The 2015 Innovation Insider Index sheds light on financial services

Our Index shows FinTech taking the lead

As a consultancy with an inherent interest in big business innovation, we think it’s important to find out which UK companies are doing it right. While many pay public lip service to the importance of innovation, there are those who don’t value it as much as they say…

That’s why we created the first survey that takes the temperature of big business innovation from the inside: the Innovation Insider Index. We asked around 20,000 influential professionals in the UK to rate their own companies against our six principles of innovation. They gave us a Top 30 of this country’s big business innovators, with representation from a wide range of sectors, including automotive, retail, energy, tech and financial services.

FinTech: outpacing the rest of its sector

The Index also looks at how businesses from different industries tend to behave. One of the more complex was the financial services industry: overall, the challenges and changes of recent years mean that around 80% of this sector’s investment is focused on regulatory compliance. But there’s one specialist area that bucks this trend – FinTech.

Insiders from this field gave several high scores to their companies in this sector. So what makes them different? To start with, we see businesses led by individuals with a clear innovation agenda and bold leadership. Barclays and Aegon are two players with coherent, digitally-led visions for the future.

Aegon had the vision to move from a traditional, broker-mediated insurance model by creating Retiready, an intuitive, mobile-enabled, direct-to-customer pension and ISA sales tool. They did this by focusing on what their customers thought and needed.

Meanwhile, Barclays has been generating a range of innovative new products and services; one of the latest is bPay, a contactless payment wristband that brings a cashless lifestyle one step closer.

These advances are in the context of a step-change in payment networks, partly driven by the entry of tech giants like Apple (their contactless Apple Pay system is reported to be launching this month) and game-changing services like Bitcoin.

Our advice to established financial services organisations

As one of the sectors that have seen the most disruption in the past few years, traditional financial services companies now need to zero in on how to differentiate themselves. Being a big institution and focusing on regulatory compliance, while essential, is no longer enough. You must be ambitious and find effective ways to engage with a digitally native generation.

But you don’t have to take on everything in-house – collaboration is key. There’s a reason this is one of our six principles of innovation: sharing and learning lets you validate and refine your new ideas quickly, especially through early prototyping. This maximises your user experience input; excellent and insightful UX design can really bring new projects to life.

Get more details in the 2015 Index

You can download the full report to discover our Top 30 innovators, commentary on the results, and some of their reactions and insights. Find it at www.mginnovationindex.com. Check if your company made the Top 30, and let us know your thoughts – does your business embody the six principles? Join the conversation on Twitter: #innovatebig #6principles

 


Does big business innovation matter in a world that prefers start-ups to corporations?

The world needs the market-changing potential of corporate creativity

Innovation isn’t just for the little guys. It’s important for businesses of all sizes.

True innovation is a seamless mix of creativity and implementation, created to solve a human problem and create business value. Much greater than a big idea or new piece of tech, it’s about bringing ideas to life, to make everyone’s lives better.

We call the individuals and teams who succeed in big business innovation corporate entrepreneurs. That’s because they use the mindset and methods of entrepreneurs to see ideas through to market.

Why’s big business innovation so important?

When big businesses get behind a great new idea, the impact can be huge. They can help save us time and money, provide us with energy and protect our environment. They can even improve our health and extend our lives: that’s why innovation from established companies has the greatest potential to make the world better.

Plus, if you work for a large organisation, embracing innovation and avoiding stagnation is the best way to ensure enduring business success.

Every big company’s hiding hundreds of potentially perfect ideas, but it can be hard to harness them. Plus established organisations find it notoriously tricky to get innovation right. The whole process is a little wild and unpredictable by its very nature – not every swing will be a big hit. Innovators need room to iterate, experiment and learn through trial and error; that’s pretty different to traditional process improvement projects or ‘business as usual’ activities.

To stay relevant to your customers and one step ahead of the competition, you must keep doing new and better things. Innovative, progressive companies can even command an ‘innovation premium’, perpetuated by their ability to attract and retain the best talent. So it can even result in stock market value.

Taking the pulse of UK innovation today

Big company CEOs often declare that innovation’s at the top of their agenda, without always successfully harnessing its potential. So to get a close-up view of the facts, we’ve created the first national survey of innovation…as seen from the inside. That’s the Innovation Insider Index, which asked industry Insiders to score their own companies on their innovation activity and find the UK’s Top 30 businesses for innovation today.

Get your own Inside edge by downloading the full report now. Not only can you discover if your company made the Top 30; you’ll see who did best at what, and get our commentary and insight on the results.

Do you agree with the Top 30? Are the principles of innovation embodied in your company? Let us know: join the conversation on Twitter #innovatebig.


Innovation not big enough? Challenge the business model!

I have just returned from the Chief Innovation Officer Summit in San Francisco and the Intrapreneurship Conference in London. Both were good events with lots of discussion, but there was one question that kept coming up. How do big businesses achieve significant scale from their new products? – Otherwise it is simply not worth doing as it won’t “move the needle”.

