How to outperform Innovative Competition

by einsteindiva.com

in Innovation

This is the sixth year Booz & Company Partner conduct their annual Global Innovation 1000 study. Past studies has consistently shown that there is no statistically significant correlation between financial performance and innovation spending, in terms of either total R&D dollars or R&D as a percentage of revenues

This year, Booz & Company Partner focused on finding which sets of innovation capabilities that are the most critical for success and to outperform the competition

“The results are clear: The most innovative companies outperformed their industry peers on three different indicators of financial success. Companies that are perceived to be highly innovative are clearly successful in creating new products and bringing them to market. Some spend more than others to accomplish this goal, but the real winners, financially speaking, are those companies, like Apple, Google, and 3M, that can innovate successfully without breaking the bank.(Booz & Company Partner, 2010, Issue 61)”

Companies in this study followed at least one of three innovation strategies: Need seeker, Market reader, or Technology driver. No matter which of the three innovation strategies they pursued, all the successful companies depended on a common set of critical innovation capabilities:

  • Ability to gain insights into customer needs
  • Understand the potential relevance of emerging technologies at an early stage
  • Engage actively with customers during product development to prove the validity of concepts
  • Use pilot users to roll out products carefully through commercialization

The study shows that. the most successful companies are those that focus on a particular, narrow set of common and distinct capabilities that enable them to better execute their chosen strategy.  Organizations that focused on a particular, narrow set of common and distinct capabilities that helped organizations to execute their chosen strategy, are those who where most successful and outperform the competition.. read more

Leave a Comment

Previous post:

Next post: