Click here to load reader
Upload
james-janega
View
213
Download
4
Embed Size (px)
DESCRIPTION
How can companies improve their innovation track record? Here's a 5-step approach that the top 25% of corporate innovators follow.
Citation preview
How can companies boost innovation?Part 2: Some suggestions
James Janega, [email protected]://jamesjanega.wordpress.com/
Can companies boost innovation?
Money doesn’t buy innovation.
• In the previous presentation, we learned that annual spend on R&D doesn’t correlate to improved R&D results.
• In fact, R&D spend as a sole facet of innovation efforts was negatively correlated to sales growth, gross profit or shareholder return.
So what gets you to the top 25%?
James Janega, [email protected]://jamesjanega.wordpress.com/
How can you improve your company’s innovation?
In a Strategy& 10-year longitudinal survey, the most innovative firms raised their innovation game by focusing on core innovation capabilities and processes. The most effective recommendations? Identify your CORE INNOVATION CAPABILITY:
It’s a path to:
• -- something customers need.
And is:
• -- something competitors can’t do.
Concentrate on a short, coherent list of innovation capabilities.
Don’t try to be good at everything.
James Janega, [email protected]://jamesjanega.wordpress.com/
How can you improve your company’s innovation?
In a Strategy& 10-year longitudinal survey of 1000 global companies, the most innovative firms had raised their innovation game by focusing on core innovation capabilities and processes. The most effective recommendations?
• Align your innovation portfolio with customer needs and wants
• Develop and retain people with the right technical knowledge
• Understand the technology and trends related to new products and services
• Align innovation leaders with business leaders
• Pursue lean product development
Focus on two areas: Capabilities and Processes
James Janega, [email protected]://jamesjanega.wordpress.com/
How can you improve your company’s innovation?
In a Strategy& 10-year longitudinal survey, the most innovative firms raised their innovation game by focusing on core innovation capabilities and processes. The most effective recommendations?
Capabilities and Processes:
1) What do customers want?
2) What are your competitors’ core competencies in new product development?
Go all Blue Ocean on them.
3) Apply these:
1) Align your innovations to customers
Focus on changes in market and demand.
2) Track product/service technology and trends
3) Hire subject matter experts you need
4) Get innovation team and business leaders talking
“The business side knows what it’s going to get, and the R&D side knows what it has to work on.” – Oliver Nussli, Nestle.
5) Shorten the product development process; implement “agile inspiration”
Understand the implications of customer desires, competitor abilities, and company strengths.
James Janega, [email protected]://jamesjanega.wordpress.com/
Can companies boost innovation?
They’re doing it.
• 66%: “We’re aligning business and innovation strategies.”
• Conversations lead to alliances, lead to formal arrangements, lead to repeatable results.
• 75% “We understand our customers in much more detail than we did 10 years ago.”
Here’s how …
Aligned
Not aligned
… we aligned business and innovation strategies.
More
About the same
… we understand more about our customers.
James Janega, [email protected]://jamesjanega.wordpress.com/
Returns from improved customer insights
1 1 1
1.65
2
3
0
0.5
1
1.5
2
2.5
3
3.5
Shareholder Returns Return on Assets Operating Income
Axis Title
Indirect Customer Insights Direct Customer Insights
James Janega, [email protected]://jamesjanega.wordpress.com/
In the next installment: R&D approaches for three types of corporate innovators
• Firms that benefit from superior customer insights
• Firms that benefit from superior incremental innovation processes
• Firms that benefit from internal technical capabilities
• Previous installment here: http://jamesjanega.wordpress.com/2014/11/12/how-can-companies-boost-innovation/
James Janega, [email protected]://jamesjanega.wordpress.com/