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Human or Abstract? Defining Your Conversational Brand Experience

Gender, name, visual identity and personality all factor into what a brand should sound like.

Consumers are becoming increasingly comfortable with voice technology. Digital assistants, whether chatbots or voice agents, can bring brands to life in new ways, adding personality, differentiation, warmth – and even humor. They can turn static digital experiences into dynamic conversations, deepening the connection between brands and their customers.

The Conversational Brand: Strategy for a Digital-First World report by Altimeter, Prophet’s research arm, outlines the key decisions to consider to bring a conversational experience to life. The report seeks to answer the following questions:

  • What is the role of the conversational experience in the broader brand portfolio?
  • How closely linked should it be to the master brand?
  • What use cases will it deliver on?
  • What benefits will it bring to its users and to the company?

If the goal of the conversational experience is owned by one product or channel, it may look and talk very differently than if its role is to represent the master brand and provide a connective thread across different touchpoints.

Human or Abstract: That Is the Question

First, one must decide how to design the persona –either human-like or abstract. The main factor that should influence this decision is the strategic intent of the conversational experience: is the goal to humanize the brand? To create a deeper relationship with customers? To stand out in the market with a relatable character? If the answer to these questions is yes, then a human-like persona may be preferred. If, on the other hand, the goal of the experience is to automate repetitive tasks, to increase the speed of transactions, or to simplify processes in the background, then an abstract persona may be preferred.

In practice…

When AXA asked Prophet to create a conversational experience, we aligned on some clear strategic objectives: deepen customer engagement while humanizing the AXA brand as it was making the shift from payer to partner. A human-like avatar made the most sense, and so Emma was born. We built Emma to become an empathetic navigator, helping customers easily navigate the journey – from accessing services and making claims to reviewing health information and checking symptoms.

“The experience is futuristic and high-tech to create a futuristic and high-tech identity.”

Choosing a human conversational identity is an approach other companies are finding success with, as well. For example, Microsoft recently announced that it would turn Xiaoice, its highly empathetic chatbot, into her own entity, paving the way for new licenses and ventures.

Microsoft has described this virtual teenager as “sometimes sweet, sometimes sassy and always streetwise.” She’s fond of joking with users, even offering encouraging advice on life and love. With 660 million users worldwide, Xiaoice works on multiple chat services and is trained on data that Microsoft gleaned through the Bing search engine.

In addition to its abstract Google Assistant, Google is developing Meena, a human-like avatar that observers expect to deliver the best conversational AI yet.

But for some purposes, abstract identities offer more possibilities. For example, Bixby, Samsung’s digital assistant, is designed to help customers unlock their Samsung devices’ full potential. Bixby is an always-on feature. But instead of simply following commands, it’s built to have conversations. It encourages exploration and offers insightful curation, all the while making the everyday tasks feel easier.

In other words, it acts as a users’ bright sidekick, bringing together more information than a human could possibly manage. And while the technology is friendly, its features are best expressed through an abstract experience, not a human one. The experience is futuristic and high-tech to create a futuristic and high-tech identity. Even its name is not human, which allows it to appear and perform consistently in markets worldwide.

Developing Your Brand’s Conversational Identity

Once a company has decided what type of AI assistant it will create, there are still many decisions to make in developing its identity. For example, we established guidelines for the many ways Emma communicates with consumers, allowing personality to shine through in every interaction. She is curious, smart and thoughtful, determined to help users take care of their physical, financial and emotional well-being. Even her physical appearance is distinctive: She’s an approachable Pan-Asian woman with a little French flair.

Often, these seem like minor details. But digital assistants are functional, transactional touchpoints that benefit from small, purposeful doses of personality, including:

Gender

Users expect a gender even in abstract assistants. If it’s not immediately apparent, they’ll often ask. Both Apple’s Siri and Amazon’s Alexa, for example, are positioned as vaguely female. And Samsung made this question a core part of the Bixby’s user experience, with devices prompting people to assign Bixby a voice that is either male or female.

