Innovation is being redefined by Generative AI, economic turbulence, and shifting consumer demands. Ahead, we’ll share practical strategies organizations can use to adapt, build resilience, and thrive in this new era of innovation.
The innovation landscape
Shifting forces and new priorities
Over the past five years, the innovation landscape has been transformed by Generative AI (GenAI), economic and geopolitical volatility, evolving consumer expectations, and the lasting impact of COVID-19. As one example of these changes, today’s consumers now expect more than ever—personalized experiences, digital engagement, omnichannel service, and a heightened focus on trust and inclusion. Meanwhile, the pandemic’s legacy continues to reshape how organizations work, source talent, and innovate.
Despite these shifts, innovation remains a top priority. Organizations are doubling down, with nearly 70% of surveyed organizations reporting that recent market changes have not reduced their innovation budgets.¹ However, fewer than 3% are truly “innovation ready”—possessing both a clear ambition and the resources to execute effectively in today’s environment.²
To close this gap, organizations are turning to four distinct innovation models that emphasize alignment and collaboration. These models—Lab, Foundry, Bridge, and Venture—offer pathways to build innovation readiness and resilience.
Four innovation models
Building blocks for progress
To select the right innovation model, organizations should consider two critical drivers: innovation ambition and resource availability. The following four models can be applied individually or in combination, depending on organizational needs and market context.
Bringing it all together
The power of alignment
While each innovation model offers unique advantages, the most resilient organizations use them in combination—aligning internal capabilities, external expertise, and strategic investments to create a dynamic innovation ecosystem. For example, an organization might use the bridge model to bring in specialists who help establish an internal venture fund (foundry) or combine lab and venture approaches to build and acquire new capabilities.
The focus is on alignment: ensuring that innovation ambition matches resource availability and that all efforts are coordinated toward shared business outcomes. Organizations that foster collaboration across teams, functions, and external contributors are better positioned to adapt and thrive amid ongoing disruption.
Let us help you become innovation-ready
Defining the right innovation model is challenging—less than 3% of organizations reported they believe they are truly innovation-ready.⁸ Success requires a clear innovation ambition, the right resource model, and the application of leading practices to de-risk strategies and drive long-term growth. By aligning ambition with resources and leveraging the right mix of innovation models, organizations can maximize ROI and achieve meaningful, sustained impact.
We can help your team define your innovation ambition, establish an appropriate model to execute on that ambition, and leverage recent insights to help enhance your ROI and accelerate your market impact.
About the authors
Courtney Sherman is a principal at Deloitte Digital and co-leads our Product Innovation practice. As a leader in human-centered design, she develops solutions that cross over the physical and digital environments, including innovation strategy, customer experience strategy, concept development, and innovation capability building.
Matt Josephson is a principal within Deloitte Consulting LLP’s Innovation and Product Strategy practice and has 20 years of experience leading cross-disciplinary teams to identify, design, and launch new businesses and experiences.
Menes Etingue Kum is a senior manager at Deloitte Digital, in our Digital Product and Innovation practice, where he helps financial service companies define and execute on innovation strategies that elevate the human experience.
Additional authors include Kellie Ojeda and Eryn Bathke, with support from Jessica Toib and Ann Hseih.
Generative AI for customer experience
How GenAI can transform digital products and drive growth
Mindsets matter: Four keys to creating GenAI experiences consumers trust
Sources
1. Deloitte, “2023 survey of innovation excellence." 2023.
2. Rohrbeck, René, and Menes Etingue Kum. “Corporate foresight: Its antecedents and contribution to radical innovation capability." Technological Forecasting and Social Change 129 (2018): 251-270.
3. Deloitte, “2023 survey of innovation excellence." 2023, p 5.
4. Deloitte, “M&A index 2023." 2023, p. 17.
5. Reuters, “Global M&A activity smashes all-time records to top $5 trillion in 2021.” December 20, 2021.
6. Finerva, “2024 valuations and multiples by sector," accessed August 25, 2025.
7. Palmer, Maija, “CVCs must show how they differ from VCs," Global Corporate Venturing, January 22, 2024.
8. Rohrbeck, René, and Menes Etingue Kum. “Corporate foresight: Its antecedents and contribution to radical innovation capability." Technological Forecasting and Social Change 129 (2018): 251-270.
