Innovation Consultancy Insights

Should you try Google’s famous “20% time” experiment to encourage innovation? We tried this at Duolingo years ago. It didn’t work. It wasn’t enough time for people to start meaningful projects, and very few people took advantage of it because the framework was pretty vague. I knew there had to be other ways to drive innovation at the company. So, here are 3 other initiatives we’ve tried, what we’ve learned from each, and what we're going to try next. 💡 Innovation Awards: Annual recognition for those who move the needle with boundary-pushing projects. The upside: These awards make our commitment to innovation clear, and offer a well-deserved incentive to those who have done remarkable work. The downside: It’s given to individuals, but we want to incentivize team work. What’s more, it’s not necessarily a framework for coming up with the next big thing. 💻 Hackathon: This is a good framework, and lots of companies do it. Everyone (not just engineers) can take two days to collaborate on and present anything that excites them, as long as it advances our mission or addresses a key business need. The upside: Some of our biggest features grew out of hackathon projects, from the Duolingo English Test (born at our first hackathon in 2013) to our avatar builder. The downside: Other than the time/resource constraint, projects rarely align with our current priorities. The ones that take off hit the elusive combo of right time + a problem that no other team could tackle. 💥 Special Projects: Knowing that ideal equation, we started a new program for fostering innovation, playfully dubbed DARPA (Duolingo Advanced Research Project Agency). The idea: anyone can pitch an idea at any time. If they get consensus on it and if it’s not in the purview of another team, a cross-functional group is formed to bring the project to fruition. The most creative work tends to happen when a problem is not in the clear purview of a particular team; this program creates a path for bringing these kinds of interdisciplinary ideas to life. Our Duo and Lily mascot suits (featured often on our social accounts) came from this, as did our Duo plushie and the merch store. (And if this photo doesn't show why we needed to innovate for new suits, I don't know what will!) The biggest challenge: figuring out how to transition ownership of a successful project after the strike team’s work is done. 👀 What’s next? We’re working on a program that proactively identifies big picture, unassigned problems that we haven’t figured out yet and then incentivizes people to create proposals for solving them. How that will work is still to be determined, but we know there is a lot of fertile ground for it to take root. How does your company create an environment of creativity that encourages true innovation? I'm interested to hear what's worked for you, so please feel free to share in the comments! #duolingo #innovation #hackathon #creativity #bigideas

Have you ever considered appointing an “Innovator in Residence”? Many organisations invest heavily in innovation programs — but struggle with alignment, governance, and momentum once the workshops end. In startup accelerators, venture capital firms, and business schools, Entrepreneurs in Residence are seasoned founders and venture leaders who provide strategic guidance and oversight, helping new ventures scale with discipline. What if corporates, government agencies, or small-to-medium firms applied a similar model? Enter the Innovator in Residence — your corporate version of an Entrepreneur in Residence, delivered as a practical embedded innovation partner, bringing strategy, governance, and execution expertise directly into your teams. This is someone who works alongside your teams and leadership to: • Align innovation initiatives directly to strategic priorities • Bring executive-level portfolio visibility and decision discipline • Reduce risk through structured governance and clear evaluation frameworks • Lead quarterly strategy sessions and innovation portfolio oversight • Support teams through innovation projects and initiatives, offering guidance, mentoring, and coaching to ensure progress and results • Bridge the gap between strategy and execution, helping teams deliver tangible results • Build internal capability and embed innovation beyond one-off programs • Maintain momentum between major programs and leadership changes The result? Innovation becomes embedded, disciplined, and sustainable — supported by experienced, independent expertise. I’ve seen firsthand how this model helps corporate, government, and small-to-medium organisations accelerate pipelines, embed repeatable frameworks, and sustain innovation beyond one-off initiatives. If this idea resonates, or if you’re curious how an Innovator in Residence could work in your organisation, I’m happy to share what this looks like in practice. #leadership #innovation #strategy #transformation #organisationaldevelopment