Names

Even beyond suggesting gender, names are a key part of developing an identity. Some names sound young. Some sound formal. Choosing a too familiar name might at first make customers think they’re dealing with an actual human. And some names have specific class, geographic or even religious associations.

Visual Representation

Since users see these assistants while they are talking, aesthetic considerations are important. These questions go far beyond simple graphic design and are at the heart of strategic positioning. Should the assistant look like it is closely connected to the master brand? Should the visuals be able to translate into more extensive advertising efforts? Or can it take on new dimensions, possibly paving the way for new offers, markets and customers?

Personality

Customers will only respond to digital representations that are likable. Like in real human relationships, personality traits shape communication. Should it be bold? Curious? Serious? Funny? Thoughtful? Clever? A Gen Z customer expects a different type of conversation than a Baby Boomer does. Use cases also matter – customers probably won’t feel like joking if they’re sick or just lost their credit card.

But ultimately, the best choices all support the strategic foundation, turning digital assistants into brand allies. And built carefully, with thoughtful updates as more data is collected, they can spark growth and deepen digital connections.

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FINAL THOUGHTS

When designing the conversational experience’s identity, merely finding an interesting avatar or mascot is not enough. It is crucial to consider the strategic imperatives to make the experience consistent with the master brand.

Interested in developing a powerful digital experience and virtual assistant for your brand? Contact us today.

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Post-COVID Shared Spaces: From Response to Reimagination

Shared spaces need to be reimagined. Here’s how to deliver thoughtful experiences and services.

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COVID-19 has changed our perceptions of physical spaces. It has caused an upheaval in how we work, shop, interact with one another and so much more. But as society re-opens, we need to move past the short-term “fixes” that many essential businesses introduced during the onset of the crisis and think about the long-term implications of what comes next.

Businesses and brands need to understand what are and what will be, the drivers of customer behavior in this next period so that they can reimagine their experiences and services to deliver against them. Without question, digitally-enabled experiences will play a major part of the “new possible” and brands need to respond and prepare their organizations today.

Read our guide to learn:

  • What does the “new possible” look like and how to accelerate transformation
  • Where to start and what are the steps required to develop the right strategy and new experience principles
  • What are the next generation experiences that will define how to operate effectively in this new environment

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Five Consumer Trends Impacting Future Business Growth

Self-care, moving from “I” to “we,” and a reshuffled e-commerce world shake-up experience expectations.

The COVID-19 pandemic will have a long-lasting impact on businesses and their customers. Some industries have been disrupted, while others thrive despite the crisis. Leading through disruptive times requires businesses to consider new consumer perspectives, rethink their value propositions and further accelerate their digital transformations. At Prophet, we have identified two imperatives that will help businesses achieve uncommon growth in the post-COVID-19 world: adapting to the new normal consumers and accelerating digital transformation.

Considering Asia is ahead in getting back to a new normal, in this series, we will delve into the underlying consumer trends, social and technological enablers as well as emerging patterns of digital transformation that all work to point out new opportunities in Asia and also soon to be in the rest of the world.

Adapting to the New Normal Consumers: Five Major Customer Experience Trends

In order to reimagine your business, you must first understand the new consumer habits, perspectives and expectations arising from the pandemic. COVID-19 does not change the fundamentals, but it is accelerating the trends that were underway. As consumers are immobilized at home, they are forced to rethink how we work, learn, live, entertain, stay healthy and buy. Such seismic changes are a wake-up call for companies to rethink their value propositions and accelerate digital transformation.

1. More “We” Less “I”: A Greater Sense of Community and Social Responsibility

After years of rising individualism and personal expression, the pandemic has sparked a greater sense of community and civism. As social interactions are limited, the post-COVID-19 world will be one that is characterized by a shared desire for deeper, more meaningful connections both with others as well as the planet.

