Innovation taking place
When looking at where innovation is actually happening in the company, the survey results from mid-sized corporates did not differ greatly from the full survey results. For the mid-sized corporates that are innovating, the research showed that it is mainly taking place within the individual business unit with 73% of respondents, followed by a business development or innovation unit for 42% of respondents. Only 8% of innovation was taking place in external innovation labs.
Joakim says: “It’s interesting to note this part of the survey as we saw a lot more innovation labs three or four years ago. Many companies we’ve talked to have concluded that whilst innovation labs were great at coming up with ideas, they were not necessarily very relevant to the business. Driving innovation as an area of its own didn’t really produce any viable business cases, just lots of interesting technology for its own sake.”
“An interesting factor to note is that innovation is a very large term with many layers. So you have innovation in incremental improvements of a product, process or service and they would typically reside within the individual business units. Then you have larger scale innovations, maybe disruptive innovations where typically the business model innovations lie. They would typically not be within the individual business unit but in more of a business development or innovation unit. This is why we see that the numbers don’t add up with 73% plus 42%. Innovation happens in several places in a company at the same time,” Joakim continues.
The survey showed that the strongest driver for customer innovation amongst mid-sized corporates was moving to meet the needs of emerging customer requirements.

Drivers of innovation and business model evolution (compared to large corporates).
Taru says: “Looking at emerging customer requirements requires companies to indirectly take into account all sorts of external shocks that can impact the business. From the survey results, it was surprising to note how little external shocks like the corona crisis seemed to influence business model innovation in mid-sized companies. On the other hand, consumer behaviour in particular is rapidly changing. Therefore focusing on emerging customer requirements means many times that companies have already indirectly taken into account the business disruption or external shock.”
Keep pushing the innovation agenda and focus on automation
In order for finance/treasury departments in mid-sized businesses to move to the heart of innovation in the company, the Treasury 2025 report advises them to change perceptions and build bridges in addition to automating their operations. By using the shift to new business models and real-time they have an opportunity to become more involved in business transformation and earn a seat at the table.
The report also suggests that they need to demonstrate relevance by showing that they can have a positive impact on the customer experience. Finance/treasury departments can also become innovation role models by offering to investigate and drive their own tech initiatives with the support of the IT department. With some successful innovation projects under their belt, the department will be able to build credibility with the rest of the business.
According to the report, finance/treasury departments should also seek to build innovation skills by recruiting forward thinking digitally savvy employees. They should also make the most of new business models by getting involved early, co-creating and adding value. In this way the Treasury 2025 report suggests the finance/treasury can be an enabler or driver of innovation—not an obstacle.
Joakim concludes: “The time has come for treasuries to make their voices heard and have an impact on emerging business models. By somehow finding the time and resources to support innovation projects where possible, they can move from a fairly functional role to becoming key enablers of innovation in their organisation.”