Innovation 2009 - the BCG Yearly Survey
Each year James Andrew and his team at BCG publish an insightful survey on the state of innovation. This year, as always, they've created an insightful report on innovation in larger organizations across the globe. They have the usual statistics - 64% of CEOs still rank innovation as a top three priority, and so forth. The BCG authors rightly point out that innovation being de-emphasized or refocused in some firms due to the state of the economy. All in all this is a good snapshot of the state of innovation. I suggest you seek out the report.
What I wanted to drill down into was a chart on page 11 of the report, entitled "What are the biggest obstacles you face when it comes to generating a return on your investments in innovation?" The usual suspects are here - risk averse culture, lengthy development times, a lack of good ideas. Since this is a survey, these factors are necessarily discrete and somewhat overlapping. What I'd like to do is combine or aggregate these factors in a way that makes sense to me, and hopefuly for you.
First, recognize that most of the people who responded to this survey are "C" level officers who think about innovation from a strategic standpoint and who see only the most significant issues or challenges, so to them these may appear as distinct issues which are not connected or integrated. With that in mind, let's consolidate the list of challenges:
What the BCG research points out is that the groundwork for successful innovation - including active, involved leadership, cultural attitudes and compensation aligned to innovation activities - hasn't happened in many firms. Without these environmental conditions, innovation will struggle to succeed.
What I wanted to drill down into was a chart on page 11 of the report, entitled "What are the biggest obstacles you face when it comes to generating a return on your investments in innovation?" The usual suspects are here - risk averse culture, lengthy development times, a lack of good ideas. Since this is a survey, these factors are necessarily discrete and somewhat overlapping. What I'd like to do is combine or aggregate these factors in a way that makes sense to me, and hopefuly for you.
First, recognize that most of the people who responded to this survey are "C" level officers who think about innovation from a strategic standpoint and who see only the most significant issues or challenges, so to them these may appear as distinct issues which are not connected or integrated. With that in mind, let's consolidate the list of challenges:
- Cultural issues - "Risk averse culture", "lack of coordination", "insufficient support from leadership"
- Communication issues - "Lack of coordination", "ineffective marketing and communications", "insufficient support from leadership"
- Compensation issues - "compensation not tied to innovation results"
- Leadership issues - "difficulty selecting the right ideas to commercialize"
- Inputs - "not enough customer insight", "not enough great ideas"
- Execution - "lengthy development times", "inability to adequately measure performance"
What the BCG research points out is that the groundwork for successful innovation - including active, involved leadership, cultural attitudes and compensation aligned to innovation activities - hasn't happened in many firms. Without these environmental conditions, innovation will struggle to succeed.
1 Comments:
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