This seems logical, but the flipside is that many good ideas can be killed simply for being too small. Often these small ideas form the ‘quick wins’ that create a positive perception and maintain the revenue to keep an innovation team intact whilst they focus on bigger, long term opportunities.

So the challenge becomes how do you get these small ideas through in a business looking for the big idea?

I asked that question to over 60 innovation executives in researching my new book, The Secrets of Big Business Innovation, and found a common response: challenge the business model. If the investment is small enough and the time and hassle factor insignificant, then these small projects can get through successfully.

There are a range of examples of ways of doing this from licensing IP, to setting up a consultancy, but my favorite is an example from my own experience at Tesco:

“Our team was searching for new revenue ideas and, when visiting a number of our petrol forecourts, (‘gas stations’ for the American readers!) we noticed that many of the air and water machines were out of service. Back at the office, we found that this was indeed a common issue; it seemed that as they were a free extra service, they were low on the priority list for the maintenance teams and this in turn was driving customer complaints at the petrol stations.

Having worked through some ideas, we trialled a paid for service at 3 sites. With revenue associated with the machines we’d be able to increase profit and the machines would be better maintained. This trial was successful with high usage of the machines at the three sites and almost no complaints.

However, the business was not prepared to invest in hundreds of new machines with payment mechanisms. Whilst it was a reasonable business case, there were simply bigger fish to fry.

However, rather than forget the idea, one of the team came up with the idea to auction off the rights to the machines, whereby a supplier would install and maintain the machine at their expense in exchange for a percentage of the revenue it generated (Tesco kept the rest). Due to the revenue share, the supplier was naturally incentivised to keep the machines up and running.

The scheme took off. The complaints dropped to insignificant levels, we’d saved our maintenance teams a headache, customer satisfaction at the petrol stations actually increased, a small supplier had a big growth opportunity and, with minimal investment, we’d generated millions of new revenue that went straight to the bottom line.”

So don’t let good ideas die from being too small – challenge the business model and reap the benefits of what is often a faster, cheaper launch and a quick success for your team. This doesn’t get around the fact that you still need big new opportunities, but it may well buy you time to develop them.


Introducing the Innovation Insider Index 2015

Celebrating the spirit of innovation in British industry

 “Big businesses have the greatest potential to make the world better: when they get behind a great new idea, the impact can be huge. That’s what makes big business innovation so important…” Pete Sayburn, our CEO and founding partner at Market Gravity.

We’ve partnered with the National Business Awards to produce this country’s very first survey of innovation in big business – from the Inside. The Market Gravity Innovation Insider Index 2015 reveals the current Top 30 innovators within established UK businesses.

The Index is based on the views of around 20,000 industry Insiders – influential professionals working at large organisations in a wide range of roles – who scored their own companies on their performance against our six principles of innovation.

The Market Gravity principles of innovation

We’ve identified these six principles from observing the key characteristics of organisations that are innovating successfully. These insights are distilled from our experience of helping big businesses innovate and bring new propositions to market.

The Insiders measured their companies’ approaches to innovation against six categories: purpose, leadership, capabilities, collaboration, competitive advantage and customer focus.

The Top 30 leaderboard

The 30 highest rated companies are big hitters from sectors that include financial services, retail, telecoms and technology.

In alphabetical order, they are: Accenture, Aegon, Airbnb, Allianz, Amazon, Apple, Argos (Home Retail Group), Barclays, BASF, BBC, BGI Group, Bloomberg, BT, Capgemini, Centrica, CGI, Coutts & Co, Direct Line Group, EE, Guardian News and Media, Hewlett-Packard, Home Retail Group, IBM, Inmarsat, Jaguar LandRover, MasterCard, Rolls-Royce Motor Cars Ltd, SAP, SKY, Toshiba and Visa.

Our take on the Top 30

The Index offers our commentary and insights on how different companies and industry sectors tend to perform against the six principles, acting as clues to the characteristic approaches found in different types of business. The full report also contains reactions, tips and advice from some of the highest-scoring companies.

Get the whole story: and join our conversation
You can download the full Innovation Insider Index from mginnovationindex.com.

The pdf report is the only place to find our interviews with some of the Top 30 companies, featuring their reactions and advice to other big business innovators. It also includes our insight and commentary on the findings.

Join the innovation conversation on Twitter: #innovatebig

 

Read coverage in The Times and the Consultancy.UK


What has innovation ever done for us?

How we turned a start-up in a recession into a fast-growing international company

Market Gravity is a fast growing and innovative company. We’re agile and entrepreneurial, but we’re also tiny compared to the large companies that we work with to bring new products and services to market, such as HSBC, Boots, British Gas and Mastercard.

Co-founders Pete and Gideon set up the business during lean times, growing it from a team of four into an international business with over 50 team members in three locations: London, Edinburgh and New York.

Here, Pete shares his experience of growing a leading innovation company and believes that there are some clear parallels for big companies to learn from.

Did you have a clear vision for Market Gravity when you first launched?

