this era of constant flux, innovation must be embedded, inclusive, and intentional. The companies that lead tomorrow will be those that relentlessly challenge assumptions, harness emerging tools, and create entirely new ways to serve people and society.

10 types of innovation

After evaluating thousands of practical business innovations over recent years, researcher Jay Doblin found that  that most breakthroughs don’t necessarily stem from engineering inventions or rare discoveries. Instead, he categorised innovations within 10 distinct dimensions.

He then sought to understand which innovation create most value. First he looked at where most companies focus their innovation effort – not surprising, this focused on the offering (product, systems and  service). However far greater value was created through innovation in the business configuration (profit model and network), and to some extent, experience.


Here are examples of each type of innovation:

  • Profit model: How you make money … the Financial Times pivoted from its traditional ad-driven media model to digital user subscriptions. Others: Gillette, Hilti.
  • Network: Connections with others to create value … ARM, the world’s leading semiconductor business doesn’t make any thing, but licenses its designs to a network of partners to make with much great agility. Others: Target, Michael Graves
  • Structure: Alignment of your talent and assets … Google’s 20% rule allows employees to work on side projects, that led to the creation of Gmail and Google News. Others: WL Gore, Zappos
  • Process: Signature of superior methods for doing your work … McDonald’s franchises were encouraged to develop and launch their own food items, leading to wins like the Egg McMuffin. Others: Toyota, Zara

In the case of McDonald’s, the franchisee insight that led to the introduction of the Egg McMuffin spearheaded the company’s entire breakfast offering, which now accounts for 25% of revenues. Breakfast is also now the company’s most profitable segment.

  • Product: Distinguishing features and functionality … Spotify created a seamless music streaming product that hugely outperformed competitors in terms of speed, responsiveness and user experience. Others: Dyson, Corning.
  • Product system: Complementary products and services … Apple built an extensive ecosystem of products that work together, creating additional value for users. Others: Oscar Meyer, Mozilla.

Apple has a reputation for innovation, but the product ecosystem highlighted above is an underappreciated piece of the company’s strategy. By putting thought into the ecosystem of products—and ensuring they work together flawlessly—additional utility is created, while also making it harder for customers to switch away from Apple products.

  • Service: Support and enhancements that surround your offerings … Amazon Prime comes with free and fast delivery, which can have products to your home within 2 hours in some urban areas. Others: Singapore Airlines, Timpsons.
  • Channel: How your offerings are delivered to customers and users … Nespresso locks in customers with its Nespresso Club as well as through ongoing sales of  its own single use coffee pods. Others: Birchbox, Nike.
  • Brand: Representation of your offerings and business … Patagonia’s brand activism and links to environmental causes gives it a unique position in the outdoor apparel market. Others: Intel, Virgin.
  • Customer engagement: Distinctive interactions you foster … Mercedes launched an augmented reality owner’s manual that replaces its traditional guides, personalised with driver and car data. Others: Blizzard, Disney.

In the early days of the internet, online shipping was precarious at best—but Amazon’s introduction of Amazon Prime and free and fast shipping for all members has transformed its online retail. Executing on such a promise was no small task, but today there are 225 million users of Prime worldwide, receiving their deliveries within two hours in urban areas.

Innovation is not easy

Innovation is critical for business survival, but it’s also harder than ever to execute effectively. One major challenge is short-termism: companies often prioritize quarterly results over long-term bets, making them risk-averse and resistant to self-disruption. This is reinforced by legacy thinking and siloed structures, where innovation is isolated from core operations, slowing down speed and impact.

Cultural resistance to change is another major barrier. Many organizations lack a safe space for experimentation, where failure is seen as a learning tool. At the same time, talent shortages—especially in AI, digital, design, and sustainability—leave firms without the capabilities needed to build future-ready solutions.

Technologically, companies are overwhelmed by emerging tools like AI, robotics, and IoT, but often lack the strategic focus or systems integration to use them effectively. Innovation without direction or user focus leads to wasted investment.

Externally, businesses face growing regulatory pressure and ethical scrutiny, particularly in areas like data privacy and artificial intelligence. They must also innovate in a world of climate urgency and limited resources, rethinking products, supply chains, and business models to be sustainable by design.

Meanwhile, disruption from agile startups and tech platforms continues to erode traditional advantages. Many incumbents struggle to respond quickly enough, especially without a clear innovation strategy that aligns with purpose, growth, and impact.

In short, innovating today isn’t just about having ideas—it’s about transforming culture, strategy, and systems to continuously adapt and reinvent.

Building an innovation culture

Building a culture of innovation is not about launching a few creative projects—it’s about embedding curiosity, experimentation, and agility into the DNA of your organization. It starts at the top: leaders must model openness to change, encourage bold thinking, and celebrate learning from failure. Innovation-friendly cultures thrive when leaders shift from control to empowerment, giving teams the autonomy to explore, test, and iterate.

A key enabler is psychological safety—an environment where employees feel safe to voice new ideas, challenge the status quo, and take intelligent risks without fear of blame. Companies like Google and Pixar have shown how this fosters breakthrough thinking.

Breaking down silos and promoting cross-functional collaboration is also vital. Innovation flourishes when diverse perspectives converge—combining design, data, customer insight, and technology. Encourage teams to work in agile, project-based formats and create spaces—both physical and digital—designed for experimentation.

Reward systems must evolve too. Recognize not just successful outcomes, but the behaviors that drive innovation: curiosity, initiative, resilience, and collaboration. Allocate time and resources for exploration, such as “innovation sprints” or protected time for side projects.

Finally, connect innovation efforts to a clear purpose and customer need. Employees are more motivated to solve problems that matter. Equip them with the tools, training, and permission to think creatively and act boldly.

In short, a culture of innovation is built by leaders, lived by teams, and sustained by systems that turn big ideas into everyday practice.

The Innovator’s Toolkit

To unlock innovation across these dimensions, leading companies use a wide range of creative and strategic tools. We help you choose the right approach  for your challenge, and facilitate the process to help you turn your best ideas into practical and profitable innovations. The best innovation tools and techniques include:

1. Design Thinking

Design thinking is a human-centered, iterative approach to problem-solving that integrates empathy, ideation, prototyping, and testing. It focuses on deeply understanding user needs before developing solutions.

  • Examples: IBM (USA) embraced design thinking across its global operations to improve product development and customer experience. It trained over 100,000 employees and embedded multidisciplinary design teams into every project. Bank of America used design thinking with IDEO to create “Keep the Change,” a savings program that became a national success.
  • Implementation: Design thinking starts with user research (empathy), followed by brainstorming (ideation), building models (prototyping), and user feedback (testing). IBM institutionalised it via “IBM Design Studios,” influencing everything from AI interfaces to enterprise software.
  • Impact: Design thinking accelerates innovation and aligns products with real customer needs. IBM reduced time-to-market by 33% and saw 300% ROI on design-centric initiatives. It fosters cross-functional collaboration, creativity, and customer loyalty.

2. Blue Ocean Strategy

Blue Ocean Strategy focuses on creating uncontested market space by shifting away from head-to-head competition. Instead of beating rivals, companies innovate by redefining value—eliminating industry norms and creating entirely new demand.

  • Example: Cirque du Soleil (Canada) created a blue ocean by combining circus arts with theatre—eliminating animals and cutting traditional costs while adding new value through storytelling and music. Nintendo (Japan) used Blue Ocean Strategy to launch the Wii, targeting casual gamers instead of competing head-on with Sony and Microsoft.
  • Implementation: Key tools include the Strategy Canvas and Four Actions Framework (Eliminate, Reduce, Raise, Create). Companies identify factors to rethink in their industry and redesign value propositions accordingly.
  • Impact: Cirque du Soleil grew to a billion-dollar enterprise in a declining circus industry. Nintendo’s Wii became the best-selling console of its generation. Blue Ocean Strategy allows firms to escape price wars and reshape entire categories through creative repositioning.

