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Innovation 2008: Is the Tide Turning ?

Bill Jarrard's picture

Highlights from the Boston Consulting Group’s report “ Innovation 2008: Is the Tide Turning” which was produced in conjunction with “Measuring Innovation 2008: Squandered Opportunities” – See other blog post

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Click on attachment below to download the full report.

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Here are some key points from the report that I think are relevant for innovation practitioners

 

If you plan on remaining a going concern, you need to be able to successfully innovate”

 

  • Innovation remains at the top of most companies agenda’s but lack of return on Innovation (ROI) may be taking a toll on companies willingness to spend.
  • The biggest factors driving down the ROI is
  1. Lengthy development times
  2.  Risk-averse corporate culture
  3. Difficulty selecting the right ideas to commercial
  4. Lack of internal co-ordination.
  • Innovation leading to new products and service for existing customers is seen as most critical for success (89%) rather than “new-to-the-world” innovations. (66%)
  • There is a direct relationship between success at innovation and stock market performance  - globally innovators outperform their peers and “if you are an investor, you’d do well to seek out innovative companies.

 

Capabilities that are critical to innovation success:

  • Developing a deep understanding of customers and their preferences
  • Partnering effectively with suppliers and others for new ideas
  • Ensuring executive-level sponsorship of projects
  • Enforcing timelines and milestones
  • Earmarking sufficient funds for projects
  • Moving quickly from idea generation to initial market entry
  • Balancing risks, time frames and returns across an entire portfolio of projects
  • Fostering a corporate culture that promotes innovation
AttachmentSize
<p>Innovation_Aug_2008.pdf</p>1.33 MB

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