You are on page 1of 2

B U S I N E S S P U L S E©

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

How the Survey is conducted


The Nicolet Bank Business Pulse© is a Quarterly Study of CEOs in NE Wisconsin (Brown,
Calumet, Door, Kewaunee, Manitowoc, Marinette, Oconto, Outagamie, Shawano, Winnebago
Counties). It is designed and implemented by IntellectualMarketing, LLC.
Participants include: 28% in manufacturing; 25% in services; 19% retail trade; 5% wholesale
trade; 6% finance, real estate, insurance; 5% in transportation, communications, utilities; 6% in
construction; 7% in other industries. 16% have fewer than 6 employees; 33% have 6-25; 19%
have 26-50; 6% 51-100; 18% 101-250; 2% 251-500; 3% 501-1,000; 2% have 1,001 or more.
Questions to Dr. David G. Wegge (920) 217-7738; david@intellectualmarketing.com

You might also like