These are very valid and typical questions. They could also be right in their own way, depending on which angle you view them from and what time-zone within the organisation that you are operating in. (more on time-zones will be shared in Part 2 of this article.)
In Part 1, I share my thoughts on when is the right time for companies to invest in innovation, especially in POCs, pilots, and scaling. The key is timing, which can make all the difference between falling behind and moving ahead.
When is the right time for companies to invest in innovation? It is all about TIMING!
When is the right time for companies to invest in innovation? It is all about TIMING!
Let us take a look at Gartner’s Hype Cycle which gives us a useful lens. Every technology goes through a similar journey, from the peak of inflated expectations to the trough of disillusionment, then to the slope of enlightenment, and finally the plateau of productivity. The question for corporates therefore is not whether to act, but when they should act.
From my perspective, the right rhythm is clear.
- Prepare before the peak. This is when you identify use cases, align internally, and build awareness so that when the hype comes, you are ready.
- Kick off a small POC just after the peak. By then costs are stabilising and you can test your use cases in a more focused way.
- Pilot through the trough. This is where many give up, but in fact it is the stage where costs fall, vendors consolidate, and use cases mature, and
- Scale on the slope. Those who prepared, tested, and piloted will be ready to deploy at speed and capture maximum benefits while others are still trying to catch up.
Implementing emerging technology goes way beyond technical feasibility. Given that people’s skillset and mindset often fall behind technology trends, it often takes time for an organisation to prepare internally. By taking a stepwise approach, it allows the organisation to get ready for the change. Staff members need to be ready in terms of mindset and awareness. Training is required, processes must be changed, planning has to be put in place, and budgets need to be secured. Starting POCs early provides the runway to prepare for all these activities.
Otherwise, if the organisation waits until the slope to begin, it may need another 12 to 18 months just to get ready, by which time the technology could already be reaching its plateau and moving towards obsolescence. The organisation may then have only a short ROI runway.
Of course, POCs should be framed as experimentation and learning, with risks managed through partnerships, co-innovation, or possibly grants. Organisations should also have a mechanism to kill POCs that are not successful, without feeling obligated to launch them into production.
ROI should also be viewed in terms of risk avoidance, compared to the bigger losses that come from skipping POCs and jumping straight into full implementation of a mature technology that might later fail. Investments in POCs should not be measured like typical projects on their immediate returns. Rather, these should be seen as investments in learning and development, and as a form of risk insurance.
POC is a form of Risk Insurance
POC is a form of Risk Insurance
Of course, not everyone will agree with this rhythm. Some will argue that even after the peak, technologies are still immature and POCs can waste resources. Others will say not every company needs to be an early mover, and for many it is safer to be a fast follower. Internal readiness is also more about culture than time. Without leadership buy-in, even long runway POCs may fail. And technologies at the plateau are not always obsolete. Cloud and ERP systems, for example, remain valuable. Hype cycles and budget cycles also rarely match, and timing will vary by sector.
While using the Gartner Hype Cycle is a possible reference and my suggested innovation stages as a general guide to ride the innovation wave, there is no perfect formula. Every organisation has to decide when to step in, depending on its industry, risk appetite, and culture. Further, there are also the case of multiple emerging technologies cycle at play at the same time. This further complicates the innovation and POC approaches.
Doing nothing or waiting too long is the surest way to fall behind!
Doing nothing or waiting too long is the surest way to fall behind!
However, one thing is clear that by doing nothing or waiting too long is the surest way to fall behind. The hype cycle will always rise and fall. What matters is whether leaders prepare early, act with discipline, and guide their organisations to adapt along the way. Those that do will be ready to capture opportunities, whatever stage the curve is at.
Writted by Edmas Neo
