Everything around us is evolving and transforming. Driving innovation and embracing new technology has never been more critical than it is now. It’s a competitive advantage if a company does a difficult and expensive thing a little better – a smart twist on what came before.

In the Middle East, companies are tinkering with the status quo. The spirit of innovation is quietly transforming everything — from stores and delivery services and how we work to sustainable energy solutions.

However, consistent innovation is difficult. Some companies worry about their ability to scale innovation, while others struggle to identify disruptive technologies and processes.

For the past couple of years, Fast Company Middle East has produced an annual list of the Most Innovative Companies (MIC), celebrating organizations whose disruptive innovations set them apart from their competitors. 

We talked to past MIC winners to understand what enables them to continuously innovate. 

CENTER OF SOLVING PROBLEMS

Wael Ismail, PepsiCo’s Vice President for Corporate Affairs for Africa, Middle East and South Asia says innovation is about taking a holistic approach to success, focusing on inspiring positive change for both people and the planet.

“We place innovation at the center of solving problems, recognizing its critical role, especially when it comes to our sustainability agenda. By embracing diversity in thoughts, perspectives, and actions, we can drive impactful solutions that foster adaptation, mitigation, and systemic action.”

It’s also a multifaceted concept beyond developing new products and services. Kapil Sethi, Deputy Chief Executive Officer of GMG, says innovation involves enhancing business operations, from streamlining manufacturing processes to reimagining customer service workflows. Embracing technology is also vital, and it may include using AI for data analysis, implementing blockchain for supply chain transparency, or developing proprietary software solutions.

“Perhaps most importantly, innovation fosters a company culture that embraces change, encourages risk-taking, and values creative problem-solving,” says Sethi, adding innovation is fundamentally guided by a set of core values that emphasize unity of purpose, continuous evolution, proactive change, smart simplicity, and consumer-centric focus. 

“These values create an environment where innovative ideas can flourish and drive meaningful impact,” he adds.

Alaa El Huni, CAFU’s Chief Business Officer, explains that his organization is continuously driving innovation to enhance the customer experience.

“From automotive connectivity to refueling, we use technology to reinvent the mobility infrastructure, to make things better and easier for everyone. 

As a tech business, we recognize the need to adapt and evolve with the rapidly changing environment. Our success hinges on our ability to innovate,” adds El Huni.

CULTURE AND CREATIVITY

Ismail says fostering innovation begins with a supportive and inclusive culture. “Embracing challenges as opportunities for learning and innovation is a core aspect of our culture, prioritizing creativity, collaboration, and positivity.”

It’s important that everyone needs to feel like an owner of the company. “This sense of ownership triggers accountability and motivates people to do more, not just because it’s their job, but because they believe in what they’re doing,” says Ankit Shah, CFO of Silkhaus.

Shah also adds the importance of collaboration, bringing together diverse minds in an open and free environment and welcoming every idea.

For a company to foster innovation, it must thrive on transparency and community, where risk-taking is encouraged and celebrated. “We use an online portal for seamless document sharing and hold regular company-wide meetings to highlight and celebrate achievements while ensuring transparency and dialogue remain top of mind,” says El Huni.

Additionally, according to Laurent Duffier, Managing Director L’Oréal Middle East, key cultural elements are necessary to foster innovation within organizations: a research culture that constantly redefines what’s possible by embracing various cultures and local insights and empowering an entrepreneurial spirit and agility.

“True innovation requires a consumer-obsessed culture. By constantly gathering consumer insights, companies can ensure they deliver products and experiences that resonate with their target audience,” adds  Duffier.

According to Sethi, for retail companies, communities are a “wellspring of inspiration for innovation,” and staying connected to them provides insights and opportunities to develop innovative solutions and make a meaningful impact. 

“Actively promoting a diverse workforce and an inclusive environment brings together a rich tapestry of perspectives and experiences essential for driving innovative thinking,” Sethi adds. 

Since innovation and learning are deeply linked, he adds, it is crucial to encourage ongoing skill development and knowledge acquisition among employees. This could involve training programs, conference attendance, or cross-functional project opportunities.

EMERGING TRENDS

The rise of consequential applications, such as generative AI, has significantly impacted organizations. “It is revolutionizing product creation by automating development activities and enhancing the end customer experience, opening new avenues for growth and efficiency,” says El Huni.

He references a report by BCG, which emphasizes that having a clear and compelling generative AI strategy today is crucial for future industry leadership.

For Shah, AI and sustainability are the two main trends shaping the future. 

“We are exploring how various forms of AI can innovate product development, marketing strategies, and customer service, leading to more efficient operations. At the same time, there is a growing focus on sustainability and green technology. Businesses increasingly recognize the importance of being environmentally responsible and integrate sustainable practices into their core strategies.”

Discussing sustainability in particular, Sethi highlights the increasing emphasis on environmental and social responsibility as a significant driver of innovation. Now, companies are compelled to develop new technologies, products, and processes to tackle sustainability challenges. “This encompasses innovations in clean energy, circular economy practices, sustainable product design, and supply chain optimization.”

Duffier highlights inclusivity as a growing force within organizations, and L’Oréal is no exception. “L’Oréal has always championed the beauty of diversity. As we move forward, expect even greater dedication to developing innovations catering to the unique needs of all ages, ethnicities, skin tones, and hair types, ensuring everyone feels seen, represented, and empowered to express their unique beauty.”

Ultimately, companies must be intentional about weaving an innovation mandate into their culture to enhance their readiness for innovation. This involves being prepared to develop and launch groundbreaking products and services and integrate technological advancements like AI.