Companies will be held accountable for their business decisions more than ever. Fashion, for example, will accelerate its efforts to deliver more sustainable and responsible products through a cleaner value chain. In response to this trend, global companies are taking the initiative to become more eco-conscious. In May 2020, fashion label The R Collective launched its Denim Reimagined collection using surplus denim from Levi’s jeans. Officially endorsed by Levi’s, the upcycling collection was launched at Levi’s flagship store in Hong Kong.

Deeply impacted, the travel industry will also need to reinvent itself to match the new travelers’ expectations. Post-lockdown, travelers will not only expect the highest degree of protection and hygiene, but they will also travel with a renewed sense of purpose and sensitivity towards the health of people and the planet. They will actively search for activities and experiences tied to communities and look for greater transparency on sustainable measures taken while on the road.

2. Home Sweet Home: A Safe Haven Where Everything Happens

While the world can expect a surge in attendance at theatres, bars and gyms once quarantine measures are lifted, many consumers will have already formed routines indoors. With the convenience brought upon by a range of digital platforms such as TikTok (抖音), Hema Fresh (盒马鲜生) and Ele.me (饿了么), the home has become a place where we can work, learn, shop, exercise, socialize and entertain.

For example, many have found peace of mind in the kitchen and picked up home-cooking during the crisis. McCormick, a food company that manufactures spices and condiments, is seeing a double-digit YoY increase for its products in China, even after quarantine restrictions have been eased, indicating cooking at home is here to stay.

This means that traditional service providers will either have to outcompete the home experience or adapt to offer the digital equivalent substitutes for their services. In May, Apple launched an online shopping experience offering the same services available in its retail stores, including the virtual ‘Today at Apple at Home’ classes recorded by Apple’s Creative Pros. Across Asia and in China, many nightclubs have delivered on needs for social connection by launching dance parties on TikTok. Bars and clubs will need to ‘up’ their game and reclaim their spot as favorite destinations out of the home.

3. ‘New’ New Retail: A Reshuffled Game of Online and Offline Retail

The COVID-19 outbreak has forced consumers to become familiar with engaging online, even those who were previously slow to adopt a digital lifestyle. It is no wonder that the pandemic has upended the retail industry and compelled retailers, both large and small, to provide online shopping experiences that offer escapism and instant gratification.

“Online shopping has become social, personal and entertaining.”

Online shopping has become social, personal and entertaining. Appetite for live-streaming content on platforms such as RED (小红书) and BiliBili (哔哩哔哩) is growing, which puts more pressure on offline retailers to deliver a truly distinctive customer experience that online shopping journey cannot fulfill.

The food delivery industry has also found new and improved ways to provide its services to the mass. Across Asia, services such as KFC, McDonald’s and Meituan (美团) offer a completely contactless order journey and assure high safety and hygiene standards at the same time. Traditional retailers will have to rethink their experiences and the customer journey to deliver on the same guarantees.

4. Health is the New Wealth: A Renewed Focus on Self-care

With COVID-19 exposing the vulnerabilities of our food systems and prompting increased vigilance over personal hygiene practices, staying healthy will become a top priority for consumers. This not only means that products need to guarantee safety, but healthcare will also need to be accessible through digital means. The customer experience in healthcare will need to be on-demand, accessible at a distance and highly personalized.

Online medical consultations were already becoming ubiquitous in China, but the use of digital platforms is a defining characteristic of COVID-19. The Ping A Good Doctor (平安好医生) app saw a 10-fold increase over the coronavirus outbreak to reach 1.11 billion accumulative visits in January.

The insurance industry will also be transformed with rapid demand for better health coverage and life protection. While international players like AXA, AIA or MetLife will compete with enhanced services to capture the more affluent rising middle class, mutual-aid insurance platforms, such as Xiang Hu Bao (相护宝), are capturing the lower end of the market with a peer-to-peer business model (300M members as of April 2020).