3. Lean Startup

The Lean Startup methodology focuses on rapid experimentation, customer feedback, and iterative development to build viable products with minimal waste.

  • Examples: Dropbox (USA) launched with a simple video prototype that tested demand before building the product. Zalando (Germany) uses lean startup principles in its internal “Zalando Innovation Lab” to test and iterate on AI-driven fashion tools.
  • Implementation: Core tools include MVPs (minimum viable products), A/B testing, and build-measure-learn loops. Large companies like GE (USA) applied Lean Startup to industrial product lines, creating its “FastWorks” program to speed innovation cycles.
  • Impact: This approach reduces failure risk, speeds up feedback loops, and prioritizes real customer demand. GE shortened product cycles by 50%, while Dropbox saved millions by validating need before development. It has become foundational for digital product innovation worldwide.

4. Business Model Canvas

The Business Model Canvas  is a strategic tool that helps teams visualise, design, and innovate business models on a single page. It breaks down nine core building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

  • Example: Nespresso (Switzerland) used the BMC to rethink its coffee business—shifting from B2B commodity sales to a direct-to-consumer model via proprietary capsules, machines, and boutique stores. Airbnb (USA) also mapped and refined its business model using the BMC to align key partnerships (hosts), value propositions (affordable travel), and channels (platform).
  • Implementation: Teams typically use large printouts or digital whiteboards to brainstorm, analyze gaps, test assumptions, and prototype new business models. It is often used in startups, accelerators, and corporate strategy sessions.
  • Impact: The BMC simplifies complex business models and helps cross-functional teams align quickly. Nespresso grew into a multibillion-dollar business with a premium, recurring revenue model. Airbnb scaled globally by continuously refining its canvas to optimize trust, efficiency, and scale.

5. Agile Sprints

Agile sprints are short, iterative cycles—usually 1–4 weeks—used to develop, test, and improve products quickly based on customer feedback. Originating in software development, agile sprints are now widely used across industries for product, service, and strategy innovation.

  • Example: Spotify (Sweden) uses agile sprints within cross-functional “squads” to continuously improve its music streaming experience. ING Bank (Netherlands) reorganized its entire workforce around agile principles, with sprints driving product development and customer experience upgrades.
  • Implementation: Agile teams set sprint goals, build MVPs, test with users, review outcomes, and iterate. Daily stand-ups, sprint retrospectives, and backlog grooming are standard rituals.
  • Impact: Agile sprints accelerate time-to-market, improve alignment with customer needs, and foster a culture of collaboration and adaptability. ING Bank saw faster product rollouts and improved employee satisfaction. Spotify scales agile across hundreds of teams to maintain speed and innovation at scale.

6. Frugal Innovation

Frugal innovation, sometimes called “constraint-based innovation,” focuses on creating more affordable products and services by minimizing resource use and complexity. It often targets underserved or price-sensitive markets, especially in emerging economies. Instead of expensive high-end features, frugal innovation emphasizes core functionality, simplicity, and local relevance.

  • Example: Tata Motors revolutionized the Indian auto market with the Tata Nano, an ultra-low-cost car designed for affordability and efficiency. GE Healthcare developed a portable, low-cost ECG machine for rural healthcare in India, reducing costs drastically while maintaining clinical utility. In Kenya, M-Pesa created a mobile money platform enabling millions without traditional banking access to perform financial transactions easily.
  • Implementation: Frugal innovation requires deep understanding of user needs, local context, and constraints. Companies typically co-create with local communities and adopt modular, adaptable designs. They also streamline manufacturing and distribution to keep costs low. Reverse innovation often occurs, where solutions developed in emerging markets are adapted for developed markets.
  • Impact: Frugal innovation expands access to essential products and services, drives inclusive economic growth, and fosters sustainable development. Companies that succeed in this approach often unlock large new customer segments and build strong brand loyalty. It challenges traditional R&D models by emphasizing affordability and practicality.

7. LEGO Serious Play

LEGO Serious Play is a facilitated method where participants use LEGO bricks to build metaphorical models representing ideas, challenges, or systems. It fosters creative thinking, team alignment, and problem-solving through hands-on exploration.

  • Example: NASA (USA) has used LSP to facilitate team communication and strategic planning. Google (USA) and Roche (Switzerland) have applied it in leadership development and innovation workshops.
  • Implementation: In structured sessions, participants build LEGO models that represent abstract ideas (e.g., “our ideal future customer journey”) and then explain them to others. Facilitators guide reflection, dialogue, and iteration.
  • Impact: LSP enhances psychological safety, deepens understanding, and surfaces hidden assumptions. Roche improved cross-functional collaboration in drug development. It’s particularly powerful for complex or ambiguous problems, fostering insights that traditional discussions miss.

8. Innovation Labs

Innovation labs are dedicated units within organizations that explore new technologies, business models, or customer experiences. They provide protected space, funding, and talent to experiment outside traditional business constraints. Of course, innovation labs can also be superficial and full of gimmicks. Bean bags and open spaces scream “let’s be creative”, therefore the lab is more a dedicated environment to collaborate, and use many of the other structured approaches.

  • Example: BMW’s Startup Garage (Germany) connects the company with early-stage startups to co-develop future mobility solutions. L’Oréal (France) runs multiple global labs (e.g., the Technology Incubator) to experiment with AI-driven beauty products and personalized cosmetics.
  • Implementation: Labs are structured as internal startups or “sandboxes,” often with cross-functional teams. They may focus on horizon scanning, prototyping, or launching spin-offs. Success is measured by learning velocity, pilot outcomes, or ROI from ventures.
  • Impact: Innovation labs allow organizations to derisk experimentation, attract talent, and explore bold ideas. L’Oréal’s lab-developed UV Sense, the world’s smallest wearable UV sensor. BMW scouts 500+ startups annually through its lab, accelerating product and process innovation.

9. Corporate Venture Building

This approach involves companies launching new startups internally or partnering with entrepreneurs to build businesses from scratch. Unlike traditional VC investments, venture building embeds innovation in-house.

  • Examples: Enel (Italy) launched Enel Innovation Hubs to build and invest in energy and cleantech startups aligned with its transition goals. Bosch (Germany) created Bosch Venture Capital to back and incubate mobility and smart home startups. Standard Chartered (UK/Singapore) built “SC Ventures” to create fintech startups internally.
  • Implementation: Firms establish venture studios or innovation labs, often with dedicated funding and autonomy. Ideas are rapidly prototyped and spun off into stand-alone ventures if validated.
  • Impact: Venture building enables large companies to diversify revenue, enter new markets, and attract entrepreneurial talent. Enel has launched over 100 innovation partnerships. SC Ventures created over a dozen digital ventures, one of which—Mox Bank—now serves tens of thousands of customers in Hong Kong.

10. Open Innovation

Open innovation encourages organizations to look beyond their boundaries to source ideas, technologies, or solutions from external partners—startups, universities, customers, or even competitors.

