The Boston Consulting Group has recently released their seventh annual global survey of senior executives on their innovation practices. It covers the full suite of activities in turning ideas into financial returns, including such issues as portfolio and life-cycle management, organisational alignment, and demands on leaders. It discussed what works and what doesn’t and the actions companies are taking to make innovation happen. Further, the report offers pragmatic advice for individuals who want to make a difference in their organisation.
Key findings include:
- Companies have recommitted to pursuing innovation in 2010, pushing it to the top of their priority list, planning to boost their innovation spending. Seventy-two percent of respondents said their company considers it a top-three priority, versus 64 percent in 2009. Sixty one percent of respondents (versus 58 percent in 2008) said their company plans to boost spending
- A new world order in innovation is taking hold, one in which rapidly developing economies, led by China, India and Brazil, will increasingly assume more prominent positions
- Companies’ satisfaction with their return on innovation spending continues to edge higher – but remains relatively low. Fifty-five percent of respondents said their company is satisfied, versus 43 percent in 2008 and 52 percent in 2009
- Reflecting lingering caution about the economy, companies continue to ramp up their emphasis on innovation geared toward minor improvements to existing products and services, as opposed to, for example, innovation targeting the launch of new products
- Executives identify a risk-averse corporate culture and lengthy product development times as the two biggest factors holding down the return on their innovation spending
- The majority of companies are dissatisfied with their innovation measurement practices. Only 41 percent of respondents said their company is measuring effectively
- For the fourth straight year, respondents ranked Apple and Google the two most innovative companies, with Apple the hands-down winner
- Less than half of survey respondents believe that the US companies will remain the most innovative over the next five years
A full copy of the report can be obtained here.