5. Value Redefined: A Shrewder Consumer and Smarter Purchasing Decisions

With millions being affected financially as a result of unpaid leaves and extended furloughs, many will shift preference toward low-priced value propositions and will want to be financially savvy. Consumers who have the spending power will also reassess their definition of ‘premium,’ seeking more pragmatic, tangible superiority in the brands they choose and putting greater value on responsible buying.

Shopping festivals such as Valentines Day, Double 11, 618 will continue their hot streak as over 15 e-Commerce holidays are scheduled in 2020. But the journey doesn’t end after such “deal hunters”. Gen-Z and millennial shoppers are learning to offload used possessions and embracing a more sustainable attitude. Chinese social media saw the rise of #ditchyourstuff (断舍离), and the second-hand or flea market app, Idle Fish (闲鱼), has witnessed accelerated growth in recent years.

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FINAL THOUGHTS

The post-COVID-19 era provides an unprecedented opportunity for businesses to lead and transform, achieving uncommon growth in the face of disruption. While many businesses recognize their consumers are no longer the same, they are eager to learn where to start in order to seize the transformation opportunity.

By pulling different levers from consumer insights to brand marketing, experience design and digital transformation, businesses can formulate a strategic roadmap to respond, adapt and transform. Act now and win the day.

Stay tuned for the next part of the series, in which we will delve deeper into the major enablers that will fuel and accelerate digital transformation in this new normal.

Download the PDF report, or contact us to learn more about what levers you can pull to reimagine your business for uncommon growth in the post-COVID-19 era.

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Learning from the Leaders Behind the Johns Hopkins Capacity Command Center

Its work with GE Healthcare helped mix, filter and create real-time information from dozens of data streams.

When one thinks of innovation and healthcare business transformation, it’s often in association with young, West Coast start-ups founded in the 21st century.  Rarely is an organization that was founded prior to 2000 regarded as modern and innovative.  Not to mention one that was founded in the 1800s. That’s what makes the Johns Hopkins Capacity Command Center, designed and built with GE Healthcare Partners Group, so interesting. It’s a collaboration of two organizations, both over 125 years old, working together to create one of the most impactful healthcare innovations in recent years.  

In this article, we go beyond how the GE Command Center at Johns Hopkins works and get into how it all started. Let’s dive into how the leaders behind the GE Clinical Command Center at Johns Hopkins Medicine have driven business transformation in healthcare.  

Where It All Began 

Soon after the Johns Hopkins Capacity Command Center went live, the Economist cited that “the biggest upgrades to hospitals are needed behind the scenes”—and went on to describe it as “a NASA-inspired ‘command center’ to manage its patient flows. Surrounded by 22 beeping flat screens, live video streams and lots of phones, staff members wearing headsets orchestrate the 1,100-bed institution around the clock. 

 GE Healthcare, a medical-technology firm, helped mix, filter and create new real-time information from dozens of data streams— in addition to designing the operating mechanisms, processes and even the physical space of the new center.  Bed-planning has gone from an art to a science with the help of programs that predict demand with great precision and warn when a crunch is approaching. 

Given the maturity of GE Healthcare and Johns Hopkins Medicine, and their ability to continually innovate, they classify as a “Transformer archetype” within the Evolved Healthcare Enterprise model.   

Recently, I spoke with Jim Scheulen, Chief Administrative Officer, Emergency Medicine and Capacity Management, Johns Hopkins Medicine, and Jeff Terry, CEO GE Clinical Command Centers. Here are a few themes behind their partnership that made the Command Center possible. 

It’s About the People Before It’s About the Technology 

Jim and Jeff both agreed this initiative would not have gotten out of the gates if it wasn’t for the leadership from both sides. Jim highlights, “Johns Hopkins clinical and administrative leadership is very strong and forward-thinking, who see immense value in using sophisticated tools and analytics to run operations. It was never a question of ‘if,” but ‘when’.” Jeff added, “We were struck by the humility of Hopkins’ leaders, at every level.  That translated to efficient interactions, which is key to moving forward at pace.And on the GE side of the house, the GE Healthcare leadership team provided broad success criteria and a budget. From there we had a safe space to innovate within.” 

