Innovation is high on the agenda
14th Annual Global CEO Survey
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Innovation is high on the agenda for 2011 in virtually all industries. The accelerating pace of change is a major reason why CEOs polled for PwC’s 14th Annual Global CEO Survey believe innovation is now as important to growing their businesses as expanding in existing markets.
So how do successful innovators create the processes, structures and practices to move the handful of viable ideas all the way to implementation? We'll begin by breaking down some of the misconceptions surrounding innovation.
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PwC points of view On innovation
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John Sviokla, PwC Business Leader for Strategy & Innovation and Christopher Wasden, PwC Global Healthcare Innovation Leader, expert on the barriers to new growth.
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Common Innovation misconceptions
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Responsibility for innovation can be delegated
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Senior & midlevel managers are the natural allies of innovation
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Innovative talent works for the money
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Innovation results from lucky accidents
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The more open the innovation process, the less disciplined
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Businesses know how much innovation they need
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Innovation can't be measured
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Responsibility for innovation can be delegated
Not so. The drive to innovate begins at the top. If the CEO doesn’t reward innovation, protect the process or change internal relationships to foster innovation, the effort will fail.
Senior and midlevel managers are the natural allies of innovation
Managers may not be the enemies of innovation, but they're not champions either. Their focus on improving operating profits encourages them to reject new ideas that detract from these efficiency improvements.
Innovative talent works for the money
Pay packages alone won’t light a fire under your innovators. Measures to motivate innovative employees should also include non-monetary rewards such as recognition and autonomy.
Innovation results from lucky accidents
If only it were so. Innovative companies actually work in structures and apply practices that are designed specifically to deliver innovations successfully and quickly. The innovation discipline increases the odds of success with every shot on goal.
The more open the innovation process, the less disciplined
There are significant variations to the open innovation model. Businesses can shelter their internal innovations without shutting out external contributors.
Businesses know how much innovation they need
Business leaders need to ask themselves: How much growth does the firm need from innovation? This involves considering how much growth will be driven by existing products and services, and how much is required from new offerings, business models, processes, distribution and marketing strategies.
Innovation can't be measured
Innovation can and should be measured. Leadership needs to identify some ROII – return on innovation investment – measures. Innovation should face the same rigour as other areas, with the understanding that there are high levels of uncertainty and risk in the early phases.
