“You do not rise to the level of your goals. You fall to the level of your systems.”

Investment in corporate innovation is at an all-time high. So why do 80-90% of innovation centres still fail?

We studied 100 companies to identify what makes the world’s best innovators tick. What we discovered is that the vast majority of effective innovation efforts can be explained in just five simple categories, and selecting the right ones to suit your organisation is the difference between success and failure. So we developed a system that helps corporates select the right mix of innovation initiatives to be in the 10% that succeed.

A quick introduction to the 5 Ways.

In this presentation, Amer Iqbal gives an overview of the three biggest problems facing corporate innovation today, and proposes the 5 Ways to Innovate framework as a simple way to overcome the barriers.

Video runtime: 13 minutes, 36 seconds

Prefer an infographic? We got you.

This one page infographic gives a detailed breakdown of the three problems with innovation, along with a summary table of the 5 Ways to Innovate.

Download the PDF

A system to close the innovation gap.

By studying over 100 companies, we discovered that most failures occurred because of a lack of structured innovation systems. The best innovators on the planet focus on just these five simple categories of innovation tactics.

Video runtime: 1 minute, 20 seconds

The 5 Ways in a nutshell…

What it is
Building innovation capabilities by developing the skills of your workforce and structuring them for success
What it solves for
“In order to be an innovative company, we need our people to be innovative”
What it typically looks like
Introduction of new ways of working, restructuring and cross-pollination of skills from one area of the business to another
When to use it
“Let’s evolve together towards the business of tomorrow”
Strengths
- Easy to quantify activity
- No one feels left out
- Easy to integrate solutions into core business
- Reduces internal resistance to innovation
Limitations
- Innovation outputs are slow
- Brings up the rear rather than leading from the front
- Requires heavy ongoing investment
Conditions for success
- Prioritise learning by doing
- Include leadership in the learning agenda
- Success metrics to focus on innovation outputs, not just vanity metrics
What it is
Create a playpen to redefine existing problems and find solutions via experimentation, unhinged from legacy
What it solves for
“How would we solve this business problem if we had to start from scratch?”
What it typically looks like
An external facility with gadgets and funky design, filled with entrepreneurs who are able to experiment on core problems using new methodologies
When to use it
“We know we need to innovate but it’s too difficult within these four walls”
Strengths
- Attracts innovation talent that the core business can’t
- Allows experimentation away from legacy orthodoxies
- De-risks innovation from the core to an external function
Limitations
- Difficult to integrate solutions back to the core business
- Can create resentment from those not included
- Can become a POC factory
Conditions for success
- Focus business problems on the adjacent innovation space (not core or transformational)
- Align strategy to core organisation
What it is
Building a function that is able to launch disruptive, co-resourced startups from within the organisation itself
What it solves for
“How would we capture this opportunity if we were a startup?”
What it typically looks like
Teams of external experts are hired to build one or more new, standalone venture that changes what the core business does and/or how it’s done
When to use it
“The future of our business is…”
Strengths
- Tap into a talent pool you couldn’t access otherwise
- Direct line of sight to innovation outcomes through ventures
- Unlocks the potential of the best talent within your organisation
Limitations
- Few organisations understand how to balance autonomy with the disproportionate benefits of the incumbent
- Difficult to retain external entrepreneurs beyond launch
Conditions for success
- Reporting line to the CEO who can bridge between board and entrepreneurs
- Acceptance of short-term revenue cannibalisation
What it is
An external program that gives startups resources to scale their business, investing opportunistically in those that offer value to tomorrow’s business
What it solves for
“What are the innovation opportunities we’re not exploring ourselves?”
What it typically looks like
Co-working space filled with startups who are given funding, mentoring and other resources for a fixed period in order to assess their potential value to the parent
When to use it
“We know the general direction of tomorrow’s business, but don’t know where to start”
Strengths
- De-risks failure from the core organisation, allowing for exploration
- Unlocks solutions from the market that can’t simply be bought with money
Limitations
- Relevance of startups to the parent is often low
- Many organisations struggle to support startups beyond co-working spaces and funding
Conditions for success
- Earmarking investments as risk capital
- Success metrics that are mutually beneficial to corporate and startups
- Diversified selection criteria to cast the widest net
What it is
Letting the market do the legwork of innovation, scanning for and attracting external partners to innovate on specific parts of the business
What it solves for
“What could we come up with if we had access to a global pool of innovators?”
What it typically looks like
Small internal functions with a remit to assess and invest in innovation from the market via open API platforms, hackathons, startup sensing & scanning
When to use it
“We’re looking for unexpected opportunities that could define the direction of tomorrow’s business”
Strengths
- Minimal investment required in early stages
- Shifts responsibility of innovation to the market, requiring only investment mindset to succeed
Limitations
- Requires leadership to let go of control and adopt a passive, long-term view
- Not all organisations are equipped to act as investor
Conditions for success
- Governance structured to be similar to a VC
- Mandate to demonstrate intangible results that can change over time
- Investments focused on long-term, disruptive innovation

So which is the best way to innovate?

This is the most common question people ask upon seeing the 5 Ways to Innovate for the first time. The answer is: the most innovative companies on the planet treat innovation like a portfolio and have multiple bets in each of the 5 ways. We recommend at least three ways be covered by any company, using a simple 70/20/10 percentage split to ensure investments are balanced.

See how we help companies innovate

Where did the 5 Ways to Innovate come from?

The 5 Ways to Innovate framework was created in 2017. Amer Iqbal and his team embarked on an analysis of 100 companies to find the commonalities in their approach to innovation. The resulting keynote has since been presented at dozens of high profile industry conferences and even years later it remains Amer’s most in-demand speaker topic. This eventually snowballed into demand from corporates to help analyse their innovation portfolio and run workshops to help improve the effectiveness of their investments.

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How can I find out more about the 5 Ways to Innovate?

Due to the overwhelming demand for this topic, Amer Iqbal decided to embark on the journey of turning 5 Ways into a book. Along with co-author Roshan Chhotu from Google, they decided that there were too many same-samey business books out there. The resulting concept is a pop culture guide to corporate innovation - as entertaining as it is practical as it guides innovators through how to build an effective innovation portfolio in just 100 days.

Get the 5 Ways to Innovate book