Skip to content

Innovation should be focused on turning ideas into cash!

buzzgirl's picture

This is a key message from “Innovate 2008: Is the Tide Turning?”, the major innovation report from Boston Consulting Group released this month.

“It is worth pointing out that only 20% of companies considered a shortage of great ideas to be the problem… Most companies, in fact, have an abundance of good, even great ideas."

But having ideas and turning those ideas into cash are two entirely different things. Innovation is often equated with the former, when in reality it’s all about the latter.”

In conjunction with its companion report “Measuring Innovation 2008: Squandered Opportunities”, this global BCG senior management survey is a must read particularly in today’s tough economic climate.

“Rising dissatisfaction with the return on their investments in innovation may be taking a toll on companies’ willingness to spend”

What are the most significant barriers within industries?
•    Idea selection is the biggest hurdle for technology and communications companies (39%)
•    Manufacturing companies struggle most with a lack of insights to customers (31%)
•    Consumer products companies are hindered most by a shortage of great ideas (29%)
•    Automotive companies wrestle most with an inability to market and publicise their innovations (32%)

What factors are hurting company’s innovation returns:-
•    Lengthy product development times (36%)
•    A risk-averse corporate culture (36%)
•    Difficulty choosing the right ideas to commercialise (33%)
•    A lack of co-ordination within the company (33%)

Interestingly, these are four of the major factors that prompted the re-innovate challenge to help Australian businesses to drive innovation (www.reinnovate.com.au)

For more insight and to download a copy of the reports, go to Bill’s Creativity and Innvoation Blog