How Innovation Drives Profit: Stats You Need to Know.
Activ8 Training & Development
Experiential Learning & Development, Digital Training Solutions Provider, Leadership Development Experts
There has always been one facet of the business world that gets thrown around as a buzzword far more than the rest - 'innovation'. But what does innovation even mean?
Innovation is the act of rethinking your business processes to effectively create value. This can include, but is not limited to, transforming creative ideas into new, tangible solutions that drive up business growth, improving operational efficiency, meeting your customers' needs, and improving data-driven strategic decision-making.
Even if modern organizations don't innovate at the same efficacy as they would like to, it is still a very crucial aspect in today's business landscape.
According to research by McKinsey & Company, 80% of top executives think that their current business models are at risk of being disrupted in the next five years. Additionally, 84% of these executives also state that they understand the importance of innovation and its impact on their growth strategy. Accenture's research points to the same narrative - 84% of executives consider their future organizational success strongly dependent on implementing innovative strategies that align with modern needs.
A very recent study by IBM even shows us that organizations that neglected the implementation of open innovation have suffered a 12% lower revenue growth, and 75% of that group paused their innovation efforts altogether through the COVID-19 pandemic business recession, statistics that would make any executive cringe with disappointment.
So, innovation is clearly on the strategic agenda of most large-scale organizations, which makes sense considering research from top consultancies indicating that innovation is the leading cause of long-term economic growth, according to a report by the OECD.
How can organizations implement innovation? Whom do they include in the decision-making process of designing these innovative strategies, and how do they link to the macro picture of the organisation and the direction they want to take? These are just some of the questions leadership teams should ask to start the conversation.
References:
领英推荐
Sajid Hussain
Consultant | Activ8