  • Example: Procter & Gamble (USA) pioneered open innovation with its “Connect + Develop” program, sourcing over 50% of innovations from external partners. Unilever (UK/Netherlands) collaborates with startups through its Foundry platform. Haier (China) uses an open ecosystem model, engaging users and partners in real-time product development.
  • Implementation: Open innovation methods include crowdsourcing, hackathons, innovation challenges, technology scouting, and joint ventures. Digital platforms now enable faster matchmaking between corporates and innovators.
  • Impact: Open innovation dramatically increases speed and breadth of innovation. P&G accelerated time to market while cutting R&D costs. Haier’s “ecosystem micro-enterprises” have become a global benchmark for agile, user-led innovation.

11. Platform Innovation

Platform innovation is a form of open innovation, creating open infrastructures that enable external users—customers, developers, or partners—to co-create value. It transforms businesses from product providers to ecosystem orchestrators.

  • Examples: Apple (USA) transformed from a computer maker to a global platform with the App Store. Alibaba (China)evolved from a trading website into a platform ecosystem spanning e-commerce, finance (Alipay), logistics, and cloud services. Shopify (Canada) empowers millions of small merchants through its retail platform and plug-in app ecosystem.
  • Implementation: Companies build APIs, developer kits, and network tools to enable third-party innovation. The focus shifts from controlling products to facilitating interactions—between buyers, sellers, service providers, and creators.
  • Impact: Platforms benefit from network effects, compounding value as more participants join. Apple’s App Store has generated over $300B for developers. Shopify’s revenue grew over 50x in a decade by enabling others to build on its infrastructure. Platform innovation is a core engine for scalability and resilience.

12. Regenerative Innovation

Regenerative innovation moves beyond sustainability to actively restore and regenerate social, ecological, and economic systems. It draws from nature’s principles—circularity, interdependence, and resilience—to design businesses that create net-positive impact.

  • Example: Interface (USA), a global carpet tile manufacturer, pioneered this model by transforming its supply chain to eliminate negative environmental impact. It now uses bio-based materials and carbon-negative tiles. Patagonia (USA) integrates regenerative practices in sourcing (e.g. regenerative organic cotton), repair services, and circular product models.
  • Implementation: This approach starts with systems thinking and lifecycle analysis. Companies identify how to redesign processes, materials, and business models to restore ecosystems or communities—often through circular economy principles, regenerative agriculture, and stakeholder capitalism.
  • Impact: Interface cut its carbon footprint by 96% and now produces carbon-negative flooring. Patagonia’s regenerative sourcing builds healthier soils while increasing biodiversity. Regenerative innovation not only future-proofs businesses but also unlocks new growth through purpose-driven products.

13. Behavioural Innovation

Behavioral innovation leverages insights from psychology, behavioral economics, and neuroscience to design products, services, and systems that better align with how people actually think and act—not how we assume they do.

  • Example: Google (USA) uses behavioural nudges in its workplace and products—such as auto-suggesting shorter email responses or encouraging healthy food choices in cafeterias. Nudgestock (UK) and BIT (Behavioural Insights Team)apply behavioural science to design policy and corporate change strategies. Vitality (South Africa/UK) uses behavioral economics in its insurance model, offering rewards for healthy behavior.
  • Implementation: Behavioral innovation involves deep user research, A/B testing, and cognitive bias mapping. Techniques include defaults, framing, nudges, and gamification. Many companies now hire behavioral scientists or partner with agencies to embed this thinking.
  • Impact: Behavioral innovations increase user adoption, reduce friction, and influence positive habits. Vitality saw reduced healthcare costs and higher customer engagement. Behavioral insights helped Google improve productivity, reduce waste, and increase user trust across its platforms.

14. Bio-Inspired Innovation (Biomimicry)

Bio-inspired innovation draws ideas from nature’s 3.8 billion years of R&D to solve human challenges. It applies biological principles—like self-healing, swarm intelligence, or photosynthesis—to product design, architecture, and systems thinking.

  • Examples: Sharklet Technologies (USA) mimicked shark skin patterns to create antibacterial surfaces for hospitals. Airbus (Europe) designed fuel-efficient aircraft wings based on bird flight. Lilium (Germany) uses butterfly-inspired wing dynamics in its electric air taxis.
  • Implementation: Companies collaborate with biologists and designers to translate biological functions into engineering solutions. Innovation labs use nature as a model, measure, and mentor—observing ecosystems to inspire new approaches to efficiency, resilience, or sustainability.
  • Impact: Bio-inspired innovation enables breakthroughs in energy efficiency, performance, and environmental compatibility. Sharklet reduced bacterial growth without chemicals. Airbus cut fuel use by 15%. It often leads to novel, patentable IP that gives a distinct market advantage.

15. Reverse Innovation

Reverse innovation refers to innovations developed first in emerging or resource-constrained markets and later adapted or scaled to developed markets. This approach challenges the traditional flow of innovation, where new products or services typically originate in developed countries. Instead, companies innovate by addressing specific constraints or needs in emerging markets, creating frugal, affordable, and locally relevant solutions that later prove valuable globally.

  • Examples: GE Healthcare’s portable low-cost ECG machine was designed initially for rural India but later found applications in developed countries for mobile health diagnostics. Procter & Gamble developed a water-purification product in India that was later adapted for use in the US. Tata Motors’ Nano car, designed as an ultra-affordable vehicle for India, influenced compact car design thinking globally.
  • When and How: Companies employ reverse innovation when targeting emerging markets where customer needs differ significantly from developed markets. They invest in local R&D, collaborate with local partners, and embrace frugal innovation principles. After success, they adapt these solutions to developed markets, often at a premium or to new customer segments.
  • Impact: Reverse innovation enables companies to expand their global reach, reduce costs, and drive inclusive growth. It disrupts conventional innovation models and encourages greater sensitivity to diverse market needs. It can also create competitive advantages by identifying growth opportunities overlooked by others.

16. Cross-Pollination

Cross-pollination is the deliberate transfer of ideas, knowledge, or technologies between different industries, disciplines, or cultures to spark innovation. It leverages diverse perspectives to combine concepts in novel ways, often leading to breakthrough products or services.

  • Examples: IDEO, the global design firm, uses cross-pollination by bringing together multidisciplinary teams to tackle client challenges, leading to innovative solutions in healthcare, consumer products, and more. Tesla applies automotive and software industry insights, blending electric vehicle technology with advanced software to revolutionize mobility. Johnson & Johnson incorporates biotech advances from academia into its consumer healthcare products.
  • When and How: Organizations adopt cross-pollination through cross-functional teams, partnerships with external experts, or exposure to diverse industries via conferences and workshops. Open innovation platforms and innovation hubs also facilitate this exchange.
  • Impact: Cross-pollination accelerates creativity, reduces innovation risk, and opens new market opportunities. It fosters adaptability and resilience by integrating knowledge across domains.

17. Crowdsourcing

Crowdsourcing harnesses the collective intelligence and creativity of large groups, often external to the organization, to solve problems, generate ideas, or fund projects. It democratizes innovation by tapping into diverse expertise and perspectives.

  • Examples: LEGO Ideas invites fans worldwide to submit and vote on new product concepts, some of which become official sets. NASA runs open innovation challenges to crowdsource solutions for complex space problems. Threadless uses crowdsourcing to design T-shirts, engaging customers in the creative process.
  • When and How: Companies use crowdsourcing during ideation, problem-solving, or even funding stages. Online platforms enable global participation. Proper challenge framing and incentives motivate contributors.
  • Impact: Crowdsourcing reduces R&D costs, accelerates idea generation, and enhances customer engagement. It builds community loyalty and accesses niche expertise that internal teams may lack.

18. Hackathons

Hackathons are intensive, time-bound collaborative events where teams rapidly prototype solutions to defined challenges. Like agile sprints, but even faster and collaborative, they were originally popular in software development, they now span various industries to foster creativity, teamwork, and fast innovation cycles.

