Innovate Where It Matters

 In Digital Strategy, LearnCloud, Technology & Design

Innovation can be tough and results often unexpected. Every enterprise understands that it needs to innovate but success is not felt evenly with some enterprises seeing massive success whereas continue to struggle. ROI on innovation investment can vary. However, there are certain patterns that are common in enterprises that are considered innovative and have results to prove it.

Innovating Where It Matters

The most critical signal that correlates heavily with innovation success is the position of the innovative investment in effort in the enterprise. Location refers to the part of the value supply chain where an enterprise focusses their innovation. There are three key areas that make up most value supply chains.


Innovation in the backend is often very technical making the supply chain and its operations more predictable, resilient and reliable. Innovating at this level ensures that the customers have a great experience with the current functionality set and the service is delivered with very high Quality of Service levels and customer dissatisfaction, if any, is not directly attributable to unreliable or nonresilient backends.


Innovation in the Frontend refers to innovation that either delivers new value through the solution of new or existing problems or innovation that massively improves the experience of the user to search, discover, learn, access and integrate the current value proposition to make it more likely that the customers find the value in the format through the channel when and where they need it.


Innovation with partners refers to improvements, incremental or explosive that make the ability of the partner to either consume or contribute value into their or the enterprise’s value chain seamlessly, effortlessly, efficiently with high levels of quality. Enabling partner experience increases the value to effort ratio of partners ensuring that partners can derive value for themselves easily which in turn leads to partners working more closely and for a longer time or a more diverse set of partnerships than otherwise leading to sustained value generation.

Focus of Innovation

A key mistake made by enterprises in their quest to innovate is to focus innovation efforts in the backend or frontend or partners without a direct path to value generation or benefit for the customer. This can range from technology upgrades that ultimately do not change the service quality for customers or platform development or upgrades that do not generate net new value. Where innovation happens in the enterprise is key and unplanned innovation can quickly become a resource drain on the enterprise and sap its morale when results are not generated as expected.

Infrastructure vs. Platforms vs. Applications 

Customers derive value through applications and only applications. Great platforms enable, simplify and increase the efficiency of creation and improvement of applications. Great applications can be built without great platforms however platforms cannot be great unless they support great applications. Similarly, applications and platforms require good infrastructure however infrastructure without platforms and applications is useless. 

Enterprises need to focus on build great applications. However, many enterprises especially their technical organizations, when left alone or unchallenged, focus their innovative efforts on building new platforms or enhancing the infrastructure. Unless required by the current set of high priority applications that have to be delivered to high-value customers, regardless of how innovative the platform and infrastructure might be, it does not add any value for the customer and thus this investment typically becomes sunk costs. Platforms need to be built only when a lack of the platforms in the enterprises seriously undermines the quality or the quantity of customer-facing applications.

Building Platforms and Infrastructure

With the availability of numerous Platform-as-a-Service and Infrastructure-as-a-Service offerings from multiple vendors, a decision to build a platform in-house when it is already available as a service should be carefully challenged and thought through. The economies of scale that a service provider can achieve that translates into lower cost and higher quality in their offering cannot be matched by the enterprise unless the enterprise intends to be a service provider and the service is their main revenue driver. In all other cases, competing with a service provider that has achieved a certain level of scale is foolhardy and not only can lead to wasted resources but also typically delivers a lower quality of service to the consumers of the platform and infrastructure within the enterprise. These consumers (developers, app builders) end up building applications that do not perform as well as the ones developed on state-of-the-art platforms and infrastructure.

The AI Company offers a Digital Innovation Platform that frees up enterprises from building platforms that enable new applications that use the best in class technologies such as AI, ML. ChatBots, Blockchain, IoT, Analytics, BigData etc.’s PaaS offering is designed to enable enterprises to build great apps faster, cheaper with lower risk. Talk to us to see how we can transform into an innovative, cutting-edge organization.

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