Just 3% of organizations are in the 'ready Zone' of innovation with Talent and Culture readiness having declined drastically since 2022 !

?? Just 3% of companies today qualify as "Innovation ready"

?? 83% of companies seeing innovation as a top-three priority, but only 3% ready to translate their priorities to results.

? Too many organizations lack direction and strategy in their innovation efforts

?? Since 2022, innovation readiness has plummeted, with just 3% of companies in the ready zone today

?? 86% of innovators are experimenting with GenAI to at least some degree, ready innovators are moving out ahead, according to a new interesting research published by 波士顿谘询公司 using data from a survey of more than 1000 employees.

?Innovation is the top priority of companies

Researchers noticed that a record 83% employees reported that their companies rank innovation among their top three areas of focus.

?Innovation Readiness is down

Researchers found that only 3% of companies are in the ready zone of innovation today and this percentage has plummeted since 2021.

?? BCG researchers measured readiness using BCG’s proprietary Innovation-to-Impact benchmark tool (i2i by BCG), which evaluates a company’s innovation maturity along ten dimensions.

The slumps were particularly strong across the seven i2i dimensions that focus on how the organization nurtures ideas and guides them through development to market:

1?? Ambition. Are there specific and aspirational goals linked to strategy and value creation?

2?? Domains. Do we focus on a limited number of attractive innovation domains where we have a right to win?

3?? Governance. Are people and budgets aligned with priorities?

4?? Portfolio and Performance Management. Is the portfolio rigorously managed, and are innovation decisions and compensation linked to strategy-aligned KPIs?

5?? Organization and Ecosystems. Is innovation championed by the C-suite, and are there fit-for-purpose innovation teams/vehicles for different types of innovation and different time frames?

6?? Talent and Culture. Do we have a culture of innovation, and is innovation seen as a career accelerator?

7?? Idea to Impact. Do we have ideation methods that can “see around corners” and processes to explore and scale ideas?

?GenAI as an Innovation Accelerator

Researchers found that nearly all companies are experimenting with GenAI for innovation, but most are in the early stages of their journey.

Also, most organizations are adopting GenAI to some degree. While just 8% are now applying it at scale, over one-quarter have implemented it in select applications, and over half reported they are experimenting with it in limited areas.

Researchers conclude that GenAI has huge potential to transform the innovation process as well as to enable new products, services, and business models.

?? Finally researchers provide and identify three broad value plays that all companies should pursue regarding GenAI:

?? Deploy. This is where nearly every organization begins, focusing on quick wins using off-the-shelf GenAI tools to boost productivity and build experience either as one-offs or for a specific, narrow organization-wide use case.

?? Reshape. In this value play, companies rethink critical internal functions through the GenAI lens to drive improvements in quality, speed, and efficiency

?? Invent. Companies can leverage GenAI to drive value creation by enabling new products, services, and business models and enhancing the attractiveness of existing ones.

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This interesting BCG research using data from 2022 on the innovation capacity of companies demonstrates that leaders are still very far from optimal innovation maturity. It is quite worrying that less than 5% of organizations are prepared to innovate in their area of expertise despite their leaders wanting to prioritize it. Maximum effort must be made to close this gap, especially in talent and the culture of innovation.

Thank you ?? 波士顿谘询公司 researchers team for these insightful findings: Justin Manly Michael Ringel ? Amy MacDougall (Hurwitz), Ph.D. Johann Harnoss Jake Wolke-Perten Wendi Backler Ketil Gjerstad Ryoji Kimura Beth Viner

Dave Ulrich

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