DIGITAL TRANSFORMATION
nnovation has become a bit of a buzz word of late, and with good reason. According to a study by Boston Consulting Group( BCG), 83 % of senior executives now rank innovation as a top-three strategic priority for their organisations, a significant increase from previous years. However, this elevated priority coincides with a sharp drop in what it calls‘ innovation readiness’, with just 3 % of organisations deemed prepared to act on these ambitions. On top of this, McKinsey reports that 84 % of CEOs believe innovation is critical to growth, despite 80 % of business models being at risk. It also finds that just 6 % of CEOs are satisfied with their innovation performance.
So, how is this shift being tackled? The primary corporate response to this challenge has been the innovation lab – a purpose-built environment designed to foster creativity, experimentation and rapid development, intentionally ringfenced from the constraints of daily operations. These labs enable the development of groundbreaking solutions, from new products and services to entirely new business models, allowing companies to anticipate future trends and maintain a competitive edge.
The makeup of the specialised environment used to foster this innovation varies and can be a physical space equipped with advanced technology or even a virtual platform that connects
diverse teams across locations. Innovation labs operate with a somewhat startup-like mindset, focused on rapid ideation, prototyping and testing, allowing teams to explore potential innovations in a risk-free environment.
As a space that allows businesses to safely challenge the status quo, innovation labs play a strategic role in driving business growth. They encourage cross-functional
154 November 2025