S3Corp. Tech Blog

Innovation is essential for market leaders. Companies like Google, Amazon, and Netflix are not just brands; they are ecosystems of creativity that constantly disrupt their industries. However, maintaining innovation is challenging, and many companies struggle to sustain their momentum after reaching a certain level of success. So, how can your business achieve and maintain groundbreaking innovation? Start by considering these three key questions.

1. How Do You Foster an Innovative Workplace?

Creating an innovative culture goes beyond simply adding a “creative space” in the office. It requires an environment where exploration, questioning the status quo, and even failure are embraced rather than discouraged. A recent World Economic Forum (WEF) report highlighted just 24 companies from a pool of 600 applicants as this year’s “Technology Pioneers.” The common factor among these companies is that they treat research and development (R&D) as an investment rather than an expense, prioritizing originality in their products—favoring groundbreaking innovations over incremental updates or copies of existing products.

For instance, in mobile and web application development, leading companies have discovered how to nurture an environment where innovation is not just a directive but a shared mindset. According to Fulvia Montresor, director of the WEF’s technology pioneer community, “Businesses that continually innovate have mastered a combination of recruiting and retaining exceptional talent, establishing a strong vision, and fostering a culture that rewards experimentation—even in the face of failure.”

A notable example is Silicon Valley’s practice of allowing “20% time,” where employees dedicate part of their working hours to personal projects. While this system has its challenges, it is precisely the freedom to explore unconventional ideas that has led to significant industry innovations. Gmail and Google News, for example, originated as “20% time” projects. The lesson here is that innovation requires both physical and psychological space for unrestricted exploration.

To nurture innovation within an organization, it’s crucial to constantly revisit and evolve practices. Vietnam software outsourcing companies venturing into the global software development arena have begun experimenting with similar approaches, allowing flexibility in project design and team structure. This flexibility empowers employees to think creatively and independently, bolstering the company’s competitive advantage.

2. Should You Develop Products Within or Beyond Your Office Walls?

When it comes to innovation, there is no one-size-fits-all approach. Companies adopt different strategies for product development, each with its advantages and disadvantages. Determining whether to develop in-house or to open your R&D to external influences can significantly impact your innovative capacity.

Take Lechal, a wearable tech company that creates haptic feedback-enabled insoles and footwear to assist visually impaired individuals. Operating within what they refer to as a “bubble,” Lechal focuses entirely on creating products based on internal ideas and market insights. “Our philosophy has always been to create products that we would want to buy personally,” says Sonia Benjamin, Lechal’s general manager for communications and business development. “This freedom allows us to concentrate solely on the product, free from external influences that can often hinder more radical innovation.”

Conversely, Boogio, a company that manufactures smart shoe inserts to capture balance and movement data, has pursued a different strategy. Boogio launched a developer kit, inviting external developers to create applications around its technology. By integrating its inserts with devices like Google Glass, Oculus Rift, and the Pebble smartwatch, Boogio has expanded its reach and encouraged user-driven innovation in shaping future iterations. “We depend on insights and creative applications from our developer community to guide the next generation of our products,” explains Boogio CEO Jose Torres. “This approach allows us to harness R&D from beyond our walls, keeping us competitive in a fast-paced market.”

Which Model Best Suits Your Company?

When deciding on a development model, consider the strengths of both in-house and open innovation. In-house development provides complete creative control, while open innovation can accelerate progress by bringing in new perspectives. For software development companies in Vietnam aiming to establish a presence on the global stage, combining internal product development with external collaboration offers a balanced approach that encourages scalability and responsiveness to market trends.

3. Are You Outpacing Your Competitors?

Innovation involves more than just keeping up with competitors; it’s about leading the way. Many of the world’s most transformative companies don’t just meet industry standards; they redefine them. Guardant Health, recognized as a WEF Technology Pioneer, exemplifies this mindset. Instead of relying on conventional cancer diagnostics, Guardant Health developed a blood-based test that tracks cancer progression in real time, providing a groundbreaking alternative to invasive biopsies. This idea, while seemingly simple, has the potential to revolutionize cancer monitoring and management.

In a similar vein, Newlight Technologies tackled the oil-based plastics industry by creating a new type of plastic from greenhouse gases and air, offering an environmentally friendly and cost-effective solution. “When industries converge in unexpected ways, one innovator’s vision can ignite transformation across an entire sector,” states Montresor. The intersection of environmental responsibility and product development is prompting companies to rethink their offerings and their ethical and operational strategies.

An even bolder example is Organovo, which specializes in bioprinting technology. Rather than using 3D printing for standard prototypes, Organovo focuses on printing actual human tissue for medical research and therapeutic applications. Their long-term goal is to 3D print fully functional organs for transplants, which could significantly alter the healthcare landscape. For your company, consider whether your products and services merely compete within your industry or whether they strive to offer new solutions that could transform it.

In Vietnam’s growing software services sector, businesses are increasingly exploring innovative applications that exceed current market demands. By concentrating on cutting-edge technologies such as artificial intelligence and blockchain, these companies aim not only to keep pace with global competition but to pioneer solutions that reshape the software outsourcing narrative.

Practical Steps to Foster Innovation

Now that you have the guiding questions, here are actionable steps to help your company implement these insights effectively:

1. Establish Cross-Functional Teams: Innovation often occurs where diverse skills and perspectives intersect. Encourage collaboration among departments on research and development projects to combine technical knowledge with customer insights, leading to well-rounded solutions.

2. Cultivate a Safe-to-Fail Culture: Innovation requires risks. Implement a feedback system that rewards both lessons learned from unsuccessful ideas and successful experiments. When employees know their jobs aren’t at risk if their ideas fail, they are more likely to take bold, creative risks.

3. Incorporate Customer Feedback Early: While not all ideas need early customer input, grounding decisions in customer feedback can help direct research and development efforts toward more viable and impactful innovations.

4. Invest in Continuous Learning: Encourage your team to remain informed about industry trends and emerging technologies. This could involve hosting workshops, attending conferences, or even forming a dedicated innovation team focused on researching and implementing new ideas.

5. Embrace Open Innovation: Experiment with open platforms or developer kits that allow external developers or users to contribute to product development. The fresh ideas from a wider community can keep your products relevant and introduce perspectives you may not have considered.

6. Measure, Adjust, and Scale: Innovation is an ongoing process. Develop metrics to evaluate the success of your innovation initiatives, adjust your strategies based on their performance, and scale up successful efforts.

Innovation is a Marathon, Not a Sprint

Real, lasting innovation doesn’t come from a single eureka moment but from a continuous, disciplined approach to rethinking and improving upon what already exists. As companies like Google, Amazon, and Netflix demonstrate, the goal isn’t merely to reach the top but to evolve and reimagine the summit itself.

By fostering an environment that promotes experimentation, deciding whether to innovate internally or collaboratively, and pushing the boundaries of what’s possible in your industry, you can position your company not only as a leader but as a lasting force of innovation. So, the question remains: Will your business be content to keep pace, or are you ready to redefine the race?