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

The challenge

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.

The solution

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.

Results

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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