An interview with
Stephen Liguori
Former Executive Director, Global Innovation & New Models
GE
Former Executive Director, Global Innovation & New Models
GE
Interviewed by Sam Narisi
Why Marketers Must
Get Involved in Helping Their Companies Innovate
As executive director of global innovation at GE, Stephen
Liguori led the company in building break-through customer offerings in new
growth areas. Prior to this position, he served as the company’s executive
director of global marketing, and with this background, he understands the
value of marketing in helping companies develop and shape new business models.
We recently spoke with Liguori about marketing’s role in
innovation and how larger organizations can compete with start-ups when it
comes to generate new ideas.
Describe how
marketing fits in with innovation.
A lot of what I do is get people to understand that the way
buyers want to consume products and services is becoming a combination of digital
and physical. GE for example has grown up making very physical things – jet
engines, ultrasound machines, power turbines, washing machines. Those are now being
connected digitally, developed digitally, and monitored and maintained
digitally. That creates a whole new ecosystem.
New business models are not about new technology per se; we
call that invention. Innovation is how you bring ideas to marketplaces in
different ways. The app store is the classic modern-day new business model.
There’s nothing new about the software, what’s new is the business model.
When you talk to marketers about digital, they talk about finding
a better way to mine social data to get you to buy their flavor of yogurt or
their color shoes. That’s only the tip of the iceberg. The message I bring to
executives is that innovation is going to be disrupting business in every way,
shape, and form. This whole idea of digital meeting physical will completely
radicalize every aspect of business.
We’re trying to get marketers to understand that they need
to get more involved in how business is run. Innovation is a 360-degree term
now. Marketing has to go from end-to-end in a company. You’ve got to be
involved in the company’s total business strategy, not just its promotional
strategy. That’s where a lot of marketers get hung up and put their jobs at
risk because they’re taking too narrow a focus.
How should marketers
adapt to fulfill that changing role?
First of all, you should go hug a programmer, and you yourself
should get some programming experience and hire people who know how to do
programming. You’re going to need a much broader skill set, and you’re going to
need to navigate in the world of IT. One example is data science. How many
marketers are truly facile with data? And I don’t mean just mining social data,
I mean someone who can do complicated algorithms to help companies run their
businesses better.
Marketers have to go and get skills around things like data
science, programming, and finance, and number-one on the list would be understanding
the implications of new business models for your organization. By virtue of
being able to step back and connect customers to their firms, marketers are the
ones who have a chance to pull this all together.
When it comes to
innovation, how can established companies compete with small startups?
We have a strong relationship with a number of startups,
venture capital firms, and things like that. The trick I can tell you is that
the principles are the same in a big company in terms of what you need to look
out for, but the application of them is night and day. You cannot pretend to be
a startup when you’re a billion-dollar company. You have a whole finance
department and a whole legal department, for example.
You can’t fire all the lawyers because that’s just how a big
company has to be run. So what do you do if you want to be startup-like? How do
you adopt those ideas in a big company? That’s where I work very hard on
simplification. At GE we, focused on figuring out the customer problem we’re
trying to solve, and getting the bureaucracy to be adaptive and flexible enough
to develop solutions. The bureaucracy can’t go away, but you can do a lot of
things to streamline it.
A question that’s a personal favorite of mine is, “How do you become comfortable being uncomfortable?” I can guarantee I don’t know the answers to everything I’ve started doing, but I know I’m headed in the right direction. The way you get there is to keep experimenting and keep learning. I know I’m going to have bumps and bruises along the way, and that’s OK. You have to get your team, your boss, and your mentors to understand that it’s a learning journey. If you can get comfortable being uncomfortable, you can be a successful entrepreneur inside of a big company.
A question that’s a personal favorite of mine is, “How do you become comfortable being uncomfortable?” I can guarantee I don’t know the answers to everything I’ve started doing, but I know I’m headed in the right direction. The way you get there is to keep experimenting and keep learning. I know I’m going to have bumps and bruises along the way, and that’s OK. You have to get your team, your boss, and your mentors to understand that it’s a learning journey. If you can get comfortable being uncomfortable, you can be a successful entrepreneur inside of a big company.
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