  • Examples: Facebook started as a product of a student hackathon. IBM hosts hackathons focused on AI and blockchain, generating novel enterprise solutions. Barclays runs hackathons to explore fintech innovations and improve customer experiences.
  • When and How: Organizations host hackathons to stimulate creativity, recruit talent, or solve pressing business problems. They set clear challenges, provide resources, and encourage multidisciplinary teams. Outcomes often include prototypes, proofs of concept, or fresh ideas for development.
  • Impact: Hackathons promote a culture of innovation, rapid learning, and cross-team collaboration. They uncover new talent, fast-track solution development, and foster employee engagement and empowerment.

19. Digital Twins

Digital twins are dynamic virtual replicas of physical products, processes, or systems. They use real-time data, simulations, and AI to mirror, analyze, and optimize their real-world counterparts.

  • Examples: Siemens (Germany) uses digital twins in factory automation to model machines and workflows before building them. General Electric (USA) applies digital twins to jet engines, wind turbines, and power plants to predict maintenance needs and improve efficiency. Unilever (UK/Netherlands) uses digital twins in manufacturing to cut waste and energy use.
  • Implementation: Digital twins require IoT sensors, cloud computing, and machine learning models. They’re often applied in manufacturing, logistics, energy, and healthcare to run simulations, detect faults, and inform decision-making.
  • Impact: Siemens achieved a 20–30% increase in manufacturing efficiency. GE reduced unplanned downtime in its turbines by 25%. Digital twins save costs, boost productivity, and accelerate innovation by allowing companies to experiment safely in virtual environments.

20. Tapestry (Narrative-Based Foresight)

Tapestry is an emerging innovation method that uses storytelling and narrative synthesis to explore future possibilities and drive strategic innovation. It weaves together weak signals, emerging trends, and qualitative insights into rich, plausible futures to help organizations imagine new directions.

  • Example: Nesta (UK) uses narrative foresight to imagine future scenarios for public policy and social innovation. IKEA’s SPACE10 lab (Denmark) applies storytelling methods to explore “everyday life in 2030,” using speculative design and fiction to provoke new concepts for urban living.
  • Implementation: Tapestry involves gathering diverse data (e.g., interviews, ethnographies, trend scans), and weaving it into cohesive future narratives. These are then used in workshops or strategy sessions to guide innovation, spot opportunity spaces, and stress-test current plans.
  • Impact: Tapestry makes the future feel real—helping teams go beyond data to uncover human needs, values, and desires. It enables more inclusive and empathetic innovation. IKEA has launched products inspired by speculative scenarios, like space-saving furniture for small urban homes.

21. Decentralized Innovation

Decentralized innovation disperses the innovation process across independent teams, locations, or community-led structures, rather than relying on a centralized R&D unit. This approach leverages diverse perspectives, local insights, and autonomous decision-making to accelerate creativity and market adaptation. A new frontier of decentralized innovation involves blockchain-enabled Decentralized Autonomous Organizations (DAOs), where governance and innovation are community-driven and transparent.

  • Examples: Haier, the Chinese appliance giant, pioneered a “micro-enterprise ecosystem” where small autonomous teams innovate independently to rapidly meet customer needs, enhancing agility and responsiveness. KlimaDAO uses blockchain technology to decentralize the management of carbon credits, allowing community stakeholders worldwide to participate in climate action innovation transparently and democratically. MakerDAO is a decentralized finance platform innovating with autonomous governance to create stablecoins and financial products without centralized intermediaries. This open, community-led model fosters rapid iteration and broad participation.
  • Implementation: Decentralized innovation often requires organizational shifts to empower local teams or communities with decision rights. Digital collaboration tools and open innovation platforms enable distributed teams and stakeholders to co-create efficiently. In blockchain-enabled DAOs, smart contracts automate governance, ensuring transparent, rule-based decision-making by token holders or participants. Cross-unit alignment remains critical to maintain strategic coherence.
  • Impact: Decentralized innovation accelerates development cycles, enhances local market fit, and taps diverse expertise. DAOs like KlimaDAO and MakerDAO demonstrate how blockchain can democratize innovation, increasing trust and inclusivity while reducing bottlenecks. Haier’s micro-enterprises foster a culture of intrapreneurship that drives rapid product launches and customer responsiveness. This approach helps organizations navigate complex, rapidly evolving markets by distributing innovation capacity broadly.

22. Continuous Reinvention

Continuous reinvention is a dynamic innovation approach where organizations consistently rethink and transform their business models, strategies, products, and operations to stay relevant and competitive in fast-changing markets. Unlike one-off innovation efforts, it embraces ongoing adaptation as a core capability, responding proactively to emerging technologies, customer needs, and market shifts.

  • Example: IBM is a classic example of continuous reinvention. Founded as a hardware manufacturer, IBM shifted focus multiple times—from mainframes to software, then services, and now to AI and cloud computing. Netflix transformed from DVD rental to streaming, and now into content production and global distribution. Microsoft reinvented itself from software licensing to cloud services and subscription models.
  • Implementation: Continuous reinvention requires a culture open to change, strong leadership vision, and flexible organizational structures. Companies invest heavily in strategic foresight, scenario planning, and capability building. They encourage experimentation, learn rapidly from failures, and pivot as necessary. Agile methodologies, innovation labs, and cross-functional teams support ongoing transformation.
  • Impact: Organizations practicing continuous reinvention sustain long-term growth and market leadership despite disruption. IBM’s transformations have kept it a tech powerhouse for over a century. Netflix’s adaptability made it a dominant global entertainment platform. Microsoft’s pivot to cloud earned it renewed growth and valuation. Continuous reinvention helps companies avoid obsolescence, better anticipate trends, and unlock new business opportunities.

23. AI-Powered Co-Creation

AI-powered co-creation refers to the use of artificial intelligence not just to automate tasks, but to collaborate creativelywith humans in real time. It enables teams to generate, refine, and test ideas faster—blending human intuition with machine intelligence to spark breakthrough innovations.

  • Example: BMW (Germany) uses AI to co-design car interiors by analyzing millions of combinations of materials, lighting, and customer preferences. Adobe (USA) offers AI tools like Firefly and Sensei that let designers auto-generate images, layouts, and marketing content. Spotify (Sweden) employs AI to co-create personalized playlists and mood-based music experiences, tailored to individual users in real time.
  • Implementation: This approach integrates AI into the creative process through generative tools (like ChatGPT, DALL·E, or Runway), machine learning design platforms, and collaborative interfaces. It’s used across product development, branding, R&D, and even storytelling. Companies often embed AI into design studios or product teams, or co-develop solutions with startups and platforms.
  • Impact: AI-powered co-creation drastically reduces time to market. BMW shortens its design cycle from months to weeks. Adobe customers report productivity boosts of 30–50% using AI-assisted creative tools. It also democratizes innovation—giving non-experts access to advanced tools for ideation and execution. Spotify’s AI enhances engagement by making every experience feel unique.

AI also unlocks new forms of creativity—enabling the discovery of options humans might overlook and encouraging iterative, data-driven experimentation. As AI grows more multimodal (text, image, audio, video), its role in collaborative innovation will continue to expand—changing not only how we innovate, but who gets to innovate.

The world’s most innovative companies

Superfast-gaming chips and fat-busting superdrugs, asteroid-chasing rockets and carbon-capturing technologies, 4 day working weeks and chess reinvented as a reality TV game, health-enhancing fashions and the rebirth of the hairy mammoth. Nvidia is transforming tech, while Novo Nordisk innovates healthcare, KinetXchanges the space race, while Climeworks eliminates carbon.

