Kriti Patel
TLDR:
Key Points:
- 42% of organizations are expanding their innovation networks in new directions by collaborating with partners outside their industry.
- Industry hybridization, driven by technology and data, is leading to new and innovative business models.
Four in ten companies are looking beyond their traditional boundaries to seek new ideas and innovation. This trend of industry hybridization is disrupting the conventional rules of innovation. A recent survey of 248 executives conducted by Deloitte and Fast Company revealed that organizations are collaborating with partners from diverse backgrounds such as venture capital firms, industry associations, and consultants to break down silos and enhance their innovation capabilities.
Technology and data play a crucial role in enabling this shift, allowing companies to tap into new expertise and resources that can accelerate transformation. This has led to examples like logistics companies leveraging data to create new offerings with insurance companies and car manufacturers exploring service-based business models within vehicles.
While industry hybridization offers significant value in terms of consumer experience and business impact, it also poses risks such as moving into adjacent industries where core expertise may be lacking. Companies need to carefully consider partnerships, talent requirements, and competition to succeed in this new model.
As technology continues to evolve, industry boundaries will continue to blur, driving further innovation and creating new opportunities for businesses willing to embrace this change.
