by Sarah Nicastro, Creator, Future of Field Service

In an era where innovation is consistently ranked as a top three priority by corporate leaders, would you be shocked to hear that 80-90% of innovation centers fail? As last week’s podcast guest, innovation expert Amer Iqbal, pointed out, this devastating success rate would be unthinkable in any other business function. “Imagine telling your sales team that a 10% success rate was acceptable – you'd be laughed out of the room,” he says – and he’s not wrong.

Amer founded 5 Ways to Innovate after earning some serious experience in roles such as Head of Digital Transformation for APAC at Meta and Director of Digital Strategy & Innovation at Deloitte Digital. In studying why companies with massive innovation ambitions consistently struggle to execute, Amer’s research, spanning 100 companies, reveals a fundamental truth: the gap between innovation ambition and execution isn't about ideas or investment – it's about systematic approach.

When it comes to one of the biggest missteps that large organizations make with innovation, it is to try to act like a startup. "I think when large companies try to be a startup, they're selling themselves short because large incumbent corporates have so many advantages that startups don't,” says Amer. “They're not scrapping for VC money, they have revenue models, they have strategic modes. They have partnerships, they have all of these capabilities in place that startups can't possibly compete with."

Amer suggests using "speedboat" initiatives like startup studios to explore new opportunities while the core "battleship" business maintains stability. Leaders can fund small, agile teams to test innovative approaches without disrupting established operations. This balanced approach allows organizations to benefit from startup-style innovation while maintaining their strategic advantages in scale, resources and established customer relationships.

Another issue contributing to the innovation execution gap is related to breadth. “Organizations put all their eggs in one basket instead of treating innovation as a portfolio,” explains Amer. “Innovation is not a project, it's a portfolio.” Depth also presents challenges, Amer points out, because often innovation success is measured by inputs (training programs completed, POCs launched) rather than outputs (actual business impact).

5 Approaches to Innovation

The research Amer has done has revealed that successful innovators use five common approaches to innovation. While it isn’t necessary to use all five approaches, the best success is achieved when a business is consistently implementing at least three of five fundamental approaches.

1. Upskilling with Purpose. Rather than generic innovation training, successful companies create structured programs aligned with specific business objectives. This isn't about checking boxes – it's about building practical capabilities that drive results.
2. Innovation Hubs That Actually Work. The key difference between successful innovation hubs and the 90% that fail? Integration with core business objectives and clear metrics for success. They're not innovation theaters – they're profit centers.
3. Startup Studios: The Internal Venture Builder. Think of this as "entrepreneurship as a service" within your organization. Amer shared how one bank successfully launched six simultaneous internal startups, each with blended teams of internal talent and external experts.
4. Strategic Incubators. Unlike internal startup studios, strategic incubators focus on external startups with minimal corporate interference. The goal? Let innovators innovate, then invest in what works.
5. Ecosystem Plays. This passive but powerful approach involves systematically scanning the startup ecosystem for partnership opportunities. It's about being a smart investor rather than trying to build everything in-house.

In addition to incorporating three of the five innovation approaches, Amer suggests companies consider the right mix of invested vs. divested approaches, emphasize the importance of clear metrics focused on outcomes vs. inputs, and moving beyond the familiar efficiency-only thinking.

Keep Innovation Customer-Centric

Amer and I also discussed the importance of outside-in innovation and some of the shortcomings that occur in companies with even the best of intentions around customer-centricity. “Too many businesses are still running their planning process inside-out,” he says. “This is what the business processes need to be, this is what the regulations are, this is what our business model is. And then right at the final point when it's time to launch a product, launch an app, or whatever it may be, that's when we go do some customer research."*

True customer-centric innovation requires integrating customer needs into products, business models, and user experience - not just the final interface. And companies must move beyond traditional customer feedback to understand unexpressed needs through observation and data analytics. "There's in-context inquiry where you're shadowing customers, you're observing, you're collecting data through digital platforms,” Amer says. “There are so many ways of understanding those latent customer needs that a customer may not express and sometimes may not even know themselves. That's how great companies actually do customer research."

As traditional industries face disruption from digital natives and AI-powered competitors, the ability to innovate systematically has become a make-or-break capability. If you’d like to hear more of Amer’s advice, you can listen to the full podcast conversation.