The most innovative companies don’t just chase ideas—they build systems of innovation. They embed it into culture, make it everyone’s responsibility, and balance bold experimentation with disciplined execution. Key traits of future innovation leaders include:

  • Bold ambition: Tackling big challenges, like climate or health, not as constraints, but as sources of opportunity.
  • Strategic foresight: Having a future orientation, forwards radar, sensing beyond existing domains
  • Customer obsession: Continuously listening, observing, and co-creating with end users.
  • Ecosystem fluency: Knowing how to partner, collaborate, and build platforms.
  • Cultural agility: Empowering teams, embracing uncertainty, and rewarding curiosity.
  • Enlightened leadership: Commitment, curiosity and courage of leaders to create the future, while delivering today.

Which are the innovative companies around the world that inspire you, and what can you learn from them?

Apple

Apple is widely regarded as one of the world’s most innovative companies, largely due to its relentless focus on design, user experience, and ecosystem integration. Its approach to innovation is rooted in a design-driven philosophy, where hardware, software, and services are seamlessly integrated to deliver intuitive, elegant, and highly functional products.

  • Innovation approach: Apple’s innovation process emphasizes deep user empathy, iterative prototyping, and secrecy. The company invests heavily in R&D but tightly controls product development cycles to maintain a competitive edge. Cross-functional collaboration among design, engineering, and marketing teams ensures cohesiveness in product experiences. Apple also leverages vertical integration, designing its own chips (like the M1 and A-series processors) and operating systems to optimize performance and security.
  • Example Projects: iPhone revolutionized the smartphone industry with a capacitive touchscreen, app ecosystem (App Store), and constant iterative improvements. MacBook’s continual refinement of laptop design, including the transition to Apple’s own M1 chips. Apple Watch pioneered wearable health technology with features like heart-rate monitoring, ECG, and fitness tracking. Apple Music, iCloud, and Apple Pay create an integrated ecosystem that enhances user loyalty and generates recurring revenue.
  • Impact: Apple’s innovation has reshaped multiple industries—telecommunications, computing, wearables, and entertainment. Its design ethos has set new standards for user interfaces and product aesthetics worldwide. Apple’s ecosystem lock-in strategy has cultivated an immense, loyal customer base and strong brand equity. Financially, Apple’s innovations have led to its position as the world’s most valuable company, with ongoing expansion into augmented reality (AR), health tech, and services signalling future innovation frontiers.

BYD

BYD (Build Your Dreams) is a Chinese multinational known for its pioneering role in electric vehicles (EVs), batteries, and renewable energy solutions. BYD’s innovation is driven by a vertically integrated strategy, enabling tight control over the entire value chain—from battery production to vehicle assembly and energy storage.

  • Innovation approach: BYD’s innovation approach focuses on combining cost-effective manufacturing with cutting-edge technology tailored for mass markets. Its vertically integrated model reduces dependency on suppliers, improves quality control, and accelerates R&D iterations. BYD invests heavily in battery chemistry advancements, such as lithium iron phosphate (LFP) technology, known for safety and longevity. The company also embraces agile product development to respond quickly to market shifts and regulatory changes. Localization and market adaptation are key. BYD customizes EVs and energy solutions for diverse regions, from urban Chinese markets to European and American customers, adapting features and price points accordingly.
  • Example Projects: BYD Han EV: A flagship electric sedan combining high performance, long range, and competitive pricing, rivaling Tesla models. It showcases BYD’s prowess in battery tech and electric drivetrains. Blade Battery: A breakthrough LFP battery design offering improved safety and energy density, gaining industry acclaim. Electric Buses: BYD is a global leader in electric public transport buses, helping cities reduce emissions. Energy Storage Systems: BYD develops grid-scale and residential energy storage solutions integrated with solar technologies.
  • Impact: BYD’s innovations have accelerated the global EV transition by providing affordable, reliable electric vehicles and batteries. It has reshaped China’s transportation and energy sectors and expanded globally, influencing markets in Europe, North America, and beyond. BYD’s technological advances have contributed to cleaner cities, energy independence, and reduced carbon emissions, aligning with global sustainability goals. Its integrated innovation strategy makes BYD a major competitor in the global clean-tech revolution, combining economic scale with technology leadership.

Canva

Canva is a global leader in democratizing design by providing an easy-to-use, cloud-based graphic design platform accessible to millions worldwide. Its innovation strategy revolves around simplifying complex design tasks, enabling non-professional users to create professional-quality visuals effortlessly.

  • Innovation approach: Canva employs user-centric innovation, relying heavily on continuous feedback loops and rapid iteration to improve usability and features. Its cloud-first architecture supports real-time collaboration, enabling teams and individuals to work together seamlessly across geographies. Canva integrates AI and machine learning to automate design suggestions, image cropping, and color matching, enhancing creativity and efficiency. The company follows a platform innovation model, continuously expanding its content library with millions of templates, images, fonts, and design elements, fueling user creativity. This extensive ecosystem approach encourages user engagement and virality.
  • Example Projects: Canva Design Platform: The core product offers drag-and-drop functionality for social media posts, presentations, posters, and more, with easy-to-use tools that simplify graphic design. Canva Pro: A subscription tier providing advanced features like brand kits, content scheduling, and unlimited storage for businesses and professionals. Video and Animation Tools: Expanding beyond static images, Canva has added capabilities for video editing and animated content creation, broadening its appeal. Canva Print: Integrates design with printing services, allowing users to order physical copies of their designs easily.
  • Impact:
    Canva’s innovation has transformed the graphic design landscape, making creative content accessible to individuals and businesses regardless of design expertise or budget. It has empowered educators, marketers, entrepreneurs, and non-profits to produce high-quality visuals, accelerating digital communication globally. Canva’s platform approach has fostered a vibrant community and disrupted traditional design software markets dominated by complex, expensive tools. With millions of active users and rapid growth, Canva exemplifies how technology and user-centric design can drive innovation and inclusion at scale.

DBS Bank

DBS Bank, headquartered in Singapore, has transformed from a traditional bank into one of the world’s most digitally advanced financial institutions. Its innovation strategy is centered on digital transformation, agile practices, and customer-centric design—making it a global model for banking innovation.

  • Innovation approach: DBS embeds innovation into its organizational DNA through a culture of experimentation and agility. It adopted agile methodologies bank-wide, restructured teams into multidisciplinary squads, and integrated DevOps practices to accelerate software deployment. The bank uses design thinking and data analytics to better understand and anticipate customer needs, enabling more intuitive, seamless digital experiences. DBS fosters innovation through a “platform thinking” mindset—developing open banking APIs and digital ecosystems that allow third-party fintechs to co-create new solutions. It also runs startup partnerships and hackathons to identify emerging technologies and business models. Employees are encouraged to “think like a startup” through the internal innovation program DBS Sparks.
  • Example Projects: Digibank: A fully paperless, branchless mobile bank launched in India and Indonesia, offering biometric authentication and AI-powered service. NAV Planner: A digital financial advisory tool using data to help customers with savings, investments, and financial goals. DBS PayLah!: A mobile wallet and lifestyle app integrating payments, rewards, and daily transactions. AI Chatbots and Virtual Assistants: Enhancing customer service and operational efficiency.
  • Impact: DBS’s innovation initiatives have earned it accolades such as “World’s Best Digital Bank” and “Best Bank in the World” by Euromoney and Global Finance. Its digital transformation significantly improved operational efficiency, lowered cost-to-income ratios, and accelerated customer acquisition across Asia. DBS has set a benchmark for how legacy financial institutions can reinvent themselves through digital-first strategies, customer obsession, and a culture that embraces continuous innovation.