Corporate Venturing Squads & Open #Innovation. Corporate venturing squads (CVSs) are a groundbreaking new kind of multi-partner strategic alliance formed by a small group of corporations joining forces to innovate with one or more start-ups. They represent a novel governance structure enabling corporations to pursue corporate innovation as a team alongside #startups . •Emerging Trend: CVSs are an emerging trend in the innovation ecosystem, increasing steadily across five continents. This trend is driven by widespread competition, fast-moving markets, limited resources, technological disruption, geopolitical uncertainty, and regulatory overhaul, suggesting that collaborative relations are more important than ever. •Open Innovation Catalyst: CVSs serve as a catalyst for adopting open innovation, where members collaborate by sharing unique information about specific innovation challenges. This allows corporates to increase their value proposition to start-ups and gain access to assets and capabilities for competitive advantages. •Typology of CVSs: CVSs are not all equal and can take various forms. The study provides a typology of six distinct categories based on two criteria: the main activity (Scouting, Testing, Investing) and the frequency of collaboration (One-shot, Recurring). The six types are Scouting force, Scouting platform, Joint proof of concept (PoC), Partnership, Co-investment, and Joint fund . •Potential Benefits: Joining a CVS offers specific benefits for corporate innovation. The top reported benefits are - ◦Better access to start-up deal flow: (37% of benefits) Allows sharing scouting capabilities and provides a more attractive value proposition to start-ups than working alone. ◦Improved network access: (29% of benefits) Enhances the corporate's network position in the innovation ecosystem. CVSs often reinforce existing relationships, with 80% involving companies that had previously worked together. ◦Learning and sharing best practices: (26% of benefits) Provides access to new knowledge and acquisition of best practices. ◦Improving credibility and visibility: (4% of benefits) Enhances the firm's standing, though less critical for already large, established companies. Source -  IESE Business School Report EmpowerEdge Ventures

Most corporate innovation labs don't survive long enough to matter. They launch with beanbag chairs and big promises, then quietly disappear two or three years later, leaving behind expensive furniture and the faint smell of failed ambition. One study put it plainly: fewer than half of corporate incubators meet their strategic objectives. The innovation lab for Ingenico, a France-based giant in the payments industry, has been running for twelve years. I spent time with Romain Colnet, who has led the lab through much of its lifecycle, to understand what made the difference. A few lessons: 1. The lab started with a genuine threat, not a trend. Ingenico makes payment terminals, i.e. those devices you tap your card on at checkout. When mobile payments began to emerge, the company asked itself a hard question: what happens if smartphones make our entire product line obsolete? That's where the lab came from, an existential fear. 2. Executive ownership, not executive cheerleading. Most innovation programs report to a well-meaning senior leader who offers warm words but limited intervention. Ingenico required that every project have a single owner at the executive committee level. This is someone who can say, "I want this on my roadmap" and mean it. 3. Venture thinking in a corporate body. The lab expects projects to fail. Venture capitalists understand that, on average, six out of ten investments will fail completely. Corporate innovation labs need the same mindset. Ingenico has learned to accept that some projects won't work out, but only after testing them in the real world. "You should always try your project in the field because that's where you learn the biggest amount of useful information," Colnet advises. "Most of the time it's not what you expected, which is perfect." 4. Patience about timing. Some ideas went on the shelf for years, then came back when the market caught up. That kind of disciplined restraint is rare. My full piece is in Forbes (Link in the comments) Heed this advice from Colnet: "You should not start a lab in companies that are not accepting that you sometimes do not succeed in what you're trying. Learning is part of the process. If companies are not willing to take risks, to be bold, to move fast and to get some people that are totally thinking differently from the company, then there's a low chance you will succeed."

Modern corporations are creating innovation ecosystems where internal teams work directly with portfolio companies, sharing resources, expertise, and market access. This integration goes far beyond traditional corporate-startup partnerships: ➡️ Shared Technology Platforms: Portfolio companies gain access to proprietary corporate platforms and APIs, while corporations benefit from rapid external innovation cycles. ➡️ Cross-Pollination of Talent: Employees move between corporate R&D teams and portfolio companies, creating knowledge transfer and cultural bridges. ➡️ Collaborative Product Development: Joint development projects between corporate teams and startups are becoming more common, leading to products that neither could create independently.

