HLB International - Thought Leadership: Innovation as growth driver
Innovation is not just a buzz word; it is a crucial component for long-term business growth
Innovation is no longer a choice—it’s a necessity, says Marco Donzelli, HLB’s Global CEO. For business leaders navigating an era of unprecedented change, understanding how to integrate and scale innovation is critical for achieving resilience and sustainable growth. From rethinking customer service to embedding sustainability within strategy, innovation has become a guiding force for businesses looking to thrive in the face of rapid technological and market shifts.
Innovation isn’t just a buzzword—it’s a strategic and actionable commitment to rethinking how businesses operate and grow. By drawing on insights from HLB’s initiatives and the HLB Survey of Business Leaders, I offer my advice on how to effectively drive innovation to unlock new areas of growth.
Marco Donzelli
Global CEO, HLB
Colin Nelson
Chief Innovation Consultant, Hype Innovation
Innovation as a driver of business growth
Why is innovation such a powerful driver of growth? It enables organisations to create efficiencies, develop new revenue streams, and enhance customer experiences—all while staying ahead of the competition. According to the HLB Survey of Business Leaders 2025, 65% of organisations prioritise innovation through AI adoption and operational transformation.
Business leaders who invest in innovation are not only increasing agility but also positioning their companies as market leaders. Importantly, innovation is no longer confined to product development; it encompasses processes, partnerships and cultural shifts, creating a holistic impact across business functions.
The key focus areas for driving innovation
Customer service reinvention
Customer service is the frontline of any business, and AI is revolutionising how companies interact with and support their customers. AI-powered tools, such as chatbots and sentiment analysis platforms, allow businesses to deliver faster, more personalised, and efficient customer experiences.
Josh Bersin, analyst and author in the HR space, suggests that leveraging AI for customer interaction doesn’t just enhance service—it transforms it into a scalable and adaptable business driver. Through AI, customer service teams can spend less time addressing repetitive issues and more on high-value interactions that strengthen relationships.
Data analysis for smarter decisions
Data has become the new currency for businesses. Predictive analytics and AI-powered insights provide leaders with a clearer view of market trends, customer behaviours and operational performance. By embedding these tools into decision-making, leaders can make smarter, faster choices that maximise opportunities for growth.
The key, as highlighted by thought leaders like Hype Innovation and Josh Bersin, is empowering teams with these tools and upskilling them to derive actionable insights. Closing gaps in data understanding ensures that businesses aren’t just collecting information but turning it into a competitive advantage.
Strategic partnerships drive speed and efficiency
Few organisations can innovate entirely in-house—this is where external collaborations become priceless. Building alliances with technology providers and thought leaders can accelerate innovation cycles and improve outcomes.
At HLB, partnerships enable shared expertise across our global community. These collaborations reduce costs, scale solutions faster, and ensure that end-users benefit from tailored innovations. Industry research consistently echoes this sentiment that partnerships, especially long-term ones, provide agility and strategic strength during transformation initiatives.
Sustainability and innovation alignment
Modern consumers and stakeholders expect businesses to prioritise ESG initiatives. Yet, sustainability doesn’t exist outside of innovation—it’s deeply integrated with it. Organisations aligning innovative processes, such as sustainable sourcing or decarbonisation, are reaping rewards in customer trust, improved reputation, and operational efficiencies.
Sustainability initiatives present a unique growth opportunity, enabling organisations to thrive ethically in competitive markets. By embedding sustainability into the innovation roadmap, businesses strengthen resilience while setting the stage for long-term growth.
How business leaders can embed innovation into organisational strategy
While each business’s innovation framework will differ, there are universally applicable strategies to ensure that innovation takes root and delivers tangible results. Consider these six practical approaches for embedding innovation into your organisation’s DNA.
1. Develop a culture of innovation
Innovation doesn’t thrive in a silo—it requires a company-wide mindset. Leaders should encourage experimentation, where small wins like process automation can snowball into organisational transformation.
2. Form strategic partnerships
Strategic alliances with external vendors, thought leaders and AI providers offer businesses an edge. Partnerships help reduce overheads and introduce specialised capabilities that enhance agility and responsiveness.
3. Invest in people and AI capabilities
Josh Bersin continually emphasises the importance of balancing human and AI collaboration. It was also the key theme of the HLB Survey of Business Leaders for 2025.
The HLB research found that 60% of Profit Accelerators (Businesses with greater than 5% profit growth) focus on learning and development to improve workforce effectiveness. Nearly half of them report having a high performing and engaged workforce. Upskilling teams to adopt and maximise AI tools ensures better outcomes, as savvy employees can turn complex algorithms into actionable solutions.
4. Use data to fuel growth
Data-driven decision-making ensures that leaders act on evidence rather than assumptions. Predictive analytics unlocks proactive planning, while segmentation enables hyper-personalised customer targeting.
5. Connect sustainability with growth goals
Promote initiatives that align sustainability efforts with business outcomes. Transparent ESG reporting, circular economy practices, and ethical sourcing directly benefit both society and your bottom line.
6. Adopt an agile leadership mindset
Leading with agility allows businesses to pivot effectively in response to market changes. It’s about balancing fast decision-making with evidence-based insights, ensuring that every move reduces risks while maximising returns.
Tapping into your organisation’s innovation potential
The challenges of today’s business landscape demand decisive action. Innovation isn’t just about keeping pace—it’s about setting the pace. Business leaders who actively integrate technology, invest in partnerships, and align sustainability with growth are those who will not only survive but thrive.
The path forward is clear: by embedding innovation into every facet of your organisation, you build the resilience to face uncertainty and the agility to seize opportunities.
Are you ready to take the next step? Whether you’re scaling your current systems or exploring enterprise-wide transformation, this is the moment to act. By using tools, knowledge and partnerships like those showcased here, you can lead your organisation into a future defined by growth, resilience and innovation.
[1] Source: McKinsey & Company. “The pairing that can ensure an incumbent’s survival”, June 2019