Highlights from the Boston Consulting Group’s report “ Innovation 2008: Is the Tide Turning” which was produced in conjunction with “Measuring Innovation 2008: Squandered Opportunities” – See other blog post

=====
Click on attachment below to download the full report.

=====

Here are some key points from the report that I think are relevant for innovation practitioners

“If you plan on remaining a going concern, you need to be able to successfully innovate”

• Innovation remains at the top of most companies agenda’s but lack of return on Innovation (ROI) may be taking a toll on companies willingness to spend.
• The biggest factors driving down the ROI is

1. Lengthy development times
2.  Risk-averse corporate culture
3. Difficulty selecting the right ideas to commercial
4. Lack of internal co-ordination.

• Innovation leading to new products and service for existing customers is seen as most critical for success (89%) rather than “new-to-the-world” innovations. (66%)
• There is a direct relationship between success at innovation and stock market performance  - globally innovators outperform their peers and “if you are an investor, you’d do well to seek out innovative companies.

Capabilities that are critical to innovation success:

• Developing a deep understanding of customers and their preferences
• Partnering effectively with suppliers and others for new ideas
• Ensuring executive-level sponsorship of projects
• Enforcing timelines and milestones
• Earmarking sufficient funds for projects
• Moving quickly from idea generation to initial market entry
• Balancing risks, time frames and returns across an entire portfolio of projects
• Fostering a corporate culture that promotes innovation