Innovation is the lifeblood of progress and the driving force behind achieving sustainable development goals. In a business context, it’s the ability to conceive, develop, deliver, and scale new products, services, processes, and business models. Innovation can create value, enhance productivity, and foster competitiveness. The potential of innovation fuels hope. But all too often, that hope is dashed by ineffective execution. What does it take to spur innovation? “Efforts to focus an organization’s culture on innovation must be both systematic and intentional,” say McKinsey’s Matt Banholzer, Andy West.
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The Boston Consulting Group (BCG) has been identifying the world's most innovative companies for seventeen years, highlighting the importance of prioritising innovation, dedicating resources, and being "innovation ready" to build successful businesses. It’s latest report shows that: 🌍 Despite global challenges, innovation has surged to a top priority for businesses in 2023, with a focus on new product development, exploring new business models, and particularly on addressing climate and sustainability challenges 💷 Companies committed to innovation are significantly increasing their spending, allocating a substantial portion towards breakthrough innovations while also using strategic tools to enhance their innovation capabilities 💻 Digital innovation and the effective use of artificial intelligence (AI) are crucial, influencing how companies achieve significant innovation impacts and differentiate themselves from competitors. Most important of all, there is a strong correlation between superior innovation capabilities and performance, with innovation-leading companies not only outperforming the market but also setting new industry standards through continuous evolution and a strategic focus on long-term growth and sustainability.
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🚀 Our annual report on the state of innovation is out, and it’s an eye-opener! 🔍 Key Insights: -> Innovation and Growth: Back at the forefront, with 80% of companies ranking it as a top 3 priority across industries and geographies. -> Readiness Gap: Alarmingly, only 3% of companies are in the "ready zone" to truly succeed with their innovation efforts. -> Strategic Alignment: The biggest hurdle companies are facing, is in ensuring the full alignment of innovation efforts with their strategies -> Zombie Innovation: This misalignment leads to "zombie innovation" - projects that go through the motions but fail to create real impact. 🚀 With the resurgence of innovation and the rapid advancement of GenAI/AI technologies, now is the pivotal moment for executives invigorate their innovation systems including ambition, governance, processes, and talent.
Most Innovative Companies 2024: Innovation Systems Need a Reboot
bcg.com
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The latest BCG report highlights the same old paradox: when it comes to innovation, organizations don't walk the talk. While most claim it to be a priority, few actually manage it, track it, measure it, or staff it. Here's the reality: without a clear INNOVATION strategy, goals, and measures, even the best innovation systems underperform. Innovation isn’t just about activity and agility; it’s about aligning efforts and resources to the strategy. It also resonated with me that those who hesitate to integrate generative AI risk will fall further behind. Technology is reshaping innovation cycles and accelerating growth opportunities. As I read 20 years ago, companies need to look beyond short-term disruptions (or next year) and embrace a disciplined approach to scenario planning and portfolio management. Whether you're a startup or a Fortune 500 giant, the path forward demands a reset. Strategy is the foundation. Let’s innovate with purpose, clarity, and measurable impact. What’s your take? How is your organization ensuring innovation readiness in these challenging times? What is the role of innovation in your line of business? If you're interested in bringing innovation to the forefront of your organization's growth agenda, I would love to help. https://lnkd.in/eADkKCcJ
Most Innovative Companies 2024: Innovation Systems Need a Reboot
bcg.com
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🚀 Unlocking the Power of Positive-Sum Innovation! 🚀 Discover five key insights from the latest book by Chan Kim and Renee Mauborgne, Beyond Disruption. 🔑 Key Insights: - Innovation doesn't have to be disruptive. There's an alternative path called "nondisruptive creation" which generates new industries and growth without leaving a trail of failed companies and lost jobs. - Nondisruptive creation is a win-win. It's a positive-sum approach where business and society thrive together. - Highly relevant in the Fourth Industrial Revolution. As AI and smart machines replace human jobs, nondisruptive creation creates new industries and jobs without destroying existing ones. - Distinct roles and consequences. Unlike disruption, nondisruptive creation doesn’t aim at existing industries but solves new problems or creates opportunities beyond existing industry boundaries. - A systematic approach. The book presents three basic steps to identify, unlock, and secure nondisruptive opportunities. Are you ready to innovate without disrupting? Learn more: https://lnkd.in/gAMGg2nE
