Growing your business: Innovation imperative

Three-quarters of US private companies are prioritising innovation, with growth as their top objective. Is your company among them?

In today’s world of emerging technologies, emerging markets, and emerging consumer demands, companies must emerge too — out of old molds and into new ones — if they are to survive and thrive. For some companies that means reinventing themselves. For others, it’s about seeking innovative ways to make their business newly relevant.

US private companies are keenly aware of this imperative. They don’t view innovation as a “nice to have” but instead see it as a critical means of staying in the game. No wonder that 75% of private-company chief executives we surveyed say they’re making innovation a priority. Within that group, roughly half the companies expect innovation to have a significant impact on the way they do business over the next few years.

As for the one-quarter of private companies that are forgoing innovation, they may come to embrace it yet. Sticking to business as usual in what remains a slow-growing US economy can be a distinct disadvantage for non-innovators when up against innovating peers, not to mention up against new, aggressive competitors from outside the United States — all of them vying for US customers. These are often the same competitors that US private companies face as they seek new customers abroad, including in fast-growth

Three-quarters of US private companies are prioritizing innovation, with growth as their top objective. Is your company among them markets where an emergent middle class is giving rise to new consumer demands. Success in those markets increasingly depends on taking novel approaches, such as reverse innovation, and leveraging rapidly evolving technologies. While such moves may appear risky to some private companies, the alternative is even riskier: standing still while innovative competitors race past.