Ferrari

Ferrari, the iconic Italian luxury sports car manufacturer, is synonymous with performance, precision, and prestige. Its innovation philosophy combines cutting-edge engineering with artisanal craftsmanship, ensuring every vehicle embodies speed, style, and exclusivity. Innovation at Ferrari is deeply tied to its motorsport heritage, particularly its ongoing success in Formula One.

  • Innovation approach: Ferrari employs a performance-first approach to innovation, where technology developed on the racetrack transfers directly to road cars. It maintains tight control over R&D and manufacturing, producing most components in-house to ensure quality and integration. Ferrari emphasizes lightweight materials (e.g., carbon fiber, aluminum alloys), advanced aerodynamics, and hybrid powertrains. The company’s Maranello-based Innovation Hub is where engineers, designers, and test drivers collaborate closely, using simulation, digital twin technology, and virtual prototyping to accelerate development while minimizing physical testing. Ferrari also innovates in digital customization, allowing customers to tailor vehicles through online configurators and immersive AR/VR experiences.
  • Example Projects: Ferrari SF90 Stradale: A plug-in hybrid supercar with Formula One-derived technology, combining electric motors and a V8 engine to deliver 986 horsepower. 296 GTB: Ferrari’s first V6 hybrid sports car, showcasing downsized, efficient powertrains with uncompromised performance. Formula One Cars (e.g., SF-24): Platforms for experimenting with energy recovery systems, aerodynamics, and telemetry—directly influencing road car innovation. Personalization Studio: An innovation in luxury experience, enabling clients to customize their Ferrari in minute detail.
  • Impact: Ferrari’s innovation has cemented its status as a leader in performance and exclusivity, enabling it to command premium pricing and extraordinary brand loyalty. Its hybrid advancements align with emissions regulations while maintaining Ferrari’s performance edge. The brand remains aspirational, proof that technological sophistication and emotional design can coexist—and drive business growth in a fiercely competitive industry.

Haier

Haier, headquartered in Qingdao, China, has become a global leader in appliances and smart home solutions through a radical, decentralized innovation model known as “rendanheyi.” This approach dismantles traditional corporate hierarchies and empowers micro-enterprises (MEs) within the company to innovate independently and respond rapidly to customer needs.

  • Innovation approach: Haier’s innovation is rooted in user-driven, zero-distance innovation—deeply embedding the customer into the value creation process. Under Rendanheyi, employees act like entrepreneurs, directly accountable for profit and customer satisfaction. Each ME functions autonomously, with the ability to form cross-functional teams, co-create with users, and partner externally with startups or tech platforms. Haier also leverages open innovation through its HOPE platform, connecting thousands of scientists, researchers, and startups worldwide to co-develop solutions. The company’s strategic acquisitions—like GE Appliances and Italy’s Candy—allow it to blend global innovation capabilities with local market insights.
  • Example Projects: COSMOPlat: A user-driven industrial internet platform enabling mass customization of appliances by involving users in the product design and production stages. Smart Home Ecosystems: Integrated solutions connecting appliances via IoT to create intelligent, adaptive living environments tailored to user habits. GE Appliances FirstBuild (U.S.): A microfactory and innovation lab that crowdsources, prototypes, and tests new appliance ideas rapidly. Haier Europe Open Partnership Ecosystem: Co-developing technologies with European universities, startups, and R&D labs.
  • Impact: Haier’s innovation model has disrupted the appliance industry by converting internal functions into dynamic market-facing units. It transformed from a local fridge maker into a global innovation powerhouse, consistently topping global appliance brand rankings. By enabling local responsiveness and global knowledge-sharing, Haier has created a sustainable engine for growth, adaptability, and customer-centric innovation.

IKEA

IKEA, the Swedish home furnishings giant, is known for its flat-pack furniture and accessible design. But behind the simplicity is a deeply strategic, multi-faceted approach to innovation that spans product design, supply chain optimization, sustainability, and digital transformation.

  • Innovation approach: IKEA embraces design-led and sustainable innovation, focusing on affordability, functionality, and environmental responsibility. Its innovation model combines in-house R&D, cross-functional innovation labs, and open collaborations with universities, startups, and global partners. A key innovation driver is Space10, IKEA’s external research and design lab. It explores future-living concepts like circular systems, urban farming, AI in homes, and autonomous delivery. IKEA also uses democratic design principles—ensuring every product meets five criteria: form, function, quality, sustainability, and low price. IKEA is shifting to a circular business model, designing products for longevity, repair, reuse, and recyclability. It experiments with product-as-a-service models, leasing furniture and offering buy-back programs.
  • Example Projects: Buy Back & Resell Program: Allows customers to return used IKEA furniture for resale, supporting circularity. IKEA Kreativ: A spatial design app using AI and AR to let users design their home virtually with IKEA products. Electric Delivery: IKEA aims to make all home deliveries emission-free by 2025, already active in cities like Shanghai and Los Angeles. FÖRNYAD & LOKALT Collections: Co-created with global artisans, showcasing inclusive, local innovation.
  • Impact: IKEA’s innovation strategy has helped it evolve from a retail-centric brand into a sustainability and tech-forward leader in home living. Its work in circular design, digital services, and community co-creation enhances customer experience while reducing environmental impact. IKEA’s forward-thinking, scalable innovation practices make it a blueprint for reinvention in legacy retail.

L’Oréal

L’Oréal, the world’s largest cosmetics company, has built its innovation leadership by blending scientific excellence with cutting-edge digital technology and personalization. It operates at the intersection of beauty, biotech, and tech, constantly reinventing how products are developed, personalized, and delivered.

  • Innovation approach: L’Oréal invests over €1 billion annually in R&D and operates more than 20 research centers globally. Its innovation model is built on open innovation, scientific research, and digital transformation. L’Oréal’s acquisitions—like ModiFace (AI/AR for beauty tech)—reflect its commitment to future-ready innovation. It uses AI, AR, and big data to personalize customer experiences and develop products aligned with diverse consumer needs. It also partners with startups through its Open Innovation Program, tapping into external creativity to develop new formulas, sustainable materials, and consumer tech. The company integrates green chemistry and biotech-based ingredients to reduce environmental impact.
  • Example Projects: ModiFace Virtual Try-On: Allows customers to test makeup products via AR in real-time, transforming e-commerce and in-store experiences. Perso: A smart skincare and cosmetic device that uses AI to dispense personalized formulas based on user data, skin analysis, and environmental conditions. Biotech Beauty: Partnering with companies like Geno and Debut to produce sustainable alternatives to traditional cosmetic ingredients. YSL Rouge Sur Mesure: A device that allows users to create thousands of personalized lipstick shades at home.
  • Impact: L’Oréal’s innovation initiatives have transformed it into a beauty-tech pioneer, expanding its market reach and deepening brand loyalty. It leads in sustainability by reducing carbon emissions and transitioning to eco-designed products. L’Oréal’s success demonstrates how legacy brands can combine science, technology, and personalization to innovate at scale and stay ahead in fast-evolving global markets.

Nike

Nike has become a global symbol of performance, culture, and innovation by continually pushing the boundaries of product design, digital engagement, and brand experience. Its approach to innovation is centered on athlete insight, cutting-edge design, and technology integration—all driven by a strong internal culture of creativity and experimentation.