This is quite important to highlight, as many mature enterprises tend to be risk-averse and are slow to adopt the technology. It has little to do with the age of the organization, but the degree to which leadership takes a progressive view on running a modern enterprise. Second, we often see older enterprises holding onto an “operator approach,” micromanaging everyone’s activity instead of setting parameters and letting teams operate with autonomy, speed and agility. This is what makes a Transformer different than older enterprises that are “just hoping” to be more innovative but don’t follow through from a leadership or supporting operating model perspective.   

Breakthrough Innovation Begins in Increments 

According to Jim, “As a lot of these things start, the lightbulb didn’t just go off and we decided to build the command center. Roots started when we at Hopkins started to think that we should use simulation modeling, good data and statistical analytics for how we do our business. Running it in small bits at first.”  Jeff adds, “From the GE side, we had been working on patient flow, access and throughput for about ten years with steadily increasing analytic capabilities. GE had explored something like this for the city of Rio de Janeiro and when we shared that with Jim and the Hopkins’ team it seemed like a very natural evolution of what they were already doing in small bits.” This is a huge advantage to Transformers. They often have a variety of low(er) tech solutions in place, acting as proofs-of-concept and allowing for these large, healthcare business transformations to be evolutionary from a risk perspective. 

Patience and Speed Aren’t Opposing Forces 

Many large, mature healthcare enterprises get into an “operations and optimization” mindset, and whenever an innovation opportunity comes along, there can be a knee-jerk reaction to ask, “What’s the cost? What’s the ROI? How long will it take?”  Breakthrough innovation takes time and comes with a fair degree of uncertainty. Coincidentally, health companies are well versed in this, as most clinical products and services don’t come with quick ROIs. As Jim explains, “Johns Hopkins is comprised of financially smart people, not unfamiliar with long returns. We are a research organization and used to seeing returns take time; we had targets set and have hit our targets as planned since opening the command center.” GE Healthcare was equally prudent in making adjustments as they went, “We didn’t just jump in and constantly make changes,” Jeff added. “We focused on solving one problem at a time for caregivers, confident that this would eventually coalesce into an integrated software platform. And that’s exactly what has happened.”  

Above all, Jeff underscored the importance of a common purpose. 

“There is no doubt that at big companies there will be many agendas in play. The key to this effort was to stay focused on authentically helping caregivers, and almost ignore the rest.”

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FINAL THOUGHTS

Keeping the purpose at the core of a healthcare business transformation is important, as challenges and new insights will emerge along the way. As Jim points out to others that take on serious innovation opportunities, “It will be more than you think it is, and its an adventure, requiring a lot of adaptation along the way. Something of this scale was first-in-kind work. It was hard. And the talented, hard-working people behind it all are able to make it fun, and something we’ll never forget.”   

Jim and Jeff wanted to acknowledge some of their great colleagues who made this happen:

Ron Peterson, Judy Reitz, Mary Margarette Jacobs, Steve Mandell, Catherine Boyne, Alan Coltri, Jim Hainley, Damon Fisher, Bree Bush, Andy Day, Kathy Martin, Jim Livas, Manny Singh, Anne Cole, Ryan Treml, Ryan Mancl, Christine Peeters, Sreelatha Surendranathan, Pradeep Rai and Steve Verdi.

Ready to drive your business transformation forward? Learn more about Prophet’s services and feel free to get in touch today. 

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REPORT

Smart Places: The Digital Transformation of Location

Hear about what’s working, with insights from early adopters, device makers, industry groups and vendors.

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The growing adoption of Internet of Things (IoT) consumer electronics — such as smart thermostats and digital assistants — has paved the way for brands to use connected devices in their physical spaces too. The same sophisticated technology that powers “smart home” devices is slowly finding its way into stores, hospitals, and other public spaces, creating “smart places.”

