Innovation Strategy – Has Generative AI pushed the pedal for CTOs?

More than ever, Enterprises are gazing at multitude of technology innovations to stay ahead of curve and bring in competitive differentiators. It goes without saying that the eventual outcome is value creation. On this trail, irrespective of size of an organization, the top of mind for a CTO is to instill a ‘Culture of Innovation’ within an organization.

Case in point is the current advancement in ‘Generative AI’ and which has become a top priority for Chief Technologists to derive value in short term and have a roadmap for long term. Without a doubt, ‘Generative AI’ as I have heard from leaders in the industry, has topped the portfolio of innovations being lined up to derive value. 

I have been a big fan of ‘The Three Box Solution from Vijay Govindarajan’, where he talks about a strategy for leading innovation. Though he created this framework a while back, considering the pace of innovation, I find it extremely valuable and relevant more than ever in the current times. The 3-Box solution talks about ‘How to create Future’ while ‘Managing Present’ and ‘Selectively Forgetting the Past’. Creating the future while managing the present is key and yes! Future is here.

At ‘Microsoft Technology Center’, I have the privilege of meeting CXOs daily and basis my interaction and observation in the last 90 days, below is my take on how Leaders should look at approaching an ‘Innovation Strategy’.  

1. Invest in Learning: To operate as a ‘Change Maker’, a CTO needs to invest time to learn, experiment and partner with key stakeholders to lead an Innovation Strategy. The pace of innovation is unlike what we have witnessed in the past, and hence the required awareness for a leader must be top notch. 
2. Empower Technical Geeks: The current time needs lot of research to be undertaken and hence it is time to challenge the Technical Enthusiasts to play with technology to surface key benefits for the business. This is as good as reverse engineering innovation. An approach where you provide top-down directional input and seek bottom-up feedback on the perceived value & reality.
3. Seek Ring Fenced Investments: It goes without saying that there needs to be an alignment with the ‘Business Strategy’ but current times demand committed resources to ‘Create the Future’.
4. Instill a Culture of Hack: Enterprises thrive when there exists a culture that fosters innovation. Digital Native businesses have demonstrated time and again that when individuals or groups function with an intent to build something outside of regular, they innovate faster. Company wide Hackathon’s is an initiative (not new) that is fast growing as a culture across many Enterprises. I have seen employees continue to build on the ideas that geminated during the time of hack, through the year. It also gives a sense of purpose for individuals to innovate and contribute to the broader agenda of innovate with a purpose.
5. Iterative Innovation: Delivering a successful product is central and the strategy should be about how you are going to get there. Considering #1-4, iterative is the name of the game. Incremental showcase of progress is vital to striking executive closure. 

In summary, Innovation in isolation or without an alignment to the vision of a company/group is of no relevance. Many organizations look at embracing new technologies to innovate, and at some point, they experience a void on the core purpose. Hence it is important for a CTO to provide a certain boundary and perspective before an individual/group traverses the trail of innovation. I personally believe that with autonomy and no bureaucracy, comes a responsibility and accountability to align to the core purpose and goal post to ensure the outcomes remain in the purview of a Business Strategy.