Why Innovation Isn't Optional Anymore
The Eye of Innovation: A Glimpse into the Future of Technology[/caption]
Came across an interesting statistic recently on the positive financial impacts that companies that have an aligned innovation strategy on the bottom line. A case can be made that for adding no additional headcount, a company can increase its profit by 17% and increase revenue by 30%. If this is the case, then why aren’t more companies embracing innovation?
Companies with aligned innovation strategies see up to 17% profit growth and 30% value growth, according to McKinsey.[/caption]
Could the answer lie in the fact that companies are too focused on getting the annual budget approved each year and not taking time out to build in systematic innovation as part of the annual plan and monthly governance review process?
Systematic Innovation, as per the title, mandates companies to do things differently. It requires leadership to focus strategically on value realisation and implementing an innovation strategy. It also requires the company to take a hard look at its culture and determine if the existing culture will support an innovation mindset or if some changes are required. The above financial benefits do not come without some strategic actions by the leadership team, but I can think of no other intervention that a leadership team can make to not only deliver the above financial benefits but also, in doing so, help secure the future of the company, particularly with the current geopolitical backdrop.
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