New technologies, such as AI and big data, have been touted to impact pretty much every process undertaken at work, so it’s perhaps no surprise that innovation should be among them.  A recent report from Arthur D. Little explores just what impact new technologies might have.

The survey found that leaders are confident in the ability of new technologies to supercharge innovation, with the data revealing an average 1.7x increase in innovation performance expected as a result of new digital tools.  With such gains expected, it’s perhaps no surprise that some 95% of executives plan to digitalize their entire innovation engine.

The authors then go on to suggest that progress along these lines is split evenly between four categories of company:

• Digital natives, for whom digital is part of their DNA and where digital technologies are established in innovation.
• Pioneers, for whom digital technologies are seen asa real opportunity and where these technologies are already in use in select ways.
• Traditionalists, for whom digital has made precious little impact thus far, but where the technology is nonetheless being piloted.
• Aspirants, for whom there is no real vision for how to use digital technology, and none is really being used thus far.

Not only are companies at different stages of their journey, the authors believe that the potential gains are not distributed evenly either.  For instance, a skills shortage in digital technologies was widely cited as a barrier to progression, which in turn fed into a lack of basic capabilities.  These problems were especially strong in traditional industries, such as manufacturing, engineering and food and beverages.

“All organizations understand that digital technology will transform innovation and deliver enormous benefits. However, our report shows that these benefits will be unevenly distributed, with many organizations struggling to overcome barriers that are holding them back. Now is the time for this group to begin their digital journey in order to successfully prepare for the future,” ADL say.

It perhaps goes without saying, but there isn’t really a desired end state with any kind of digital transformation, and ADL concur that this is not the case with the digitization of innovation either. Rather, it’s a new mindset, and a new approach to how you do your work that takes advantage of the new capabilities digital technology offers.

Nonetheless, the report concludes with a three-pronged strategy for digital transformation in innovation, which includes designing solutions for broad user adoption of digital innovation, running controlled pilot programs for cutting edge technology and monitoring and experimenting with potentially disruptive applications.