Tag Archives: study

Innovation 2010 – from BCG – now available

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.

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Insights – IBM 2010 Global CEO Study

IBM Has recently released its 2010 Global CEO Study. An excellent document that should be read by all, as it summarizes what is on the minds of CEOs around the globe, and, for those organizations that are looking to be more customer-centric (and that has to be every organization) understanding what the customer is thinking about is paramount.

Highlights of the executive summary are below, but I have also developed a PowerPoint summary of the document that I prepared as bedtime reading for all of us.

Today’s complexity is only expected to rise, and more than half of CEOs doubt their ability to manage it. Seventy-nine percent of CEOs anticipate even greater complexity ahead. However, one set of organizations — we call them “Standouts” — has turned increased complexity into financial advantage over the past five years.

Creativity is the most important leadership quality, according to CEOs. Standouts practice and encourage experimentation and innovation throughout their organizations. Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.

The most successful organizations co-create products and services with customers, and integrate customers into core processes. They are adopting new channels to engage and stay in tune with customers. By drawing more insight from the available data, successful CEOs make customer intimacy their number-one priority.

Better performers manage complexity on behalf of their organizations, customers and partners. They do so by simplifying operations and products, and increasing dexterity to change the way they work, access resources and enter markets around the world. Compared to other CEOs, dexterous leaders expect 20 percent more future revenue to come from new sources.

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