Five Key Insights for Positive-Sum Innovation
https://www.blueoceanstrategy.com
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🚀 Unlocking the Power of Positive-Sum Innovation! 🚀 Discover five key insights from the latest book by Chan Kim and Renee Mauborgne, Beyond Disruption. 🔑 Key Insights: - Innovation doesn't have to be disruptive. There's an alternative path called "nondisruptive creation" which generates new industries and growth without leaving a trail of failed companies and lost jobs. - Nondisruptive creation is a win-win. It's a positive-sum approach where business and society thrive together. - Highly relevant in the Fourth Industrial Revolution. As AI and smart machines replace human jobs, nondisruptive creation creates new industries and jobs without destroying existing ones. - Distinct roles and consequences. Unlike disruption, nondisruptive creation doesn’t aim at existing industries but solves new problems or creates opportunities beyond existing industry boundaries. - A systematic approach. The book presents three basic steps to identify, unlock, and secure nondisruptive opportunities. Are you ready to innovate without disrupting? Learn more: https://lnkd.in/gAMGg2nE
Five Key Insights for Positive-Sum Innovation
https://www.blueoceanstrategy.com
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One way to think about innovation capabilities is to treat it as an organizational muscle. You need to keep it in shape so that the company can quickly respond to disruption when it occurs: https://hubs.la/Q02BRVR10
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Why Innovation Across All Sectors is the Key to Staying Competitive In today’s fast-paced world, innovation isn’t limited to tech companies or startups—it’s a necessity for every sector. From agriculture to healthcare, education to retail, the ability to adapt, evolve, and create new solutions is what keeps businesses relevant and competitive. Here’s why innovation matters across industries: 1️⃣ Customer Expectations: People expect faster, smarter, and more personalized solutions. Staying ahead means meeting—and exceeding—those expectations. 2️⃣ Technological Shifts: AI, automation, and digital tools are transforming how we work and serve customers. To stay competitive, you need to adopt and adapt. 3️⃣ Market Disruptions: Whether it’s a global pandemic or supply chain issues, agility fueled by innovation helps businesses navigate uncertainty. Leaders play a vital role in driving innovation by fostering a culture of creativity, investing in R&D, and empowering teams to think outside the box. 💡 Remember, staying still in a fast-moving world isn’t an option. Innovation is your organization’s key to unlocking growth and future-proofing its success. How are you driving innovation in your field? Let’s discuss! 👇
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This report by BCG highlights that “companies have never placed a higher priority on innovation – yet they have never been as unready to deliver on their innovation aspirations.” Most businesses rank innovation as a top-3 priority. However, the vast majority (97%) of surveyed businesses are not ready to innovate. The biggest reasons: unclear strategic directions of their business/top management and rising costs (WACC & wages). For example, the article dives into a case study of Novo Nordisk and Eli Lilly – they’ve done alright judging by their 5-year total shareholder returns of +528 & +860%, respectively. GenAI is the elephant in the innovation room. Most executives view this as a top priority given the hype of how transformational it is expected to be. However, only 8% of companies in the survey have implemented AI at scale, as seen in the image.
Most Innovative Companies 2024: Innovation Systems Need a Reboot
bcg.com
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I find this to be a compelling depiction of innovation: a fusion of insight and value. To devise novel solutions for evolving requirements, we must possess profound insight and comprehension regarding the underlying reasons for the status quo. Then, we must envision the potential value we can create by addressing these issues through fresh perspectives.
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INNOVATION!!! Most of us in this contemporary world, when we come across the word "Innovation" we begin to visualise the overwhelming impact of technology in Organisational Development. Did you know that building an additional market segment for serving a consumer base not reached by current market players is also a great form of innovation? As we strategise on how to leverage on Innovation, let's not over emphasise the importance of technology and neglect segmentation since the two are the major types of innovation which can be distinguished as Sustaining Innovation and Disruptive Innovation respectively. Let's go for both Sustaining Innovation and Disruptive Innovation.
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