With the global economic environment becoming increasingly competitive, and with CEOs somewhat uncertain about the future, many CEOs and Business Owners are looking to Innovation as a key to success.
With the global economic environment becoming increasingly competitive, and with CEOs somewhat uncertain about the future, many CEOs and Business Owners are looking to Innovation as a key to success.
With the global economic environment becoming increasingly competitive, and with CEOs somewhat uncertain about the future, many CEOs and Business Owners are looking to Innovation as a key to success.
With the global economic Fifty-three percent of CEOs in NEWi
environment becoming increasingly say they are “cutting edge” leaders of competitive, and with CEOs innovation; 35% are followers; 12% somewhat uncertain about the do not do any innovation. future, many CEOs and Business When asked to what extent their Owners are looking to Innovation organization had engaged in as a key to success. innovation in the past year, the most CEOs: When Business Week (3.26.07) named “The Business Week Fifty,” significant had taken place in internal operations/core processes (27% say (the 50 best performing companies), Significant Innovation); followed Innovation they indicated that the top by creating new services (25% companies were “...rewriting the Significant); creating new products Imperative rules in their industries.” (18% Significant) and changing the structure or financial model of In other words, Innovation. their business (14% Significant). IBM Global Business Services released While it appears that a fair amount of the results of its Global CEO Study - innovation is happening in NEWi, it and announced that the economic is also interesting to note that nearly future depends on expanding the a quarter (24%) of the organizations innovation horizon. indicate that they have not done The Nicolet Bank Business Pulse any innovation in the area of new sought to determine the status of product development. Innovation in NEWi in its most recent study of CEOs and Business Is your organization a Owners. From our results, it appears cutting edge innovator, that Innovation is an Imperative a follower in innovation or in NEWi! do no innovation? Lead, Follow or get out of the Way CEOs were first asked how they would describe their organization. Did they see it as a “cutting edge” Follower innovative organization; a leader 35% in creating innovative products, Cutting Edge services or processes? Or, are they 53% more a “follower” of innovation - No letting others take the lead and Innovation then replicating the innovations 12% that seem likely to be successful? Or, do they not do any innovation?
Executive Summary Part One:
From Data Taken in April/May 2007
“I’m not getting information; I'm not managing.”
John Torinus, President & CEO — Serigraph, Inc Improving internal operations - Sixty-nine percent made Organizations in NEWi compare or core processes - is basically a improvements to current product/ favorably with organizations competitive efficiency strategy. In service; 57% utilized electronic around the world on the subject of the short run, greater efficiencies channels to reach customers; innovation. For its worldwide study can significantly improve the 56% created a new marketing on innovation, IBM interviewed bottom line for a business. In the strategy; 41% created a new sales 765 CEOs of all “stripes” across long run, improved efficiencies strategy; 38% have achieved the globe. Organizations in NEWi enhance competitiveness and can greater penetration in current appear to be somewhat more be the foundation for strategically markets; 37% entered new engaged in improving core building the business in a highly geographic markets. processes (62% of NEWi CEOs competitive environment. compared to a little more than As organizations become more 40% for CEOs outside NEWi), and In terms of specific Internal efficient through operational making improvements to current Operation and Core Process innovation, new products and new products/service (69% in NEWi Innovation, 62% of the services, they also need to consider and just under 40% outside). organizations have been engaged changes in the basic business Organizations outside NEWi are in innovation to improve core model. With business changing more likely to be engaged in processes; 58% used information at breakneck speed, it is often the innovative changes to their technology to automate some case that a substantial portion of business model (2/3rds compared processes within their organization; a businesses revenue is being to just under half here). 53% improved how they interact generated by a product or service with customers; 45% applied a that may not exist in one or two Creativity and innovation are key new technique or technology to years. Witness the changes that elements for NEWi businesses to a core process; 40% reduced the Eastman Kodak had to adjust to, remain competitive in a global complexity of a core process. or that the recording industry is economy. It appears they are on currently adjusting to as the the right Innovation track. Part In some sectors of the economy, world went digital! Two of Innovation Imperative consumer goods in particular, will follow in the next issue of product innovation is the lifeblood In NEWi, fewer organizations The Business News. of an organization. Consumer appear to be engaged in innovation product companies that don’t to their business model. Forty- produce new, innovative products nine percent changed their will be left in the dust by organizational structure; 45% innovative companies that entered into strategic partnerships; create demand with new products. 27% used alternative financing CEOs were asked what types of models; 24% say they outsourced innovations in new products/ some aspect of their operations; services and marketing strategies 16% divested segments of their they had initiated in the past year. organization.
Sources/Resources:
“Forces Shaping the Business Environment” http://www.mckinseyquarterly.com/article_page.aspx?ar=1754
“Reinventing Innovation at Consumer Goods Companies” http://www.mckinseyquarterly.com/article_abstract.aspx?ar=1870&L2=21&L3=35
“Expanding the Innovation Horizon” http://www-900.ibm.com/cn/services/bcs/iibv/summarypdf/Global_CEO_Study_Executive_Summ_2006_EN.pdf