  • Innovation approach: Nike’s innovation engine is powered by the Nike Sport Research Lab (NSRL), where scientists, designers, and athletes collaborate using biomechanics, physiology, and data analytics to refine product performance. The company also runs Nike Explore Teams and Innovation Kitchen, where concepts are rapidly prototyped and tested using advanced materials and 3D printing. Nike embraces co-creation and digital platforms to engage consumers directly. It uses machine learning, AI, and ARin its apps to deliver hyper-personalized product recommendations and fitness plans. Sustainability is another pillar of Nike’s innovation, driving the development of circular products and carbon-efficient manufacturing.
  • Example projects: Nike Flyknit: A lightweight, seamless upper made with precision knitting technology, reducing waste by 60% compared to traditional methods. Nike Adapt: Self-lacing smart shoes that adjust fit via a mobile app—blending tech and functionality. Nike By You: A co-creation platform allowing customers to customize footwear and apparel. Move to Zero: Nike’s journey toward zero carbon and zero waste, including products made from recycled materials (e.g., Space Hippie shoes). Nike Fit and Nike App at Retail: Uses AR and AI for foot scanning and in-store personalization.
  • Impact: Nike’s relentless innovation has allowed it to lead in both performance and culture. Its ability to fuse technology with storytelling and sustainability keeps it relevant across generations. Nike isn’t just selling shoes—it’s shaping the future of sport, fashion, and human potential through a bold and user-obsessed innovation ethos.

P&G

Procter & Gamble, the multinational consumer goods giant behind brands like Tide, Pampers, Gillette, and Olay, has long been a trailblazer in product innovation and brand-building. Its innovation strategy is rooted in deep consumer insight, open collaboration, and advanced science, supported by its longstanding mantra: “The Consumer is Boss.”

  • Innovation Approach: P&G pioneered the “Connect + Develop” open innovation model, which actively partners with external inventors, universities, and startups to co-create new products and solutions. This ecosystem-driven model enables faster access to emerging technologies and broader market insights. Internally, P&G integrates Design Thinking, AI, and data science into product development to better anticipate needs and personalize consumer experiences. Its Innovation Centers, located around the globe, combine multidisciplinary R&D teams with local market experts to test and refine concepts in real-world conditions. P&G also prioritizes sustainable innovation, embedding environmental criteria into product design—reducing water, plastic, and carbon footprints without compromising performance.
  • Example Projects: Tide Eco-Box: A sustainable laundry detergent delivery system designed for e-commerce, using 60% less plastic and 30% less water. SK-II Future X Smart Store: Uses facial recognition, AI skin analysis, and digital interaction to personalize skincare retail experiences. GilletteLabs Heated Razor: A luxury grooming innovation integrating heat technology to simulate the sensation of a hot towel shave. Always “Like a Girl” Campaign: A fusion of product, purpose, and innovation in brand storytelling and consumer engagement.
  • Impact: P&G’s innovation has enabled it to remain a global leader across diverse categories by consistently creating meaningful, high-performance, and sustainable products. Its ability to combine cutting-edge science, user-centric design, and open innovation ensures long-term relevance in an ever-evolving consumer landscape.

On

On, the Swiss running shoe and apparel company founded in 2010, has emerged as one of the most innovative and fastest-growing sportswear brands globally. Its innovation philosophy centres around radical product differentiation, performance design, and sustainability, blending Swiss engineering precision with a distinctive brand ethos.

  • Innovation Approach: On pioneered its signature CloudTec® technology—cushioned pods that compress then rebound for a soft landing and explosive takeoff. This unique sole design exemplifies On’s commitment to functional innovation that solves real runner problems. On maintains full control over R&D, testing every concept in its Zurich-based On Lab, in close collaboration with elite athletes and engineers. The company also champions sustainable innovation. On’s R&D focuses on circularity, carbon reduction, and alternative materials. It uses bio-based materials and designs for recyclability, aiming to shift the performance footwear industry toward a more responsible future. Brand-wise, On embraces a community-led, digitally native model. Its Direct-to-Consumer strategy includes strong storytelling, experiential retail, and community activations like “On Run Clubs” to gather insights and build loyalty.
  • Example Projects: Cloudmonster: A max-cushion performance running shoe featuring an aggressive take on CloudTec® and Helion™ superfoam. Cyclon: A fully recyclable, subscription-based running shoe made from castor beans—returned and re-manufactured at end of life. On Performance Running Collection: High-performance apparel made with sustainability at its core. On Innovation Hub: A space fostering rapid prototyping, biomechanical testing, and co-creation.
  • Impact: On has scaled rapidly, going public in 2021, and earning endorsement from athletes and design aficionados alike. Its blend of engineering innovation, sustainable design, and community storytelling positions it as a new generation performance brand. On proves that challenger brands can reshape entire industries by fusing product innovation with strong purpose and global ambition.

OpenAI

OpenAI is a leading artificial intelligence research and deployment company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity. Founded in 2015, OpenAI has quickly become a trailblazer in AI innovation by combining cutting-edge research with practical applications that transform industries.

  • Innovation Approach: OpenAI’s innovation strategy centers on advancing deep learning, reinforcement learning, and natural language processing (NLP). Its team focuses on developing powerful AI models capable of understanding and generating human-like language, reasoning, and decision-making. The organization embraces an open research ethos, publishing breakthroughs and encouraging collaboration with academia and industry. OpenAI uses large-scale model training on vast datasets and cutting-edge architectures, including transformer models, to push the boundaries of what AI can achieve. Safety and ethics are core to OpenAI’s approach. It invests heavily in alignment research to ensure AI systems behave reliably and beneficially. OpenAI also promotes responsible AI deployment, balancing innovation with societal considerations.
  • Example Projects: GPT series (including GPT-4): State-of-the-art large language models that power applications from chatbots to content generation and coding assistants. DALL·E: AI models generating high-quality images from textual descriptions, opening creative possibilities. Codex: AI that translates natural language into code, revolutionizing programming workflows. ChatGPT: A conversational AI interface widely adopted for education, customer support, and creative assistance. OpenAI API: A cloud platform enabling businesses to integrate AI into products and services efficiently.
  • Impact: OpenAI has accelerated AI adoption across sectors such as healthcare, education, entertainment, and software  development. Its innovations have sparked a global AI revolution, driving new business models, enhancing productivity, and expanding human creativity. By championing both cutting-edge research and responsible innovation, OpenAI shapes the future of AI with a focus on broad societal benefit.

Schneider Electric

Schneider Electric is a global leader in energy management and automation, known for pioneering digital transformation and sustainability innovation. Its approach centers on enabling smarter, more efficient, and more sustainable energy use across homes, buildings, datacentres, infrastructure, and industry.

  • Innovation Approach: Schneider’s innovation is driven by its vision of “Life Is On,” promoting access to energy and digital empowerment for all. It integrates AI, IoT, edge computing, and advanced automation to deliver intelligent solutions that optimize energy efficiency and resilience. The company operates multiple Innovation Hubs worldwide and runs the Schneider Electric Ventures fund to invest in startups tackling energy and sustainability challenges. Schneider also uses a platform-based approach, connecting hardware, software, and services through its EcoStruxure™ architecture—an open, interoperable, IoT-enabled system. It embraces open innovation, collaborating with tech partners, industrial customers, startups, and governments to co-develop solutions. The company also innovates around circularity, digitization, and decentralized energy systems to tackle climate change and empower communities.
  • Example Projects: EcoStruxure™ Platform: Provides real-time data, analytics, and automation across energy, IT, and industrial systems—used in buildings, factories, and data centers globally. Green Yodha Campaign (India): A grassroots movement engaging businesses and communities in climate action through smart energy use. Intelligent Microgrids: Helps remote or disaster-prone areas create self-sufficient energy systems using renewables and smart controls. Sustainability School: A digital learning platform launched to upskill professionals in sustainable innovation and energy management.
  • Impact: Schneider Electric has been ranked the world’s most sustainable company (2021 and 2025, Corporate Knights) and is widely recognized for driving climate-positive innovation. Its solutions have helped reduce CO₂ emissions for customers globally, proving that technological innovation can go hand in hand with environmental leadership and inclusive growth.

