Case from the insurance industry
Tryg create real impact with new innovation model
The corporate innovation team at Tryg gains several benefits from their new and venture based innovation model. Blue Trampoline helped them design it.
About the partnership with Blue Trampoline
“Our new innovation model help us reduce time-to-market for the right products and business models”
Peter Sylvest Svendsen
Commercial Innovation Manager, Tryg
Incumbent players are challenges by new startups and innovative business models
Tryg are the largest insurance company in Denmark and the second largest in Scandinavia. They offer insurances to private and corporate customers in Denmark, Norway and Sweden. 25% of all Danes are insured through Tryg and their customers are among the most satisfied.
Despite the strong market position the need for innovation is growting at Tryg. The whole insurance industry is undergoing massive change and transformation and traditional products and business models are challenged by new, innovative startups, who are trying to create better and more affordable value propositions.
Tryg consider this transformation to be an opportunity and have therefore established NBCI (New Business Customer Innovation). This is where future products and business models are designed, validated and launch. NBCI already have several successful projects to show for.
The leadership of NBCI recognised two areas, where they believed they could further improve their performance. First things was to reduce time-to-market and secondly, they wanted more certainty that they are investing their scarce resources in only in the best innovation opportunities.
Design and implementation of venture based innovation model
To achieve the goals of reducing time-to-market and not wasting scarce resources on products and business models with no legs to walk on, it was quickly decided to design and implement a venture based innovation model.
They key principles in the venture based approach to innovation is that Tryg make a lot of small bets in ideas and opportunities that supports their four strategic innovation arenas. The initial investments are made in small and cheap experiments with the purpose of testing and validation whether they are solving a problem big enough to justify investing resources in solving it.
This enables Tryg to get in the market from day one with new ideas and to make informed decision whether they can justify doubling down on their initial investment. If the assumed job-to-be-done is validated, they will. If not, they will move on to the next innovation opportunity.
As untested assumptions, which are are critical for an idea to develop into a new and profitable revenue stream, are tested and validated, Tryg are raising their bets. This enables them only to invest big money and resources into those innovation opportunities, which will create most value for the customers — and the shareholders.
Blue Trampoline helped Tryg design their new, venture based innovation model, but also to develop the innovation tools needed to get real value from it. The new approach to innovation was tested and validated on specific projects before handed over to NBCI.
Reduced time-to-market and high value innovation portfolio
Den venture based innovation model has already made real impact for Tryg.
The experimental approach has provided innovation teams at Tryg with an easy, fast and efficient way to test and validate critical uncertainties. This helps them make real and fast progress for the best innovation opportunities — and to invest with less risk.
The venture based approach to innovation has also made it easier to track and communicate the value of innovation. By testing one critical uncertainty at a time they can develop trustworthy and dynamic business case for their most promising innovation opportunities — based on data instead of hope.
The venture based approach to innovation has helped improve the strategic as well as the financial value of Tryg’s innovation portfolio. The main reason is that bad ideas are killed early, which leaves Tryg with more resources to invest in the best innovation opportunities.
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