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Businesses must pick suitable ventures to go after and explore new ways of working

Companies must first establish clear innovation strategies and priorities to tackle challenges

The accelerating pace of digitisation and the emergence of sustainable ecosystems of value have been playing a significant role in transformation of business landscape as well as broader economic and societal environment worldwide and corporate sector has no choice but to get ready for future challenges, says a senior official.

Gagandeep Gadri, managing director of frog, said the future is capital-constrained and resource-constrained and businesses should find new ways to tackle challenges and survive in competitive environment.

“Today’s businesses must embrace partnerships with startups and innovators to solve complex problems, accelerate growth, and scale new technologies,” Gadri told BTR during an interview.

Frog, part of Capgemini Invent, is the reinvention and experience partner for the eco-digital era. It brings diverse skillsets to unleash growth, build superior experiences and create lasting impact at scale — fusing art and science to realise the future.

Excerpts from the interview:

What specific strategies do you recommend for businesses looking to transition to eco-digital models in the current economic climate?

The eco-digital era is here, and we must recognise the significant shift reshaping not only the business landscape but also the broader economic and societal environments we operate in. Two powerful forces are driving this transformation: the accelerating pace of digitisation and the emergence of sustainable ecosystems of value.

In the next three years, nearly a quarter of the global economy will be leveraging these forces to conduct business, with the eco-digital economy expected to double in size over the next five years, with a compound aggregate growth rate (CAGR) of 15 per cent.

It’s about fusing the business of today with that of tomorrow, ensuring a smooth transition. At frog, our focus is to leverage today's business as a bridge to the future. This involves reviewing current portfolio strategies, boosting productivity, enhancing customer relevance, and using the efficiencies created by Generative AI and technology to carve out the economic space necessary for building tomorrow by exploring future value propositions for clients.

The future is capital-constrained and resource-constrained. We help businesses pick suitable ventures to go after and explore new ways of working by placing bets on likely futures in a systematic manner – and building native businesses on the back of new technologies.

How can companies effectively balance immediate profit goals with the need for long-term innovation and sustainability?

The key lies in striking a balance between driving today’s business with a focus on profitability, margin, and market share, while also preparing for the future. As a reinvention and experience partner, frog aids clients with the transition from today to tomorrow.

For today, we empower clients to pivot their existing customer portfolio, across their products, services, channels by imagining new experience strategies, new purpose, and new value propositions, and tomorrow, the clients can build something new for customers, by scaling these opportunities and being bolder in their innovation strategy, more creative in addressing new opportunities, and more effective in moving from idea to launch.

What role does Generative AI play in reshaping value propositions, and how can businesses best harness this technology?

Generative AI is poised to revolutionise value propositions by reshaping how businesses operate, compete, and deliver value. This technology enables entirely new ways of engaging customers, optimising operations, and driving innovation. By leveraging Generative AI, businesses can enhance their existing models, unlocking incremental sales, boosting profitability, and optimising processes across the value chain.

Businesses today need to define their value proposition considering this disruption; to land a future that is both in sync with this reordering and planet positive. The productivity enhancements that these changes create can unlock the investment to bridge from today’s business into tomorrows.

Can you share an example of successful Continuous Business Reinvention initiatives from your clients that highlight key learnings?

We have partnered with several iconic brands to drive business reinvention, and one standout project has been our collaboration with IKEA. We partnered with IKEA to enhance their membership programme, aiming to deepen customer engagement through rewards and leverage their expertise in home furnishings. Our research revealed a key opportunity: supporting customers in their ongoing home transformations.

We introduced the Reward Keys from the IKEA Family programme, encouraging customers to realise their furnishing dreams. Following its 2022 launch, IKEA Italy and Portugal saw an 11 per cent increase in active members and an eight per cent sales boost linked to the programme. By fiscal year 2023, IKEA Portugal achieved an impressive +37x return on investment (RoI) from this initiative.

What are the most common challenges businesses face when attempting to reinvent their value chains, and how can they overcome them?

The challenges of digital transformation span organisational, people-related, and technical aspects. Organisations often struggle to align their structures with digital initiatives, facing budget increases or management inertia.

On the people side, there’s a need for both future-ready skillsets, and the right mindset to drive adaptability and continuous learning. Technically, the shift from siloed operations to collaborative, tech-enabled ecosystems is essential.

Today’s businesses must embrace partnerships with startups and innovators to solve complex problems, accelerate growth, and scale new technologies. Collaborations between legacy brands and AI startups aren’t just about tech but about merging today’s business with tomorrow’s vision for sustainable, tech-driven growth.

How do you see customer expectations evolving in the eco-digital era, and what strategies should companies implement to meet these expectations?

In the eco-digital era, customer expectations are rapidly evolving, driven by two key factors, speed and agility. With technology advancing at an unprecedented pace, consumers now demand instant, frictionless, personalised experiences. For example, if they like an outfit in an ad, they expect to scan and purchase it within moments. Brands must respond with agility and seamless digital touchpoints to keep up.

Simultaneously, value-based purchasing is gaining momentum. Customers increasingly care about the origin and sustainability of their products. Eco-friendly packaging, circular fashion, and ethical sourcing are no longer trends—they're expectations. Businesses can now mine real-time data for customer insights and to adapt products and services. Companies that listen closely to this shift and innovate accordingly will lead in this future-focused market.

What metrics should businesses track to measure the success of their reinvention efforts?

To measure the success of our reinvention efforts, we focus on both renewing existing business and building new ventures for the era of change we foresee. For renewal, we prioritise topline sales growth and reducing cost-to-serve, complemented by specific metrics like revenue per user (RPU), customer satisfaction, and net promoter score (NPS) to gauge the effectiveness of our strategies. When building for the future, our primary focus shifts to value creation, measured by increased market capitalisation driven by our new products and services. Proxy metrics, such as the growth velocity of these ventures, help track this progress.

How can companies foster a culture of innovation among their teams to ensure ongoing adaptability and growth?

To foster a culture of innovation that ensures ongoing adaptability and growth, companies must first establish clear innovation strategies and priorities. Without clarity, teams may experience paralysis and waste valuable time and resources on misaligned goals. Once priorities are set, it's crucial to have a robust platform for innovation, which includes structured processes, enablers, and tools that guide teams in pursuing these goals efficiently.

Alongside these foundational elements, creating a culture that encourages innovation is key. This involves fostering an environment that supports proportionate risk-taking, maintains a strong focus on customer and category obsession, and consistently celebrates team wins. When teams are clear on where to focus their efforts, are provided with the right tools, and operate in a supportive culture, they are more likely to thrive and drive meaningful innovation that fuels company growth.

— anam@khaleejtimes.com