Beyond staying on top of the latest development tools, trends and techniques, many digital brands are wondering how technologies like blockchain, chatbots, artificial intelligence (AI), machine learning (ML) and whatever else is on the horizon might work (or not work) with their business strategies. Finding this out takes up valuable resources -- time, money and people -- so fully committing to blockchain, AI and so on can be costly if ROI is not proven. So, how are organizations testing out emerging technologies while keeping their core business functioning? Innovation labs. (Full disclosure: My company offers one, but there are many others available.) However, the concept and functionality of innovation labs are shifting. Let’s take a look at some traditional views and definitions of an innovation lab, how modern labs are evolving and how to choose the best one for your needs.
Traditional Innovation Labs
Innovation labs (also referred to as centers or studios) have been around for at least 30 years; Microsoft Research was one of the first I saw pop up in 1991. (Full disclosure: Microsoft is a former Exadel client.) Today, many of the top brands in the world run their innovation labs in-house, while others exist in an off-premise environment where organizations may come to work and utilize the lab's resources. However, while some of the most well-funded organizations have seen success with innovation labs (Walmart Labs and Google X stand out to me), they have taken their fair share of criticism as well. Why might this be? Some traditional labs or centers are:
• Misaligned with the business's objectives: Either an arm of an organization is building and testing applications tangentially to the overall business goals and strategy, or the arm is a separate entity entirely that can easily be misaligned with the company vision.
• Time-consuming: Organizations don’t always have time to spend months or years determining if certain emerging technologies are right for them. Some innovation labs aren’t optimized to run in an Agile manner, which is critical for app development speed and quality.
• Difficult to access: Many innovation labs are physical centers or buildings where either a team within an organization or a client of an innovation lab must go, which isn't a fit for all businesses.
• Not Agile: Agile delivery practices are key to the success of many software development ventures, and software is at the heart of most emerging technologies. Quick release cycles and constant, iterative feedback loops are fundamental tenets of Agile, but can be challenging to facilitate in a traditional innovation lab environment.
For the past several decades, innovation labs have tried to solve the problem of building the next big thing in technology while sustaining their bottom line. While many have been, and are, successful, it's important to determine the right type of lab for your business's needs.
Choosing The Right Innovation Lab
With hot new technologies popping up almost daily, organizations need to be able to keep up with the pace of innovation. However, not every company has the resources available to innovate and maintain the status quo of day-to-day success at the same time. Here are a few things to keep in mind when searching for the right innovation lab:
• Ask questions: There are plenty of innovation labs to choose from, and as you engage with them throughout the selection process, make sure you're asking the right questions. Is the lab on-premise, virtual or a blend of both? Which technologies does the lab support or offer? Are experts or consultants on hand to support development? What is the average completion time for projects? Bottom line: Make sure you choose a lab that fits your needs, budget and strategy.
• Consider price: Just as there is a range of innovation labs to choose from, you will likely encounter many different pricing models. While budget plays a big role in determining which lab you go with, be aware that oftentimes cost and quality are directly correlated. While you don’t want to hurt your bottom line by engaging with an innovation lab, make sure you find one that has flexible, transparent pricing that fits your budget.
• On-premise versus virtual labs: Innovation labs may be on-premise -- a physical lab that you and your team visit -- or they may be entirely virtual. Of course, there are benefits to the on-prem experience, which facilitates true hands-on learning and building experience. But the on-prem lab can require more bandwidth because users need to account for travel time and being away from the office while they're using the lab. With the virtual experience, you get the flexibility to access the lab at your convenience but may lose out on some of the real-time collaboration of an on-prem lab. The choice is ultimately yours, and some labs might even have a hybrid option.
• Specialized versus general expertise: Consider the breadth of technologies that an innovation lab supports during your search. You may be looking to test blockchain now, but consider that your strategy and direction might change as you begin to build and test. While a lab that specializes in a specific technology might offer the deepest expertise in that field, a lab that has several options can be helpful in case plans change and you need to test a different technology.
Start creating the technology of the future today by engaging with the right lab for your needs. The digital revolution has been evolving and growing with no signs of slowing down. In order to keep up, organizations must continue to utilize cutting-edge technology to find newer and better ways to deliver software and disrupt industries. Now, just as organizations have adapted to the use of new technologies, innovation labs should continue to improve in order to keep up with the pace of software development and delivery -- the backbone of innovation.