🚫 Stop wasting millions on innovation. I’ve seen too many corporate innovations fail — not because of a lack of effort or brilliant minds. The real problem? Companies rush to build and push new products. They chase perceived problems. Leadership spots a trend — maybe it’s AI, maybe it’s a competitor’s new feature — and the directive follows: 👉 “Go build that!” But here’s the truth: 💡 We’re addicted to solution. We build solutions in search of a problem. We get excited by the what, but we don’t deeply understand the why. Ask yourself: - How many internal tools just sit unused? - How many features launched that solved no real pain? - How much tech was bought without first understanding the core business challenge? 👉 The most impactful innovation doesn’t start with a product idea or technology. It starts with deep understanding of the problem space. And that’s hard, uncomfortable work. It means: 🔹 Understanding human behavior — seeing how people struggle and adapt. 🔹 Challenging assumptions — asking why things are done this way instead of accepting the status quo. ✅ Can you clearly state the problem? ✅ Is it validated with evidence? ✅ Does it impact real people? If not, your solution is a gamble — a shot in the dark that wastes time, money, and energy. Let’s change corporate innovation culture. Before you approve the next solution: 👉 Challenge your teams. 👉 Make them articulate the problem clearly. 👉 Demand evidence. A problem-first approach isn’t slower. It’s smarter and more impactful. #Innovation #CorporateInnovation #ProblemSolving #DesignThinking #ProductDevelopment #IgnoredTruths #BusinessTransformation

Here are 10 things I've learned about corporate innovation (including venture building, spin-ins/spin-outs, venture studios, startup partnerships, CVC and more) from some of our guests on the Beyond the Core podcast: 1. From Sharon Rodriguez, CEO at HighPeak AI (within Prudential): The upside of a corporate investor is runway. The tradeoff is speed. As Sharon says, "There is a tax you pay," but there's also huge upside to building new ventures within large corporates, including fewer distractions, a stable backer and an investor aligned to long-term value. 2. From Simon Ratcliffe @ DNV: Spinouts are a solution to a scale problem. Big companies can only run so many meaningful, growth-oriented innovation projects internally. The spinout is a tool to accelerate that process. 3. From Peter Roeber, MBA @ Gore: Venture building inside Gore starts with adjacent advantage. Peter's approach isn't crazy moonshots, it's leveraging existing assets in new ways. I love this approach for big companies--asset-based innovation--because it has the potential for competitive/unfair advantage (if you find a real user/customer need). 4. From Ed Essey @ Microsoft: Great intrapreneurs think like heist movie masterminds. They know how to read the system, recruit the right crew and plan the "escape" before they've even pitched the idea. I thought this was a great metaphor! 5. From Maja Lapcevic @ Mastercard: Speed starts in the back office. If you want to partner successfully with startups, you need all the administrative stuff to be optimized: legal contracts, vendor onboarding, risk-adjusted compliance, etc. Mastercard can execute pilots in 4-6 weeks! 6. From Eric Ries, author of The Lean Startup: Innovation evolves in phases and what works in one phase will fail in the next. So true. You might start with grassroots experiments to prove you can do something. Then you can get executive conviction, and then go for deep systems change. 7. From Kal Amin @ 1848 Ventures: If you want to build a corporate venture studio you need a clear mandate and you have to stick with it. You can't chase shiny objects or go after random opportunities that aren't a strategic fit, with no right to play/win. 8. From Todd James (previously at 84.51/Kroger): GTM is where adjacency dreams go to die! The best adjacent businesses balance independence with shared go-to-market clarity. If the customer doesn't know who to call, your innovation dies in the inbox. 9. From Leandro Balbinot @ Amazon / Whole Foods: Innovation is a tactic, not a destination. Not every problem needs innovation. Innovation teams waste too much time applying "big ideas" to problems that don't require them. 10. From Amar Varma (founder / investor): Executive air cover is a must. Trust is a must. If you don't have the CEO of the company infinitely excited and positive, you might as well not do it. Wanna learn more? Find "Beyond the Core" on all major podcasting platforms.

