What are the key success factors in establishing a new digital innovation business?

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Establishing a new digital innovation business unit requires a unique set of success factors for organizations to build toward. These include:Strive for best talents.Establishing a digital innovation business unit (DBU) requires a different set of personnel capabilities than an established corporate organization does. Organizations should look for individuals who excel in entrepreneurial type environments; these may not be the same as the organization’s Corporate Stars.Experiment in fail-fast culture.There rarely is a pre-defined path that will knowingly lead to success. Quick turn problem definition, testing, and application of learnings and pivoting are key to finding the best way of working in a DBU.Make the DBU a CxO topic.Placing middle management in charge of a DBU is not enough. Senior-level management support and advocacy is necessary to ensure the DBU receives the right resources and guidance necessary for its success.Solve for critical customer needs.The DBU should work from an identified customer need to the solution versus trying to apply an existing and / or emerging technology to a customer need.Separate the learning muscle from scaling muscle.The DBU should focus on innovation, learning, and documentation / incorporation of key findings with a clear hand-off (timing and process) to production. This will ensure that high performing innovations are rapidly identified and “scaled-up” for commercial application.Ensure Transparency.Change management and engaging the broader organization is vital to gaining buy-in and acceptance of the new group. This should be done at the right level of transparency to ensure the new group is accepted while maintaining the agility and fast pace critical to the success of the DBU.