How can companies boost innovation?
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![Page 1: How can companies boost innovation?](https://reader038.fdocuments.in/reader038/viewer/2022100603/55943da81a28abe95b8b4627/html5/thumbnails/1.jpg)
How can companies boost innovation?Not the way you’d think.
James Janega, [email protected]://jamesjanega.wordpress.com/
![Page 2: How can companies boost innovation?](https://reader038.fdocuments.in/reader038/viewer/2022100603/55943da81a28abe95b8b4627/html5/thumbnails/2.jpg)
Can you learn innovation?
In a 10 year longitudinal survey of 1000 global companies that spent the most on R&D, Strategy& found the vast majority felt they’d learned some important things about innovation:
• 27%: “We MASTERED THIS.”
• 32% got “MUCH” better after 10 years
• 44% got “better” after 10 years
• 73% found “room to improve,” would…
• Shift R&D mix from “incremental” to “breakthrough”
• Shift product R&D to service R&D
• 6% “got worse”
Signs point to “yes”
James Janega, [email protected]://jamesjanega.wordpress.com/
![Page 3: How can companies boost innovation?](https://reader038.fdocuments.in/reader038/viewer/2022100603/55943da81a28abe95b8b4627/html5/thumbnails/3.jpg)
Can you learn innovation?
Signs point to “yes”
• 27%: “We MASTERED THIS.”
• 32% got “MUCH” better after 10 years
• 44% got “better” after 10 years
• 73% found “room to improve,” would…
• Shift R&D mix from “incremental” to “breakthrough”
• Shift product R&D to service R&D
• 6% “got worse”
If so …
… how much better can you get?
Better Much Better Mastery Got Worse
James Janega, [email protected]://jamesjanega.wordpress.com/
![Page 4: How can companies boost innovation?](https://reader038.fdocuments.in/reader038/viewer/2022100603/55943da81a28abe95b8b4627/html5/thumbnails/4.jpg)
What’s the magic formula for innovation?
In a 10 year longitudinal survey of 1000 global companies that spent the most on R&D, Strategy& found the vast majority felt they’d learned some important things about innovation:
• Core strategies improve returns
• Align business and innovation strategies
• Key success factors drive results
• Gain insights into customer needs
• Stated
• Unstated
It’s not magic. But it isn’t chance, either.
James Janega, [email protected]://jamesjanega.wordpress.com/
![Page 5: How can companies boost innovation?](https://reader038.fdocuments.in/reader038/viewer/2022100603/55943da81a28abe95b8b4627/html5/thumbnails/5.jpg)
What’s the magic formula for innovation?
Build services out of products. Go big.
James Janega, [email protected]://jamesjanega.wordpress.com/
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What DOESN’T work?
Strategy& ran 10,000 Monte Carlo simulations on the 1000 R&D companies surveyed over 10 years, and found:
• R&D spend is not correlated to sustained financial success
• R&D spend is not correlated to sales growth
• R&D spend is not correlated to gross profit
• R&D spend is not correlated to enterprise profit
• R&D spend is not correlated to market cap value
• R&D spend is not correlated to shareholder return
Money is not enough.
James Janega, [email protected]://jamesjanega.wordpress.com/
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What DOESN’T work?R&D spend as the sole thrust for innovation DOESN’T work. In fact, the MORE companies spent that way, the WORSE they fared.
James Janega, [email protected]://jamesjanega.wordpress.com/
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How did top performers raise their game?
The solution involved five key steps taken simultaneously:
• Align the portfolio of innovation investments with customer needs and wants
• Develop and retain people with the right technical knowledge
• Understand new product- and service-related technology and trends
• Align innovative leaders with business leaders
• Pursue lean product/service development
By focusing on new capabilities and processes.
James Janega, [email protected]://jamesjanega.wordpress.com/
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Next: What does that mean for managers?Come join the conversation at jamesjanega.wordpress.com
James Janega, [email protected]://jamesjanega.wordpress.com/