The analog vs digital innovation consultant

análogo vs el digital — consultor de innovación

The Role of Software Development in Innovation Consulting is a pressing demand from clients interested in innovating, yet many ignore this need. Why?

I want your help to create a digital product, I love that you help me conceptualize it, but you fall short when it comes to executing it. Anonymous

The harsh reality of the expectations and needs of innovators in almost all industries is systematically ignored. For innovation consulting firms, this means they must update their skills to remain relevant. We all know Michael Porter's theory on how to achieve "first mover advantage" or how to gain competitive sustainable advantage. Innovation firms that do not adopt the ability to create software and physical prototypes will lose competitiveness. In this article, we explore why innovation consultants must learn to develop software and why those who succeed in doing so are at the forefront of their field.

The Analog Innovation Consultant

The analog innovation consultant primarily bases their capabilities on traditional methods of data collection and analysis, such as personal interviews, focus groups, and paper surveys. This approach often involves direct, physical contact with clients, allowing for a more intuitive and emotional understanding of their needs and desires. However, this method can be limited in terms of reach and speed of data collection. The reliance on physical tools and manual processes can make data collection and analysis slower and less efficient, which in turn can delay the implementation of new ideas and solutions (Nature) (TechRadar).

The Innovation Consultant 2.0: Digital Skills

The digital innovation consultant has the ability to quickly transform prototypes into reality through software development. This skill allows them to be truly useful to a person or company looking to "create." From mobile applications to complex management systems, the ability to develop software not only solves specific problems but also turns innovation into a reality. (MIT Technology Review) (TechRadar).

The digital consultant uses advanced tools and technologies to collect and analyze data in real-time. Big data analytics platforms, artificial intelligence, and machine learning enable a deeper and more accurate understanding of customer behaviors and preferences. This approach accelerates the data collection process and facilitates rapid prototyping and continuous iteration based on real-time feedback. (MIT Technology Review) (Mack Institute for Innovation Management).

Why Innovation Consultants Need to Acquire the Skill of Software Development?

Holistic Solutions: Consultants who can develop software are better equipped to solve practical problems for clients looking to innovate, providing solutions that cover the entire journey from project modeling and design to implementation.
Rapid Prototyping: The ability to quickly develop and test prototypes is invaluable. Consultants who master software development can iterate solutions faster, adapt to market changes, and validate ideas with real-time data.
Greater Value for the Client: By integrating software development into their skill set, consultants can deliver functional and tangible products instead of just theoretical advice. This hands-on approach increases value for the client and fosters stronger, more lasting relationships.
Data-Driven Insights: Software development skills enable consultants to leverage data analytics. By developing tools and platforms, they can collect and analyze data to provide deeper insights and better-founded recommendations.
Competitive Advantage: In a highly competitive consulting market, having software development skills sets consultants apart from their peers. It demonstrates a proactive approach and a commitment to staying relevant in a tech-driven world.

Is innovation inherently a game of chance? No, if you understand why customers make the decisions they make.

Companies have never known so much about their customers, yet their processes toward innovation remain unpredictable. Why?

At Pivvot, we interviewed 30 companies from the innovation ecosystem and identified that around 50% of digital projects never get off the ground.

The big problem lies in the inability to control the innovation process, not just in theory but also in implementation. Organizations often accumulate large amounts of data about their customers and try to create winning business models, even testing prototypes, but they fail to transform that information into effective implementations.

The Challenge of Implementation

1. From Theory to Practice: Theory can provide a valuable framework for innovation, but without effective implementation, those concepts do not translate into tangible results. Companies must be able to apply their knowledge in real-world environments to test and adjust their innovations (Nature) (Mack Institute for Innovation Management).

2. Lack of Focus on "Doing": Data collection and analysis are crucial, but true understanding of customers and validation of new ideas occur in interactions. This means that companies must place greater emphasis on developing proof of concepts and pilot launches to quickly iterate on their ideas (TechRadar).

3. Connection with the Customer: Understanding the "Jobs to Be Done" of customers is essential for effective innovation. This approach focuses on the tasks customers are trying to complete, allowing companies to develop solutions that better align with the real needs and desires of users (Nature). But an analog innovation consultant does not understand.

The digital innovation consultant vs the classic software developer.

The classic software developer primarily focuses on the creation and maintenance of software. Their skills are rooted in programming languages, system design, and development methodologies such as Agile and Scrum. Classic developers are experts in writing efficient code and creating robust and functional applications, but their approach tends to be more technical and less oriented toward business strategy (Nature) (TechRadar).

Although classic software developers are crucial for the technical implementation of projects, they may lack the strategic and business-focused approach that characterizes digital innovation consultants. Their work is focused on meeting the technical requirements specified by other departments, and while they may participate in the design phase, they do not always have the same influence on defining business models and value propositions. (MIT Technology Review) (Mack Institute for Innovation Management).

The shortcoming of classic software development companies and the reason why 50% of projects are not implemented correctly.

Classic software development companies often lack the trained personnel to create value propositions or innovative business models. They predominantly focus on the technical skill of writing code and building applications, which can limit their ability to develop solutions that truly meet market needs and generate sustainable value. This gap is due to several factors:

Exclusive Technical Focus: Software developers often focus on solving technical problems and optimizing software performance, neglecting crucial aspects such as market strategy, customer experience, and the creation of innovative business models. (MIT Technology Review).
Lack of Business Training: The education and training of software developers generally focus on technical skills. The lack of training in areas such as marketing, product management, and business development can limit their ability to contribute to value creation in a holistic way. (Nature).

The Future of Digitalized Innovation Consulting

As technology continues to transform industries, the role of innovation consultants will also evolve. Those who master software development will not only adapt to these changes but lead them. By integrating these skills, consultants can offer more impactful, efficient solutions that are tailored to the needs of the future.

In 2024, Pivvot Consulting is launching its business unit for custom software development, combining great skills in modeling and prototyping with custom software creation. If you want to start creating your project, learn more here.

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