🧠 Innovation isn’t a department. It’s a culture. 💡 The future belongs to companies where every employee becomes an innovator. Not just those in R&D or tech. Not just those with “Innovation” in their title. But here’s the truth: 👉 Tools like GenAI, low-code platforms, or digital labs aren’t enough. Creating a culture of everyday innovation requires something deeper: 🧭 A shift in how we lead, structure, and empower our organizations. Here are 4 shifts every company must make to unlock innovation from the inside out: 1️⃣ Redefine leadership 2️⃣ Break resource rigidity 3️⃣ Measure learning, not just outcomes 4️⃣ Systematize learning loops Over the past 20 years, leading transformation across 50+ countries, I saw these same patterns—and the same blockers—over and over again. That’s why I created the Changics 5M for Innovation™: A practical framework to embed innovation into the way organizations lead, operate, and grow —by activating the potential of every employee. 🎯 The goal? To move innovation from isolated teams… To a shared responsibility, powered by culture. The 5Ms 👇 Mandate → Innovation starts with leadership signals and permission to act Mechanism → Build the systems for safe experimentation Mobilization → Surface ideas from all levels, not just the top Mapping & Amplification → Scale what works, fast Momentum → Sustain innovation with culture, recognition, and feedback loops My perspective: We don’t need more labs. We need more everyday innovators. That means dismantling bureaucracies, rewiring cultures, and shifting mindsets from: 🛑 “That’s not my job” → ✅ “How can I contribute?” Innovation becomes possible when we stop treating it as a “project”… …and start building it into the operating system of the organization. 💭 Reflection for you: If innovation truly belongs to everyone… 👉 What would YOU need to change tomorrow in your leadership, systems, or culture to make that real? — Soraya Espejo | Changics Architecting People-Centric Transformation | Powered by AI 🖼 Framework: Changics 5M for Innovation™ (Infographic 👇)

Today, Knowledge at Wharton features our Mack Institute for Innovation Management #CorporateVenturing report co-authored with Valery Yakubovich, Gary Dushnitsky, Claudio Garcia. https://lnkd.in/gRkitVh3 🚀 When Goliath Needs David: How Corporations and Startups Are Redefining Corporate Venturing The report signals a major shift in how large companies engage with startups. 👉 Once seen as disruptors, startups are now essential partners in solving corporate challenges. 👉 Corporate venturing is no longer experimental — it’s a cornerstone of business strategy. Some key insights from the report: 📊 Mainstream adoption: Over 50% of the world’s 500 largest companies engage in accelerators, incubators, or corporate venture capital programs. 🌍 Global spread: European companies are the most vocal about venturing, while tech and finance lead globally in adoption. 🎯 Six core objectives: Firms turn to startups not just for innovation, but also for risk management, market expansion, ecosystem building, social & environmental impact, and entrepreneurial culture. ⚡ New models rising: Venture Clienting (where corporations become a startup’s first customer) is gaining traction — nearly 40% of companies now use this as a fast, low-risk innovation tool. 🌱 Beyond business: Corporate venturing is increasingly tied to sustainability and ESG goals. 💡 The big takeaway: Corporate venturing has matured into a strategic management practice, blending the scale of Goliath with the agility of David. The future of growth and innovation lies in these alliances. #Innovation #startups The Wharton School

Venture Client in a Nutshell This will help you if you need a faster route to results. Or you are still stuck in pilot mode. You’re not alone. Most corporate innovation programs die in what I call the Pilot Super Parylisis Why? Because they start with excitement and end with zero impact. Here’s what the smart ones do instead: They adopt a Venture Client model. What is it? A structured way for companies to become customers of startups, not just sponsors of experiments. No equity. No accelerators. Just one thing: solving real problems by buying real solutions. BMW Manufacturing Co., LLC did it. It built its Venture Client Unit, BMW Group Startup Garage, to integrate cutting-edge tech directly into its supply chain. Bosch and Siemens followed. Today, dozens of industry leaders are skipping the sandbox and going straight to scale. Want to start your own initiative? Start here: 1. Identify high-priority pain points. 2. Design a problem brief with business owners. 3. Scout solutions already in the market. 4. Run a commercial pilot with KPIs tied to real adoption. 5. If it works, scale it. If not, kill it fast. This isn’t innovation theater. It’s innovation with teeth. Ready to stop piloting and start buying? #CorporateInnovation #VentureClient #StartupCollaboration Smyrna Labs #OpenInnovation #InnovationStrategy #ExecutionOverExperimentation