For this report, we outline how location-based brands can take the battle offline by investing in technology-rich locations that raise the bar for Customer Experience (CX).

We also examine the barriers brands will face, balancing the value of enhanced consumer insights, customer experience, and operational efficiencies against heightened risks around consumer privacy.

Key Findings:

  • Detailed use cases distilled from research into hundreds of different ‘smart place’ devices
  • Interviews with early adopters, device makers, industry groups, and vendors who focus on CX management in physical locations
  • Recommendations for incorporating these technologies into your business strategy, and the challenges therein

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The State of IoT In the Home

As consumer interest in connected home devices grows, home security, health and safety get star billing.

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The “Internet of Things” (IoT) market for the home — in which disparate devices work together to create a “smart home” — is in its early days. Some connected devices have long been in use in municipal life, at work, and in our personal lives (e.g., smartphones and “wearables”). But while home security systems and smart utility meters have been around for years, the “digital transformation” of the home is still just getting off the ground.

Our research shows that while adoption for home IoT products is in the early stages — only 23% of consumers own at least one IoT home product, like a smart TV — purchase intent is very strong. We anticipate three waves of adoption over the next several years and, if consumer intent is realized, an average global growth of 265% (in units sold) in the next 12 months.

In this report, we answer questions that help brands position themselves for this market: Who is the smart home IoT product buyer? What does the next wave of buyer look like? What drives consumers to purchase, and what obstacles do they perceive? What products for the home do consumers want to be smarter and connected?

Key Findings

To form a clear picture of where the smart home IoT market is headed, we started by researching who’s buying connected products today, who is likely to buy in the next phase, and longer-term prospects. This is what we learned:

  • “Early Adopters” are frustrated by a lack of automation at home and view connected technology as the solution. They are young, skew male, and are less price-sensitive. Once aware of a new connected product, they are more likely to purchase it
  • “Fast Followers” are more concerned with the ease of use of home IoT products and expect them to learn their habits, becoming more useful over time. Although their incomes are on par with Early Adopters, they are much more price-sensitive, less brand conscious, believe connected products shouldn’t cost more, and less likely to value premium products
  • Although “Laggards’” awareness of IoT for the home in some product categories is on par with awareness of Early Adopters and Fast Followers, they are much less likely to convert to purchase. Having the latest technology products is less important to Laggards, who skew older and just slightly more female
  • The Chinese market for home IoT products is particularly promising, especially when it comes to ownership of connected devices and intent to purchase. Chinese consumers are the least price-sensitive of any region and focus more than consumers in any other region on health benefits when making purchasing decisions
  • Our research findings point to three waves of home IoT product adoption. We believe near-term adoption will focus on the Home Security and the Home Environment Control product categories, followed by the Home Entertainment and the Health & Fitness categories, and, lagging, the Bed, Bath & Kitchen and the Pet, Child & Elderly Care categories
  • Consumer priorities for health and safety — and for product attributes like relevance and value — are leading drivers for the next wave of adoption. Device aesthetics and prestige of ownership lag in priority. Again, significant cultural differences between China and Western cultures should be studied by brands that target both markets

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Setting Your Healthcare Business Up for Success

Drugs and devices are important. But holistic solutions bring brand, digital and patient experience in, too.

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How Can You Set Your Healthcare Business Up for Success?

The healthcare industry is continually changing, which makes succeeding hard, so how can your organisation or brands win? Fred Geyer, a Senior Partner at Prophet, shares the importance of bringing digital innovation, patient experience, and brand together in order to create better solutions and cost efficiencies. The relevance of the device or treatment is important, but it’s now about incorporating it effectively into the larger system and creating an experience, that will set winning brands apart.

Learn more about how you can succeed in the healthcare industry, by creating a winning brand.

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Three Ways Innovation Can Keep Your Brand Relentlessly Relevant

New ideas should explore ways to create more value for people, targeting loyal customers for fast learning.