Market Gravity was founded on the premise that big companies have the potential to make a massive, positive contribution to the world. We knew that there were hundreds of great ideas and so much great talent in global corporations, but we also saw how hard it was to take a new idea to market. So we thought a specialist company that can unleash the innovation capacity in big businesses would be in great demand; this has been our focus ever since.

What was your strategy for success?

Simple. Find the corporate entrepreneurs and innovators within any big company. Then complete a brilliant project with them to design a new service or create a new venture. And finally, help them to get it to market, by giving their colleagues and bosses the confidence they need to get behind the idea.

What part does innovation play in the Market Gravity story?

Innovation is critical to our own success. We’ve been constantly evolving our method, our skills and our team composition over the past couple of years to keep delivering great results. For example, we often use ‘Voxpops’, captured via customers’ own smartphones, for quick insight or concept validation. We also create digital and physical prototypes early in the process, to bring a new idea to life, and we simulate a real customer experience before launch to identify operational issues and challenges. You don’t find these sorts of approaches in the average management consultancy.

What are the key barriers to innovation?

The biggest barrier (as well as the biggest enabler)? Time. You can’t force creativity against the clock, but you can focus innovation by introducing boundaries, challenges and constraints. We try to strike the right balance with our projects; enabling great ideas to flow, but rapidly moving ahead with the good ones, before they lose momentum.

What barriers have you had to break down with big businesses and their intrinsic thought processes?

Big companies often worry too much. They believe that they have more to lose than smaller businesses and are sometimes more concerned with how this new idea might disrupt the status quo, rather than getting excited about the positive opportunities it will create.

How can big businesses overcome these barriers?

There are some great principles to foster a growth mindset, overcome these barriers and ultimately avoid innovation death. Here are my top five:

1) Set a single-minded objective or goal
2) Be obsessive about customer focus
3) Re-invent your business, before someone else does
4) Exploit your unfair advantage
5) Move fast! Speed is the best protection against most causes of innovation death

Are you still breaking down those same barriers or have things shifted?

Some of the barriers have been lowered by the adoption of digital channels and the relative speed with which companies can now move, particularly when it comes to prototyping and testing. However, most of the companies we work with still face big challenges with their core IT systems, causing many innovation projects to turn into major change initiatives. The post-recession attitude to risk and increased regulatory scrutiny can also act to limit innovation, but just as in the middle of recession, new regulations create new commercial opportunities for the brave.

Who is setting the standard for innovation? Startups or big business?

Some of the best examples at the moment are coming from collaborations between large and small companies; I expect to see more of this. For example GE’s partnership with Quirky has resulted in UNIQ, a whole line of connected home products, and their commitment to open up GE’s patents to a community of inventors and innovators is very exciting and has unlimited potential.

Does innovation require a huge budget?

While 21st century innovation doesn’t require the massive R&D budgets of past decades, ambitious high-impact innovation takes commitment and considerable investment. But this investment, correctly channeled, has the potential to transform companies and create whole new industries.

How do you drive growth in lean times?

When economic conditions are tough, you need to pay even closer attention to the rules of corporate entrepreneurship. You need to marshal those scarce resources, move even faster, follow the money, inspire talent and remain laser-focused on your customers, at a time when others are getting distracted and losing focus. As Winston Churchill said “if you’re going through hell, keep going”.

What do you think will have the most impact on Market Gravity’s success in 2015?

The biggest positive influence on Market Gravity’s success this year will be the continued confidence of our clients to invest in growth. While there’s still plenty of economic and political uncertainty, most large companies have now shed their preoccupation with cost reduction and are looking to the future. We will see the largest companies improving their customer proposition across all their channels to market and we will see smaller, mid-sized challengers take market share from the leaders in all the main service industries.

What drives your desire to keep growing MG?

Two things: making Market Gravity the best place to work, and delivering more brilliant projects, resulting in more brilliant products and services from our clients. It’s this unsatisfied potential that keeps driving us all at Market Gravity.

Peter Sayburn is co-founder and CEO of Market Gravity, a fast-growing company of innovation and design specialists, Pete has launched new products and services in companies of all sizes, from start-ups to global corporations such as HSBC, VISA and Aegon. Throughout his career Pete has brought start-ups and big businesses together to collaborate on projects.  Pete is an expert on big company innovation and author of ‘Defying Gravity: Adventures of a Corporate Entrepreneur.’

Want to know what Market Gravity can do for you?

We’re a specialist innovation and proposition design consultancy, working with brilliant, leading companies around the world to liberate big ideas and turn them into new, innovative services. We accelerate ideas from ‘post-it’ to prototype, putting your customers at the heart of the design process. Together with our clients, we've launched big ideas in electric vehicles, next-generation financial advice, renewable energy and digital commerce. Got a challenge? Why not get in touch for a chat? www.marketgravity.com

Corporate Entrepreneur Awards

Market Gravity hosts the Corporate Entrepreneur Awards each year, in London and New York, celebrating the entrepreneurial achievements of teams and individuals within big businesses. Get a feel for the London event in our short video or some further insight from the winners’ interviews. You can also checkout our New York event footage here.