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26 March 2026 | 5 minute read
InsightsInnovation has become a cornerstone for many organisations’ strategies. This is particularly evident in corporations navigating significant transitions, such as the transition of an entire country to a new energy mix, or, in the case of the Netherlands, the shift to a complete new pension system. However, in order to unlock the full potential of innovation as a strategic lever in these periods of transition, we need to understand how to actually make innovation happen.
Research on the execution side of innovation has shown that the real innovation challenge goes beyond the idea. It lies in a long, arduous journey – from imagination to impact. If you lead an innovation initiative, you must address the fundamental incompatibilities between ongoing operations and innovation by thinking differently about how you organise and how you plan.
While research indicates the importance of the execution side of innovation, it is rather silent on how to make innovation work in a highly regulated landscape amidst transition.
To find out how innovation can be a strategic lever in this context, we (a European Digital Transformation firm) conducted a consultancy project with a leading pension provider (let’s call them “The Firm” to assure anonymity) that is familiar with running innovation activities in a highly regulated landscape. Below are some of our findings and practical examples from the field.
Myth: Innovation is all about ideas. Truth: Ideas are only beginnings.
Innovation as an accelerator in the transition to a completely new pension system
Focused on improving digital customer services and the customer experience, the transition to a new pension system is a historical step for the Dutch pension sector. All parties are depending on innovation to be the accelerator and enabler in this process. The question however is: how can they innovate to truly make an impact on customer services, marketing and communication, while staying aligned with clear regulatory requirements? The Firm turned to us to help ensure that their innovation budget is allocated as effectively as possible to meet this goal.
Our mission was clear: we needed to develop and design a working method based on existing processes that helps the Firm move effectively from innovation to realisation.
For this project, we followed a so-called consultancy design approach, e.g. a four-step methodological approach: 1) analyse the problem 2) design the solution 3) plan and 4) implement the solution, and started with an in-depth analysis that included over 15 qualitative interviews with several department representatives from across the Firm (including strategic innovation and ventures, product & channel management, client experience and business improvement and change departments).
The analysis showed a general perception that innovation can and should contribute to fulfilling the strategic pillars of the Firm. There is a belief that innovation can serve as an accelerator in the transition to the new system in the short term and also play an important role after the transition. While there are quite a few things that go well in the existing innovation process (e.g. high-quality experiments, experiments in line with the strategy and innovation vision), the analysis concluded that there are several opportunities for improvement to move from innovation to execution more effectively.
Innovation is the ability to see change as an opportunity–not a threat.
Steve Jobs
4 reasons why innovations are difficult to realise:
- While roles within the innovation funnel are generally well-defined, the role of the true sponsor, the business owner, remains ambiguous. As the ultimate stakeholder in the innovation’s success, the business owner’s role and ownership should be clearly defined.
- The firm’s innovation calendar lacks clear alignment with concrete pension fund goals and strategy. Additionally, departmental business goals need to be integrated to ensure a smooth transition from innovation to execution.
- A critical GAP hinders the transition from innovation to realization. While the innovation funnel delivers validated prototypes, the subsequent change process, requiring Proof of Concept (POC) and Minimum Viable Product (MVP) integration, operates in a different reality. This disconnect, bridging the GAP between a “fake demo” and a functional solution within the existing architecture, is another obstacle to effective execution.
- Outside the innovation hub, there is little awareness of how innovation experiments get prioritised. For example, there is no holistic check for desirability (e.g. a need that both users, pension funds and the Firm have to use a new product or service ). Additionally, the Change departments and their owners do not have a good idea of how this prioritisation is done.
Myth: Everyone can be an innovator.
Truth: Ideation is everyone’s job, as are small improvements in each employee’s direct sphere of responsibility.
Three potential solutions to move from innovation to execution more effectively
Once we uncovered the barriers in the innovation process, the next step was to define potential solutions. Based on the insights listed above, a total of nine solutions were defined to successfully make innovation happen. These solutions resulted in a strengthened working method with three key areas for improvement to achieve the greatest impact:
- Sponsorship and responsibilities in order: begin by looking for a sponsor (owner) with a clear mandate and act of ownership at an early stage of the innovation funnel and work together from start to execution to increase the chance of realization.
- Prioritize experiments in line with department objectives and fund wishes: increase the chance of innovation realization by aligning innovation experiments to business objectives from pension funds (e.g. funds strategy) and the department objectives and ambitions.
- Collaboration and coordination with the change and Devops teams: To bridge the GAP between innovation and realization, close collaboration with change and DevOps teams is essential. By clearly understanding the “GAP” (the transition from innovation to implementation), both innovation and change/Devops teams can work together to determine the requirements for the successful execution of prioritised experiments. A key factor is financing change capacity with innovation funds, enabling fade-in/fade-out and dedicated resources.
Operating in strictly regulated markets demands additional attention. Beyond the typical assessments in the innovation phase, the “GAP” necessitates a thorough evaluation of legal, compliance, and risk aspects. While an experiment validates an idea, a POC/MVP must meet all internal and external requirements and policies.
From innovation to impact: the path to successful execution
Innovation is an ongoing process. After establishing your working method, put it to the test. Execute experiments, learn from them, and adapt your approach as needed. A structured assessment of your innovation funnel can further refine your process.
We evaluated our experiments against multiple criteria, focusing on three key solution directions. This identified areas for improvement, such as delays in securing sponsors. By addressing these bottlenecks through early discussions, we can strengthen our innovation engine and transform ideas into tangible results.
As mentioned in the beginning, when you lead an innovation initiative, you must address the fundamental incompatibilities between ongoing operations and innovation by thinking differently about how you organise and how you plan. Research, however, as well as our findings also show that to innovate successfully, you must build a team with a custom organisational model and craft a plan that is only revised through a rigorous learning process (e.g. run a disciplined experiment). If you do both, you will fare much better. And if you succeed, you will move on and move up.
Myth: Innovation can only happen in skunkworks.
Truth: Innovation cannot be isolated from ongoing operations. There must be engagement between the two.
Execution requires courage, realisation demands endurance
In conclusion, it is evident that highly regulated companies facing significant challenges, such as those in the pension sector, must embrace innovation as a critical lever to achieve their strategic objectives. The traditional approaches are no longer sustainable in the face of evolving regulatory landscapes and complex change. By adopting innovative strategies tailored to their specific context and challenges, these companies can effectively navigate transitions and realise their goals.
It is essential to recognise that successful innovation requires more than just clear sponsorship and defined responsibilities; it necessitates thorough research and a customized approach that aligns with the company’s unique circumstances. If approached this way, innovation serves as a powerful accelerator for driving strategic success, positioning these companies for resilience and growth in dynamic regulatory environments.
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is an innovation expert with a proven track record as a senior manager in digital innovation and business design. She has extensive experience working with clients and innovation hubs at European digital transformation firm IG&H. Jolanda’s motto is "Make innovation work with action and acceleration – because innovation is nothing without implementation." Her expertise lies in providing innovation consulting, developing innovation vision and strategy, setting up market research and experiments, establishing methodologies to bring innovation to life.
Jolanda designs and facilitates innovation workshops and training for business professionals in corporate settings and scholars for Business Schools through her company, Innovation Smile. She is an alumna of ESCP Business School and holds an Executive Master in Digital Innovation & Entrepreneurial Leadership.