On their mission to stay relentlessly relevant, the best brands are constantly scrutinizing their innovation goals, objectives, approach and track record. They are obsessed with what their competitors are doing and what their customers are yearning for. They know that without innovation, their organizations will not be able to grow and thrive.

While innovation may once have been the sole purview of R&D, the best companies pursue innovation through a much wider lens. They look for transformation everywhere—in new experiences, channels, value propositions, content and communications.

“Digital technology has rewritten many of the rules of innovation, enabling brands to get ideas from new sources in nonlinear ways.”

Where should we look for models of success? In Prophet’s Brand Relevance Index®, we see brands like PlayStation, WeChat and Apple rise to top as examples of brands that aren’t resting on their laurels. They push the status quo, engage with customers in new and creative ways and find new ways to address unmet needs.

To drive innovation and transformational change, companies must embrace three important traits:

  1. Pursue a higher calling.

Many companies are boxed in by constraints of their own making—stubborn ideas about who they are and how they should compete, based solely on what they’ve done in the past. That rigidity crushes breakthrough innovation before it can even be considered. But when leaders understand the why of their businesses—their higher purpose—new ideas surface and push aside old assumptions.

Evernote, for example, is continually improving the way it organizes people’s personal and professional lives by synching information across devices. (Showcased in the total revamp of its version 8.0 which cleaned up the app by making it faster and simpler to use.)

Even established brands, such as Walt Disney, can deliver exceptional results when it stays true to their higher purpose. Witness Walt Disney’s sweeping My Magic+ digital upgrade to its parks, which is pumping up customer satisfaction by creating a happier, more memorable experience for its guests.

These companies don’t innovate just for innovation’s sake. Instead, they ensure every potential initiative will create value for customers. They make smart decisions based on their companies’ higher purpose, and by doing so they achieve relentless relevance for their brands.

  1. Stake the future on the unknown.

Innovation requires opening the aperture, taking a broader, deeper and potentially longer view of your customers’ underlying wants and needs, even the ones they can’t articulate yet. And while history and past performance should influence an organization’s decisions, free-thinking companies don’t allow that legacy to squash new ideas. They step beyond their past, finding new ways to interact in the marketplace.

In some respects, it’s easier for newer companies to do this. A company such as Birchbox can be nimbler than, let’s say, 3M. But that doesn’t matter when a company’s leadership commits to empowering a more innovative culture. Beginning in the 1950s, 3M urged its employees to spend 15% of work hours pursuing their own ideas, many of which became viable new businesses. This strategy has inspired many tech companies, including Apple’s BlueSky and LinkedIn’s InCubator. Because these companies push employees to think outside of the traditional framework of their roles, they’re more open to new ideas.

Additionally, digital technology has rewritten many of the rules of innovation, enabling brands to get ideas from new sources in nonlinear ways. Companies such as GE pioneered open innovation, and open development has become the norm for Silicon Valley.

As companies embrace ideas from external sources, they are shaking up internal structures in response, as well. Often, that involves expanding the reach of the marketing team. But, as a 2014 U.K. study found, a solid majority of marketers (77%) believe their innovation was blocked by a risk-averse culture. This may be a current organizational reality, but since marketers are often closest to customers’ pain points as well as competitors’ moves, they must increasingly make the effort to break down silos and propel their organizations to progress.

  1. Apply lessons quickly, confidently and continuously.

Only the most innovative companies—and, yes, those with the most digital dexterity—have truly mastered a test-and-learn approach. As an innovation speeds through iterative cycles, the company gathers valuable input at every stage.

This fast learning usually comes from the company’s most loyal customers. Video-game makers preview new titles with the toughest reviewers. Fashion brands offer influential bloggers sneak peeks of new collections. And craft beer makers organize “insider” tastings.

That feedback creates a virtuous cycle, providing an unparalleled level of confidence. The conviction of knowing what customers want at a deeper level makes these companies more agile.

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