Innovation Investment is on the Increase
The importance of innovation to the lifeblood and future prosperity of companies is growing. A tough financial climate and the intensity of competition is boosting the value of ideas as currency.
A new survey by Boston Consulting Group (BCG), highlighted by CIO Insight reveals how organizations are more willing to invest dollars and resources in innovation endeavours.
Since 2005 BCG has been looking at the state of innovation within companies, allowing it to compare results over time. Each year, more than 1,500 senior executives from different industries and regions are surveyed.
Among the key findings of this year’s report are:
- 77% of executives rank innovation and product development as a top three priority.
- 70% indicate that their organization is committed to innovation. This is up from 60% in 2012.
- 67% of surveyed companies have cross-functional teams working on innovation projects, as opposed to 56% the previous year.
- 63% said that decision-making processes around their innovation efforts are clear. The percentage who said that in 2012 was 53%.
- 59% say sufficient budget and resources were allocated to their innovation efforts, as opposed to 52% last year.
The findings highlight a change in the emphasis now being placed on innovation. Previously, companies were content to focus on a few quality products and just periodically update them. While that approach still works for products with long life-cycles, it may not be enough to maintain a firm’s competitiveness. Allied to this is consumer expectation that now demands better and more innovative products to make their lives better.
For more details of the report, click here.
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