ESCP ALUMNI MAGAZINE - #189 - MARS/AVRIL 2020 - 55

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Innovation: challenges
and opportunities
Innovation has always been a major concern for companies.
However, they are struggling to handle innovation in an efficient
way. Perspective from Katerin LE FOLCALVEZ (88), Partner at
Insigniam.

Katerin LE FOLCALVEZ (88)

Why is innovation a major
concern for companies?
Nowadays, most companies and industries
are facing impor tant disruptions. In this
context, innovation is perceived as a relevant
solution to face these disruptions. However,
we have noticed that "being innovative" is not
enough. Indeed, the creation of a culture of
innovation or the production of innovation
has to be consistent with and related to
the challenges faced by the company on its
markets.

How does Insigniam tackle this
subject and how do you support
companies on this specific ground?
We first take into consideration what the
companies are trying to achieve from a
strategic standpoint and what challenges
they are trying to address short-, medium-,
and long-term. To increase the companies'
capability to innovate, we notably rely on
a method that merges our know-how in
breakthrough and innovation. To make
innovation a true lever of performance an
organization should look to have four critical
pillars in place:
› A strong leadership mandate: Why is
innovation vital to our success, how will it
serve our strategy?
› A dedicated infrastructure (people and

means) that includes how to measure ROI;
› A proprietary process which reflects and
accounts for the unique culture and assets
of the company. What has worked in
company A may not work in company B;
› A supportive culture. This is the most
challenging and the most critical pillar.
Empowerment without fear of failure
needs to be nurtured.
A company that focuses on these pillars will
increase its ability to grow and constantly
adapt to disruption. It will also enable the
company to spread innovation aspects
and domains of the organization beyond
products.

What are the challenges
according to you?
The main challenge is to distinguish the type
of innovation we are considering. Executives
must identify those unexplored areas of
potential evolution that lie between today's
business and tomorrow's possibilities:
› Horizon 0 refers to innovation on internal,
legal and regulatory process;
› Horizon 1, also called "the core", refers
to the creation of near-term growth
by expending current customers and
products (think new flavors for a product);
› Horizon 2 refers to fueled growth by
finding emerging opportunities and building

capabilities and new businesses adjacent to
current customers and offers;
› Horizon 3 refers to transformation in
order to seed options today for future
profitable growth in new markets and new
customers and create new income stream;
› Horizon 4 refers to game-changing
products, services, processes, strategy or
culture. It is about reshaping the company's
or industry's future and inventing new
rules.
The consideration of these horizons enables a
company to put resources at the appropriate
level.

What piece of advice could you give our
readers on this question of innovation?
Do not look at innovation as the solution
but focus on what you want to achieve and
the major concerns you want to address.
Nowadays, there are a lot of fashionable tools
and approaches around innovation (design
thinking, Lab...). In this context, the challenge
is to use them to serve your commitments,
not be mesmerized by the "flavor of the
month." I also believe it is impor tant to
always explore longer term horizons (3 and
4 mainly). Experience has shown that when
a company addresses them, all the other
horizons are covered.

ESCP Alumni Magazine numéro 189  ❙  MARS/AVRIL 2020

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ESCP ALUMNI MAGAZINE - #189 - MARS/AVRIL 2020

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