Across industries, companies now realize that technology is crucial to their success and a key driver of competitive edge. Innovation strategies and digital implementations feature heavily in many internal discussions, often accompanied by the fear of being left behind. At the same time, it isn't easy to know where to start, which can trigger as much anxiety as not moving forward at all. With so much uncertainty around emerging technologies, it's clear that any company needs a strategy to ensure it remains relevant and can thrive within a rapidly changing landscape.

The key to selecting a digital solution is to focus on what will bring you business value. Many technologies claim to be the next big thing, and picking the right one for your organization requires concentrating on what drives your business's value. We call this pragmatic approach innovation.

Pragmatic innovation is about identifying the best solution to meet your needs and discovering what will increase productivity, profit, and ROI. It's about making intelligent technology choices that reduce costs and improve ROI over time.

ASK THE RIGHT QUESTIONS

Before you even start to develop a digital solution, you must gain a deep understanding of your industry and organization. Without this all-encompassing knowledge, you cannot successfully solve any problems or achieve your goals.

It is pretty common for organizations to choose technology that is a poor fit or not thoroughly thought through. For instance, Implementing a new enterprise resource management system is pointless if it automates inefficient or outdated processes.

Selecting a tech solution without input from everyone using it leads to a lack of clarity on what's needed, leading to an unnecessarily complex solution.

Pragmatic innovation requires taking a step back, analyzing the problem in the context of the bigger picture and asking the right questions, such as:

• What are some common problems our industry faces? Do we face them more or less than other organizations in the same space? Which category do we belong to – fast adopters, staying current, or falling behind?

• Are we taking a holistic approach and thinking beyond silos and individual stakeholders.

• Should we narrow in on one problem and one solution, or should we be open to a mix of implementations? And if we are considering multiple solutions, are we risking too much too soon by trying to do everything at once?

• Why are we considering digital changes at all? Is it a deliberate decision? Are we being proactive or reactionary?

• Which areas within our business have the greatest need, and who have we consulted about this?

• What will we achieve with the new solution we are not currently achieving?

• What will be our measure of success?

The above questions may not be an exhaustive list, but it is an excellent place to start considering the bigger picture.

LEVERAGE ON EXISTING TECHNOLOGY WHEREVER POSSIBLE

Implementing technology and even transforming your business into a digital organization doesn't mean you have to start from scratch. There may be tools that you already have to work with, saving you a lot of time and money. Pragmatic innovation means leveraging what you already have to reduce costs, increase efficiency, and make it easier to onboard with new technology.

Almost everyone uses Excel but not to its full potential. Perhaps your organization is having trouble tracking inventory or scheduling meetings — or you need a CRM. You could use Excel for all these purposes. In the future, you might need dedicated tools with specific features for these tasks, but why not start with what you already know and what you've already got? It's a great way to achieve proof of concept before making significant investments in new technology.

Excel is just one example of the many different tools that may already be available within your technology ecosystem and can be used to deliver optimization. What other systems do you use that you can maximize? Do you have an ERP system, accounting software, HR tools, Website CMS, or your email client?

MAXIMIZE EXISTING CUSTOMER CHANNELS

The term "digital transformation" typically encompasses a lot of different ways in which technology can be incorporated into existing business operations to make them better, more efficient, and more customer-centric. Take some time to think about how you might use technology to better serve customers (and gain new ones) within your current channels.

Of course, you should also look at how you can utilize those technologies to reach your customers in new channels, but first, focus on leveraging what you already have.

Let's say you're an eCommerce company considering whether or not to invest in a new augmented reality app that allows customers to see if clothes will fit them through a 3D rendering of their body. It sounds like a great idea, but it might be better to hold off and make some practical improvements to your existing channels, like your website. For example, how would streamlining your online checkout process reduce abandoned carts? Or how much additional profit could optimizing your in-store displays and online store layouts mean each year? These are typically simple and cost-effective ways to make a huge difference to your bottom line while leveraging what's already working well.

UPDATE LEGACY IT IN STAGES

Every legacy IT system needs an upgrade eventually. But it's not as simple as adopting the latest and greatest — it can be risky. But, when you approach this task from a pragmatic innovation perspective, you can modernize legacy systems while reducing the technical debt they've amassed over the years (sometimes decades). It also means you have the opportunity to leverage the features that are working well for you in your legacy system.

This is done by digitally decoupling. Digital Decoupling allows older systems to function in conjunction with new ones without wiping out anything or introducing any unknown tools or systems. And this approach has immediate benefits while also providing a smart long-term digital path.

THE NEXT PHASE OF YOUR DIGITAL TRANSFORMATION PROGRAM

If you are in a position where creating an entirely new digital ecosystem is the way to go, many of the same considerations still apply and require a pragmatic approach. How does this solution help you reach your goals? What will make your organization run as efficiently and profitably as possible? What specific goals are you hoping to accomplish with this technology that you cannot currently do?

If you're framing your objectives as "move to the cloud," "leverage machine learning," or anything along those lines, instead ask yourself questions like, "How can we use technology to serve our customers better?" Having a business outcome firmly in mind helps ensure you choose the solution that will achieve it.

CONCLUSION

Technology is evolving at an incredible pace, and any 'innovation-focused' business should be interested. I've seen many cases where technology has led to some really innovative solutions; however, it is necessary to balance being practical and pragmatic and being curious and exploring the edge of possibilities without veering too far off course.