Innovation Flywheel

Get the Flywheel Spinning | Have you heard of the flywheel effect? It's the idea that small efforts and decisions accumulate and create a self-reinforcing loop of success.

Picture a heavy flywheel - a massive metal disk mounted horizontally on an axle (like a Peloton bike wheel). At first, pushing takes a lot of effort, but with constant pressure, it starts to move. Once set in motion, it spins with very little additional input.
 
Use the same concept when building an innovation or AI practice. Here is the roadmap to get your innovation flywheel spinning:
 
• Identify key flywheel drivers: The first step is to identify the key drivers of your flywheel. These are the things that, when improved, will have the biggest impact on your business. For example, if you're a retailer, your key flywheel drivers might be product selection, pricing, and customer service. Evaluate your data assets to evaluate readiness to impact those areas.

• Make small, incremental improvements: Once you've identified your key flywheel drivers, start making small, incremental improvements. These improvements should be based on data and insights from your customers. For example, if you're a retailer, you might start by forecasting demand for new products or using predictive modeling to optimize pricing.

• Create a virtuous cycle: As you make small, incremental improvements and MVPs, you’ll create a virtuous cycle. This means that each improvement will lead to another improvement, and so on. For example, if you add the right new products to your selection, you'll attract more customers. These new customers will provide you with feedback/data that you can use to make even more improvements to your product selection.

• Measure your progress: It's important to measure your progress as you implement each model or capability. A live dashboard of your leading and lagging metrics will help you to track the benefits your program has delivered (building your value story for new investment). Knowing your numbers will also help you spot the next action in the value chain to further accelerate returns. You can measure your progress by tracking things like customer satisfaction, margin, and model performance.

Each push (action) on its own might seem insignificant, but the cumulative effect is massive and self-perpetuating. Like riding a Peloton bike, the more energy you put into spinning the wheel, the more momentum you build, and the easier it becomes to maintain speed.
 
By consistently applying these actions, businesses can keep their innovation flywheel spinning, generating momentum and driving sustainable growth. So, get on that bike and start spinning your innovation flywheel!