Xiaomi

Xiaomi, founded in 2010, has risen rapidly to become one of the world’s leading electronics and smart device companies. Its innovation strategy is grounded in a unique blend of user-driven R&D, ecosystem integration, cost efficiency, and community co-creation. Xiaomi views innovation not just as breakthrough technology, but as the democratization of smart living—bringing high-quality, affordable products to the masses.

  • Innovation Approach: Xiaomi follows a “triathlon” business model: hardware, internet services, and new retail. Its innovation engine is fueled by massive user feedback loops, crowdsourcing feature ideas, and rapidly iterating designs. Xiaomi allocates around 5% of annual revenue to R&D, with growing investments in AI, robotics, electric vehicles, and smart home ecosystems. A defining feature of Xiaomi’s innovation approach is its ecosystem strategy. It has incubated over 400 ecosystem companies, extending its smart living portfolio through partnerships—creating a seamless AIoT (AI + IoT) network of interconnected devices. It also emphasizes lean manufacturing, in-house chipset development (like Surge SoCs), and a highly engaged online fanbase (“Mi Fans”) to sustain a virtuous cycle of co-innovation.
  • Example Projects: Mi AIoT Ecosystem: Over 200 million connected devices including air purifiers, TVs, smart locks, and kitchen appliances—all integrated via the Mi Home app. Xiaomi EV (2024): Entry into electric vehicles with the SU7, leveraging software, connectivity, and design strengths from its consumer electronics expertise. Mi Mix Series: Pioneering bezel-less and foldable smartphone designs. HyperOS: A unified operating system designed to power everything from smartphones to IoT and vehicles.
  • Impact: Xiaomi’s model has redefined the tech industry in emerging markets. By fusing affordability, design, and user-centric innovation, it has built a global brand trusted by millions. Xiaomi proves that agile, community-led innovation at scalecan disrupt entrenched players and open up new markets across categories.

Waymo

Waymo, a subsidiary of Alphabet Inc., is a global leader in autonomous vehicle (AV) technology, focused on revolutionizing transportation through self-driving technology. Its innovation strategy blends cutting-edge AI, robotics, and sensor technologies with real-world testing to create safe, scalable autonomous mobility solutions.

  • Innovation Approach: Waymo’s innovation approach is rooted in data-driven machine learning, simulation, and iterative testing. It uses vast amounts of real-world and simulated driving data to train its AI, continually improving perception, decision-making, and safety. Waymo’s multi-sensor system integrates lidar, radar, and cameras to create a comprehensive 3D model of the vehicle’s environment. The company invests heavily in software development and hardware integration, developing proprietary chips and sensor fusion algorithms to optimize performance and reduce costs. It runs extensive pilot programs and public trials, collaborating with cities, governments, and partners to test and refine its technology under diverse conditions. Waymo also leverages open innovation and partnerships, working with OEMs, logistics firms, and fleet operators to commercialize its autonomous driving system.
  • Example Projects: Waymo One: The first fully autonomous commercial ride-hailing service, launched in Phoenix, offering driverless rides to the public. Waymo Via: An autonomous trucking and delivery service, aiming to transform freight logistics with safer, more efficient transport. Autonomous Driving System (ADS): A scalable, integrated hardware-software stack that can be deployed on various vehicle platforms. Simulation Suite: A sophisticated virtual environment for testing millions of miles of driving scenarios, accelerating development cycles.
  • Impact: Waymo has been a pioneer in building public trust and demonstrating the feasibility of fully autonomous vehicles. Its technology has the potential to reduce accidents, improve mobility access, and lower transportation costs globally. As one of the most advanced AV developers, Waymo is shaping the future of urban mobility, logistics, and smart cities through relentless innovation and real-world impact.

What’s next?

In an age of climate urgency, AI disruption, demographic shifts, and social realignment, the companies that thrive will be those that innovate boldly and holistically. Business innovation is not just about the next product launch—it’s about imagining and building the next version of the company itself.

AI won’t just assist innovation—it will become the core engine. From automated R&D and predictive analytics to AI-designed products and services, companies will innovate faster by leveraging generative AI, reinforcement learning, and advanced simulation. This will reduce time from idea to market and enable personalized, real-time innovation.

Innovation will increasingly happen through collaborative ecosystems and platforms rather than isolated corporate labs. Companies will co-create with startups, customers, academia, and competitors via open APIs, decentralized platforms, and blockchain-enabled innovation networks (DAOs). This will accelerate ideation, validation, and scaling globally.

How will companies innovate better and faster?

Real-time experimentation will become key. Rapid prototyping, digital twins, and simulation will enable companies to test thousands of variants quickly with near-instant feedback. This includes agile, data-driven decisions with continuous data integration and AI-powered insights will guide innovation strategies, reducing risks and optimizing investments. It will also be driven by more decentralized governance, with DAOs and blockchain allowing communities and stakeholders to participate directly in innovation governance, funding, and IP sharing.

Innovation will emerge at the intersection of industries, blending insights from tech, biology, energy, finance, and creative sectors. Companies will embed learning cultures supported by AI mentors, real-time knowledge sharing, and skill upskilling. The future of innovation is about collaborative intelligence, speed, purpose, and adaptability. The companies that embed these principles in their DNA will not only survive but thrive and lead new industries.

How can I help you?

Peter Fisk helps you to innovate, further and faster. This can be either through fast and focused facilitation using the “Innolab” methodology that brings expert support to help you make the best ideas happen faster, through to the broader challenges of developing a creative culture, and innovation strategy – from capability diagnostics to portfolio management.

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Examples of recent clients include

  • Airbus: Driving towards sustainable travel, how aircraft can decarbonise faster, embrace new fuels like hydrogen, and new business models.
  • American Express: Innovation mindset and breakthrough projects, developing a shared process and culture for innovation.
  • Aster Atelier: Reimagining the fashion business for one of the largest private label manufactures on the high street, how to be better and go direct.
  • Coty: rethinking business models for the future of cosmetics – consumer change, market disruption, finding new growth – and rethinking the role of licensing models, to build more powerful brands in a changing world
  • Canon: FutureBook, creating the future of printing and publishing, positioning Canon as the thought leader of its customers world.
  • Erste Bank: How banks can innovate for innovators, by recognising the roles of finance and advice at each point in the start up, and scale up, journey for small businesses.
  • GSK: Rethinking healthcare around patients and doctors, from an old model of product-centric selling to a new future of patient-centric wellbeing.
  • Holcim: Helping the world’s largest cement company to accelerate its future in the circular economy, driving new innovations beyond green cement, to new construction systems, regenerating waste materials, and much more.
  • NTT: Working with Japan’s leading tech company to reimagine the future of data-driven organisations, how NTT can most effectively work with its business partners, and become an enable of business transformation, growth and futures.
  • Savola: Supporting the executive team and board to reimagine the future of one of the Middle East’s leading food businesses, new acquisitions, shaping the future strategy, embracing new trends, and driving practical innovations in products, services, and how they are delivered.

Here is the 4D innovation process which Peter uses as a starting point for implementing effective innovation capabilities and processes within organisations:

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