Ekaterina Afanasyeva: Ignite Your Business Growth Through Innovation

Ekaterina Afanasyeva: In this volatile landscape, one approach stands out to me: product-led growth. It encompasses key tactics including user-centric product development, data-driven decision making, SCRUM framework, and so called HADI-cycles to quickly and comprehensively check your ideas. These strategies were initially exclusive to startups, businesses that naturally thrive amidst high uncertainty when traditional methods fall short. Their goal is to maximize output with minimum resources and carve out a sustainable market presence.

However, it's clear now that these techniques are equally beneficial for larger corporations. I see established businesses leveraging these strategies worldwide and am firmly convinced that this is a strategically sound direction to navigate through the current economic climate.

In a business landscape where external factors shift rapidly and unpredictably - as we're witnessing now - there's still a need for business growth and evolution. Accelerated adaptation can be achieved by companies of any size by implementing a product-led growth strategy to drive their internal development initiatives. This approach involves shortening development cycles, quickly identifying the user demand for new features, and making swift operational adjustments. In times of instability, reliance solely on gut intuition is insufficient. Techniques that were once successful may falter under these new circumstances. To navigate the chaos of uncertainty, it's essential to incorporate a process of real-time demand forecasting. Data collection and analysis must become an integral part of managerial decision-making.

Ekaterina Afanasyeva: Absolutely, as well as in corporate entrepreneurship. I classify this as a startup variant where a major corporation grants employees or teams the autonomy to cultivate their own business concepts without leaving the company. This approach holds significant potential for growth. For one, a new line of business could generate an additional income stream for the company. Secondly, an enterprise's employees inherently understand their business's needs and structure better than any invited consultant, and it is quite challenging to incorporate outside solutions into pre-existing systems and processes. Most importantly, by encouraging corporate entrepreneurship business enhances employee engagement and reduces the risk of rejection to change.

A couple of years back, I served as a mentor at Innopolis University in their 'Chief Data Officer' program, which was designed for employees of state corporations. More than half of the attendees lacked understanding of the business realm and the technology. The eleven teams I mentored, made up of HR and accounting professionals, educational leaders from organizations like the Water Supply Agency, Rosreestr, and several universities. Despite all odds they were able to develop prototypes to digitize their work within one month. They then successfully presented their innovative products before a jury that included representatives from the University 2035 and the Ministry of Digital Development. That case revealed to me that any company can tap into internal resources for innovation. By leveraging the inherent understanding and experience of current employees, and applying startup acceleration tactics, they can be swiftly and effectively trained in the fundamentals of business management, financial planning, market and technology analysis.

Ekaterina Afanasyeva: Absolutely. From the outset of my career, I've been engrossed in the world of audiovisual technologies (AV Tech) and the Internet of Things (IoT). To effectively market such technologies, a comprehensive understanding of customers' requirements becomes a prerequisite, which inherently involves scrutinizing the business processes companies plan to enhance.

During my tenure at AUVIX, I took a deep dive into creating corporate technology solutions for bolstering business communication. In 2020 and 2021, I broadened my understanding with research on corporate adaptation to remote and hybrid work, leading to the development of a five-factor Hybrid Work Environment model. The inception of this model took place within the AV Club with which I've collaborated since 2009, regularly being invited as a keynote speaker at AV Focus events. These events draw representatives from hundreds of system integration companies spanning Russia, Kazakhstan, and Belarus. My objective is not merely to present technology trends but to foster a keen sensitivity towards user needs in the audience — a component I believe to be paramount.

The bedrock of any successful business largely depends on the understanding of user needs. Hence, the application of market research that startups typically employ, such as surveys and in-depth interviews, becomes indispensable. This is particularly relevant for system integration projects where company employees are in fact the end-users. Thus including employees in the solution development at the initial stage becomes critical. My specialization enables me to identify opportunities for innovation in corporations, educational institutions, and government entities.

Ekaterina Afanasyeva: We were confronting the economic crisis of 2008-2009 when thanks to the new business venture, we managed to clear the entire surplus inventory of Philips PRONTO panels and resumed purchases by the end of the year. Strategic analysis and market research helped me suggest the development of a new business unit that strongly deviated from the company's core business in terms of product range, target audience, and approach. In just two years the business unit surged to a revenue of $2.5 million, maintaining a substantial margin (over 30%), despite increased marketing costs and personnel expenses (a team of a product manager, sales managers and engineers was hired). This case shows that a new business initiative can undoubtedly foster development, provided that the company's capabilities and resources are correctly evaluated.

I consider each new market and business unit as a startup, and therefore, the frameworks I mentioned earlier are applicable. Decision-making requires a balance between what your intuition suggests and the market data at hand. The efforts and resources expended in entering a new market must be justified by higher sales growth rates, profit, or a diversification strategy.

Ekaterina Afanasyeva: Lack of adaptability is a common obstacle in business development. The difficulties of adjusting to sudden changes became particularly prominent during the pandemic, when it was necessary to transition employees to remote work. I took note of press releases from global tech corporations regarding their strategies and responses to the lockdown. It was surprising that even advanced companies offering cutting-edge tech solutions for the market internally abide by century-old management principles. The 2020 pandemic forced many companies to reassess their HR policies and management style to take full advantage of technological capabilities. I conducted research on the adaptation of Russian companies to remote and hybrid work formats, the results of which were recently published in the scientific journal 'Current Research.' After lifting the restrictions, a third of the surveyed companies stated that they would not make any changes and would return all employees to the office. In times of changing circumstances, it's riskier not to change — a halt in development can lead to a significant reduction in revenue and the loss of any competitive advantage.

Ekaterina Afanasyeva: It's fair to say that the business strategies commonly associated with the startup sector have been foundational to my approach from the onset. This differentiates an entrepreneur — innovation is a hallmark of startups. The decision to reengineer major company departments, shifting from internal competition for projects to a more collaborative model, marked a significant innovation. This transformative initiative kicked off in late 2017, spanned nearly two years, and its impacts are still tangible today.

During the process, I undertook a comprehensive segmentation of the client base and introduced a manager specialization for distinct customer segments and product lines — a concept that was quite avant-garde at that moment. Consequently, when sanctions were imposed last year, AUVIX demonstrated agility by promptly pivoting to alternative markets and embracing domestic and Chinese manufacturers. A key contributing factor was that the team already exhibited the requisite competencies and was equipped to operate flexibly within their assigned product categories. I conceived and executed a system that significantly diminished the company's supplier dependency. This now serves as a paradigm of how deep customer insights can catalyze corporate change, ultimately fostering sustainable business growth.

Ekaterina Afanasyeva: Witnessing and evaluating unique projects aimed at digitizing organizations is an inspiring experience. As a business consultant, I frequently engage with companies seeking to execute system integration initiatives. When such projects are sparked by the customer organizations' employees, a synergy emerges. My role as a business consultant is to bridge the innovative propositions formed by company staff and the executing integrators, turning those employee initiatives into effective, business-enhancing corporate products.

Both corporate entrepreneurship, which is the internal driver of innovation within companies, and startups, which commence from scratch, require flexible thinking, market understanding and analysis, along with the ability to rapidly test ideas and adapt to external changes applying data-driven decision making. These are the skills necessary for all parties to maintain sustainable development during periods of change and increasing uncertainty.