Innovation Important to Global CEO’s
The unsurprising results from a global CEO survey by PriceWaterhouseCoopers indicate that innovation, along with increasing their existing business, now outstrips all other means of potential expansion, including moving into new markets, mergers and acquisitions, and joint ventures and other alliances. Nearly 80 percent of CEOs surveyed believe innovation will generate ‘significant’ new revenue and cost reduction opportunities over the next three years.CEOs are re-thinking their approach to innovation and increasingly seeking to collaborate with outside partners and in markets other than where they are based. The study found that 84% of companies have changed strategies within the past two years. PwC’s Chief Executive Officer, Bruce Hassall says “The next decade will be the ‘most innovative time’ In mature markets companies must innovate to differentiate themselves; in emerging markets, they need innovation to lessen their dependence on lower costs”. The study also identified several myths in Open Innovation:
Innovation can be delegated. Not so. The drive to innovate begins at the top. If the CEO doesn’t protect and reward the process, it will fail.
Middle Management is the ally of innovation. Managers are not natural champions of innovation. They to reject new ideas in favor of efficiency.
Innovative people work for the money. Establishing a culture that embeds innovation in the organisation will attract and retain creative talent.
Innovation is a lucky accident. Successful innovation most often results from a disciplined process that sorts through many ideas.
The more open the innovation process, the less disciplined. Advances in collaborative tools, like social networking, are accelerating open innovation.
Businesses know how much innovation they need. Leaders must calculate their potential for inorganic growth to determine their need to innovate.
Innovation can’t be measured. Leadership needs to identify its ROII–Return on Innovation Investment.
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