Innovation Success Lessons from Microsoft, GS1, and Accenture

At the recent FoodTech & Supply Chain Innovation Summit hosted by 1871 in Chicago, a panel discussion provided valuable insights into how leading organizations approach corporate innovation. Moderated by Alli Hofferica, Innovation Director at Accenture, the conversation featured Ryan Murphy, Supply Chain Architect at Microsoft, and Bob Czechowicz, Senior Director of Innovation at GS1. Together, these experts shared strategies for fostering innovation within large organizations, discussing the balance between staying grounded in strategic priorities and pushing the boundaries of possibility.

The discussion covered a range of topics, from aligning innovation with organizational goals to cultivating a culture of curiosity and resilience. For corporate leaders, these insights offer a practical framework for embedding innovation into the fabric of their organization while navigating the rapid evolution of technology.

“Innovation starts with where you are, whether it's tweaking processes or rethinking business models, the key is embedding an innovation mindset to solve real challenges.” - Ryan Murphy, Supply Chain Architect at Microsoft

Aligning Innovation with Organizational Objectives

For both GS1 and Microsoft, innovation isn’t just a standalone initiative; it’s tightly woven into their broader organizational missions. At GS1, Czechowicz emphasized that while the innovation team operates independently, they’re deeply connected to the strategic goals of other departments. “We have our unique identity of being the innovation team,” Czechowicz explained, “but we're tied directly to the objectives of many other teams.” This balance allows GS1 to pursue bold ideas while ensuring their efforts align with core business goals, creating innovation that is both ambitious and strategically relevant.

Microsoft’s approach is similarly grounded. Murphy discussed how Microsoft’s cloud and supply chain operations have clear imperatives, particularly around scaling the infrastructure to meet growing demand, such as delivering GPUs to data centers. “There’s no gray area when it comes to priorities,” Murphy shared, emphasizing that a structured process helps them stay aligned. This focus on clarity not only drives efficiency but also enables Microsoft to innovate with purpose, integrating AI and other advanced technologies into the supply chain in ways that support their overarching mission.

Cultivating a Culture of Innovation

A recurring theme during the conversation was the importance of fostering an innovation-friendly culture. For GS1, building this culture has involved creating a hybrid process that blends traditional innovation practices with Agile methodologies. By combining the best of both worlds, GS1 encourages cross-functional collaboration and empowers teams across the organization to contribute to innovation. Czechowicz noted, “We’ve created a hybrid process that takes the best of what our team did with their Agile methodology and the best of what we've done with our innovation process,” underscoring how a structured approach can still allow for flexibility and creative input.

Murphy described a similar mindset at Microsoft, where innovation is not limited to groundbreaking projects but is embedded in everyday activities. “Innovation starts with where you are,” Murphy said, explaining that even incremental improvements can drive significant value. This approach democratizes innovation within Microsoft, creating an environment where all employees feel empowered to contribute to the company’s innovative efforts, whether through small process improvements or larger, transformative projects.

Leveraging Partnerships for Broader Perspectives

Both GS1 and Microsoft recognize the value of external partnerships in keeping their innovation ecosystems dynamic. For GS1, engaging with partners like 1871 and collaborating with startups offers a “radar system” to stay attuned to emerging trends and external innovations. “We set up that network and then let things come our way,” Czechowicz explained, illustrating how an openness to outside perspectives can enrich internal innovation efforts and drive faster progress.

Microsoft’s Murphy echoed this sentiment, emphasizing the importance of diverse viewpoints. By collaborating with Accenture and engaging with the startup community, Microsoft brings fresh ideas and cutting-edge technologies into their supply chain initiatives. “1871 is part of our innovation process,” Murphy noted, underscoring how external partnerships not only bring new technology but also infuse the organization with a continuous flow of fresh insights and approaches.

Embracing Failure as Part of the Process

A shared lesson from both leaders was the importance of viewing failure as a critical part of the innovation journey. Czechowicz shared an example from GS1’s digital receipts initiative, a project the team was passionate about but eventually had to pause due to limited market traction. “We kept pushing and pushing... and ultimately realized that we’re just pushing this uphill,” Czechowicz reflected. GS1 has since embraced failure as a learning tool, even encouraging leaders to share “failure resumes” to normalize setbacks and reinforce the importance of resilience.

Murphy described a similar experience from a Microsoft hackathon, where a project he spearheaded didn’t achieve the expected results. “We didn’t even make the top 10,” he shared, candidly. However, this experience reinforced the value of failing fast and moving on. At both Microsoft and GS1, failure isn’t a setback; it’s an opportunity to learn, iterate, and approach future challenges with more insight and agility.

Nurturing Curiosity and a Growth Mindset

Innovation thrives in an environment of curiosity and openness to learning, a point highlighted throughout the panel. At GS1, curiosity is cultivated through simple yet powerful practices, such as starting brainstorming sessions with the question, “How might we…?” Czechowicz explained that this question-driven approach encourages teams to approach problems with an open mind, fostering creativity and adaptability across the organization.

Murphy emphasized the importance of a growth mindset at Microsoft, describing it as an “activity” that requires intentional investment. “The growth mindset isn’t something that happens to you. It’s an activity,” Murphy explained, adding that Microsoft creates structured opportunities for employees to explore new ideas and share insights with each other. By making curiosity an integral part of their culture, Microsoft and GS1 ensure that their teams are equipped to respond to changing market dynamics and technological advancements.

Integrating AI and Preparing for the Future

The panelists also discussed the impact of AI on their innovation strategies, highlighting both the opportunities and challenges of integrating advanced technologies. Microsoft’s approach has evolved from an “AI bolt-on” strategy to an “AI-native” model, where AI capabilities are built directly into core processes. “We're thinking about how AI changes the physics in the supply chain,” Murphy shared, emphasizing that AI is reshaping foundational processes and driving new efficiencies. This shift not only enhances Microsoft’s capabilities but also positions them as a leader in AI-driven supply chain transformation.

Czechowicz added that while AI is powerful, it requires a strong foundation of data integrity and interoperability. “As these technologies evolve, it doesn’t change the underlying need for the basics, the data integrity, data structure,” he said, highlighting that the success of AI initiatives depends on getting these fundamentals right. Both leaders agreed that AI should be thoughtfully integrated into the organization’s strategic goals, rather than pursued as an isolated objective.

Conclusion: Innovation as a Deliberate Practice

The conversation between Microsoft, GS1, and Accenture leaders offers a powerful reminder: innovation doesn’t happen by chance, it requires deliberate effort, structured processes, and a willingness to embrace both big and small ideas. Whether it's aligning innovation with clear organizational objectives, fostering a culture of curiosity, or leveraging external partnerships for fresh perspectives, these principles are critical for enterprises navigating today’s fast-changing landscape.

In the age of AI and technological disruption, the insights shared during this panel underscore that success lies in striking the right balance between near-term practicality and long-term vision. Organizations that embed innovation into their culture, empower teams to experiment without fear of failure, and adopt a mindset of continuous learning will be best positioned to thrive in the years ahead.

As leaders and entrepreneurs consider how to make their organizations more adaptable, the lessons from this discussion serve as a blueprint: prioritize problem-solving, remain open to collaboration, and never lose sight of the human element that drives meaningful change. Whether you’re applying AI to transform supply chains or rethinking processes to enhance customer experiences, the path to innovation success starts with a commitment to purpose and a passion for progress.

About the Author

Jason Hauer is CEO of HauerX Holdings and an Inc. 500 honoree. He partners with commercial AI tech and solutions companies to turn ambition into market leadership.