When I talk to executives about innovation, they generally go right to products and services. In other words, their default is to explore those innovation questions that everyone asks themselves. But what questions are neglected as a result?
If you are a senior executive, what are the things that you can affect, that you can change, that no one else in your organisation can change? And generally the answer to that question ultimately is strategic or business model innovation, challenging assumptions implicit in the questions: who are your customers, what are you offering them and how are you offering it.
If you can change the assumptions in those questions you are playing a different game from your competitors and you are giving yourself an inimitable competitive advantage.
Take for example Enterprise Rent-A-Car. Enterprise decided to play in a completely different sphere. Rather than primarily trying to serve air travellers, they served customers who were suffering from car breakdowns. Now, that implied that they would be putting their depots and their offices in residential areas rather than in expensive airports, so now all of a sudden, they were competing in an area that for a long time had no competitors and offered them cost advantages.
So do consider, when you can think about innovation and if you are a senior leader, what are the business model innovation questions that you can ask yourself so that you can claim advantages that would take many, many years for your competitors to imitate? And in so doing, you truly become a game-changing innovator in your industry.
Adam Kingl is Adjunct Faculty at the UCL School of Management, Hult Ashridge International Business School, an Associate of the Moller Institute at Cambridge University, and the author of Next Generation Leadership (HarperCollins 2020). www.adamkingl.com