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The State of Innovation: Survey of 677 Corporate Strategy Executives

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We surveyed 677 strategy leaders to discover how top companies fuel, manage, and measure innovation. See what high-performing companies have in common and all of our findings in the complete 31-page report at: cbi.vc/2HthC1T

Veröffentlicht in: Business
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The State of Innovation: Survey of 677 Corporate Strategy Executives

  1. 1. Survey of 677 Corporate Strategy Executives
  2. 2. To make the right decisions, you need to know the facts — and where and how to find them. ABOUT CB INSIGHTS At CB Insights, we believe that using facts over feelings is key to answering your most complex, strategic business questions. So we use machine intelligence to synthesize, analyze, and visualize millions of documents and give you fast, fact-based insights. We give companies the power to take control, make better decisions, and capitalize on change. STATE OF INNOVATION REPORT    2CB INSIGHTS
  3. 3. Corporate strategists talk the talk but don’t walk the walk. High performing companies are more likely to be first movers. Corporate innovation is slow. KEY FINDINGS 84.9% said innovation is very important, but 78% of respondents focus on incremental changes. 35% of high-performing respondents were first movers and 2x as likely to be risk-seeking. 60% of companies said it takes a year or longer to create new products. Corporate propensity for building over partnering or buying slows down innovation. PAGE 9 PAGE 15 PAGE 22 STATE OF INNOVATION REPORT    3CB INSIGHTS
  4. 4. Throughout this report, high-performing companies are defined as those in the top 15% of financial performance relative to primary competitors in the last 12 months. METHODOLOGY NOTE Moderate-performing companies are in the middle 45% of financial performance. Low-performing companies are in the bottom 40% of financial performance. HIGH PERFORMERS MODERATE PERFORMERS LOW PERFORMERS STATE OF INNOVATION REPORT    4CB INSIGHTS
  5. 5. We surveyed 677 strategy leaders. BUT FIRST, WHO DID WE TALK TO? STATE OF INNOVATION REPORT    5CB INSIGHTS
  6. 6. WHO WE SURVEYED 49.5% AMERICAS 37.6% EMEA 12.9% APAC $10B+ 38.4% $250M - $999M 13.1% $100M - $249M 7.1% $10M - $99M 14.1% $1B - $9B 27.3% SIZEREACH 66% are $1B in revenue or greaterGlobal STATE OF INNOVATION REPORT    6CB INSIGHTS
  7. 7. WHO WE SURVEYED SENIORITY FUNCTION INDUSTRY Financial Services Business Services Information Technology Life Sciences Insurance Industrial Manufacturing CPG Energy Utilities Retail Telecommunications Media Education Transportation Materials Consumer Services Other All major industries covered Strategy Gen. Mgmt Corp Dev. Other 56% 8% 10% 26% Due to rounding, not all percentage totals in this report are equal to 100%. All comparison calculations are made from total numbers, not rounded numbers. 8% C-level 9% SVP / EVP 13% VP 28% Director 25% Manager 17% Associate STATE OF INNOVATION REPORT    7CB INSIGHTS
  8. 8. While corporations worry about disruption, do they actually invest in preventing it? ANSWER = NO STATE OF INNOVATION REPORT    8CB INSIGHTS
  9. 9. There was broad agreement among the respondents. The more senior the survey respondent, the more importance they placed on innovation. Larger companies, especially those generating more than $10B in revenue, placed the highest importance on innovation. Companies care about innovation. SAID INNOVATION IS VERY IMPORTANT 84.9% STATE OF INNOVATION REPORT    9CB INSIGHTS
  10. 10. 41% of executives said their companies are extremely at risk or very at risk of disruption. When asked, “How at risk is your company of disruption by emerging technologies and companies?” less than 4% said they were not at risk. How at risk is your company of disruption by emerging technologies and companies? Top 5 industries at risk of disruption EXTREMELY AT RISK VERY AT RISK MODERATELY AT RISK SLIGHTLY AT RISK NOT AT RISK MEDIA ENTERTAINMENT1 TRANSPORTATION2 FINANCIAL SERVICES3 EDUCATION4 INSURANCE5 9% 32.4% 41.4% 13.4% 3.8% STATE OF INNOVATION REPORT    10CB INSIGHTS
  11. 11. Despite deep fear and talk of disruption, companies invest in the small stuff. STATE OF INNOVATION REPORT    11CB INSIGHTS
  12. 12. Companies focus on incremental innovation. Continuous innovation­— iterating on the status quo rather than on disruptive risks — is the primary type of innovation companies pursue. This includes enhancing existing products/services, cutting costs, and efforts focused on productivity. Generate revenue by enhancing existing products services1 Generate revenue by launching new products services2 Improve customer satisfaction3 Improve operational effectiveness / productivity4 Reduce costs for existing products and services5 RANK COMPANY INNOVATION GOALS 78% of innovation portfolios are allocated to continuous innovation instead of disruptive risks. Innovation goals reflect the incremental nature of innovation efforts, with only 1 out of 5 goals focusing on new products and services. STATE OF INNOVATION REPORT    12CB INSIGHTS
  13. 13. Part of the reason for the incremental nature of innovation is that the primary sources for innovation are existing customers and employees. Customers and employees are driving innovation. 1 Customers 2 3 Employees 6 7 8 9 10 Competitive intelligence 5 4 Suppliers / vendors Academic partners and/or scientific literature Industry analysts Accelerators incubators Corporate venture capital External ideation consultants Bankers VCs Top 10 Sources of Innovation STATE OF INNOVATION REPORT    13CB INSIGHTS
  14. 14. What are characteristics of highly innovative companies? ANSWER = FIRST-MOVERS, RISK-SEEKING, CEO OWNERSHIP STATE OF INNOVATION REPORT    14CB INSIGHTS
  15. 15. Survey of 677 Corporate Strategy Executives cbinsights.com info@cbinsights.com 212 292 3148 FOR THE FULL 31-PAGE REPORT DOWNLOAD BELOW DOWNLOAD

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