In today’s technology-driven world, Driving Innovation is a necessity for organizations, yet Large Organizations face unique challenges. Legacy systems, rigid hierarchies, and large-scale operations often slow progress. These challenges were key themes in the panel discussion, “Driving Innovation with Large Organizations”, at the Vietnam Innovation Summit 2024.
The session featured industry leaders: Mr. Burak Pekmezci (Country Lead – Sanofi Vietnam), Mr. Nguyen Anh Minh (Director – Digital Business Department, Shinhan Bank Vietnam Headquarters), and Mr. Howard Silby (General Director (CEO) – NAB Innovation Centre Vietnam). Moderated by Dr. Nguyen Tran Phi Yen (Chief Business Officer – Quickom), the discussion focused on Digital Transformation, innovation barriers, and actionable strategies.
Driving Innovation Begins with Transformation
Mr. Burak Pekmezci shared how Sanofi integrates innovation into core operations, making it not just a function but a fundamental part of the company’s DNA. Instead of treating innovation as an isolated department, Sanofi embeds it into daily workflows, encouraging teams across all levels to embrace change and continuous improvement.
At the heart of this transformation is Sanofi’s “Thoughtful Risk-Taking” principle, which empowers employees to make confident, data-driven decisions. This approach streamlines processes, ensuring efficiency while maintaining strict compliance in the highly regulated pharmaceutical industry. By fostering a culture of calculated experimentation, Sanofi accelerates progress without compromising safety and quality.
Technology plays a crucial role in this journey. Artificial Intelligence (AI) is a key enabler, enhancing both decision-making and operational efficiency. Snackable AI, a system designed to provide quick, actionable insights, supports 18,000 employees in optimizing their workflows. Meanwhile, Expert AI significantly reduces the time-to-market for new treatments by expediting drug discovery and development, reinforcing Sanofi’s commitment to innovation-driven healthcare advancements.
Breaking Barriers to Change in Large Organizations
Large Organizations often struggle with entrenched hierarchies and conservative decision-making. Mr. Nguyen Anh Minh of Shinhan Bank Vietnam emphasized that the bank tackles this through partnerships and external expertise.
A key initiative, Shinhan Bank’s Future Lab, collaborates with startups to drive Digital Transformation. Through innovations like gamification in digital banking and e-commerce integrations, the bank enhances customer experience and strengthens its digital finance leadership.
He also emphasized learning from failure: “In innovation, we only have success and learning,” a mindset that fosters experimentation and adapts to evolving customer needs.
Strategic Resource Allocation for Driving Innovation
Strategic resource allocation is the foundation for sustainable innovation, ensuring that even the most ambitious initiatives have the necessary support to thrive. Without a clear investment strategy, organizations risk stagnation and missed opportunities. At NAB Innovation Centre Vietnam, resource distribution follows a structured model:
- 50% of resources are dedicated to core business operations, ensuring stability and efficiency in the bank’s day-to-day functions.
- 45% focus on enhancing customer experience, leveraging technology to improve digital services and client interactions.
- 5% are allocated to radical innovation—the space where bold, transformative ideas are explored.
“Innovation happens in this 5%,” stated Mr. Howard Silby, reinforcing the necessity of investing in experimental initiatives that push boundaries. While maintaining operational excellence is crucial, breakthrough innovations often stem from ventures that challenge conventional models and embrace uncertainty.
Moreover, customer-centricity remains a guiding principle. Technological advancements should not be pursued for their own sake but must deliver tangible value to customers. By aligning innovation strategies with real-world user needs, organizations can drive meaningful change while maintaining a competitive edge.
Read more about how large organizations are leveraging technology in Vietnam’s Digital Economy 2030 – Quick View at Vietnam Innovation Summit.
Collaboration and Measurable Impact in Large Organizations
The discussion also emphasized the importance of collaboration. For Large Organizations, partnering with startups presents opportunities to explore niche markets and experiment with unconventional solutions.
Having led NAB’s venture capital arm, Mr. Howard Silby shared valuable insights on startup-corporate collaborations. His advice: focus on solving specific customer problems and exercise patience when navigating corporate structures. He also stressed the importance of measuring innovation—not just through revenue growth, but also via cost savings and operational efficiency.
The panel also addressed the often-overlooked aspect of measuring innovation. Mr. Nguyen Anh Minh highlighted the importance of tracking both tangible and intangible outcomes. While traditional metrics such as revenue growth are essential, organizations should also evaluate the cost savings and operational efficiencies achieved through innovation. Mr. Howard Silby added that investing in smaller-scale experiments can save millions by identifying unviable ideas early, thereby avoiding costly missteps.
A Blueprint for Driving Innovation in Large Organizations
The panel provided valuable takeaways for organizations seeking to foster Driving Innovation despite complexity. The key lessons include:
- Transforming internal processes and mindsets.
- Leveraging Digital Transformation and external partnerships.
- Strategically allocating resources to both core operations and disruptive innovation.
- Fostering a culture of customer-centricity and diverse talent.
However, Driving Innovation in Large Organizations is not just about strategy; it requires long-term commitment, continuous learning, and an adaptive mindset. Businesses must be willing to embrace calculated risks, experiment with new business models, and nurture a workforce that values creativity and agility.
Additionally, strong leadership plays a crucial role in fostering an innovation-driven environment. Leaders should act as catalysts for change by empowering employees, removing bureaucratic barriers, and actively supporting cross-functional collaboration. The success of any innovation initiative ultimately depends on how well an organization aligns its vision, culture, and execution strategies.
As businesses worldwide adapt to rapid changes, insights from this discussion reinforce the need for adaptability, collaboration, and a bold approach to Driving Innovation. The organizations that succeed will be those that continuously challenge the status quo, invest in their people, and prioritize customer-driven innovation as a core business strategy.
