We are talking about a truly effective innovation management. It is the only survival strategy of our time. Therefore, organizations need great leaders. But many leaders fail in time. What can be done?
According to my experience and knowledge in the multi-industry; innovation is the crucial ingredient in all economic success, providing competitive growth for nations, creating more transient competitive advantages through more products and services for companies and more great careers for people.
Why Your Organization Needs Effective Innovation Management?
- More R&D spend does not mean more successful innovations. There is a negative correlation between them.
- More ideas don’t generate more innovations.
- Prefer fewer, bigger and more predictable successful innovations.
- Don’t stay on the chair. Copying time of a product is being less each year. First movers create 36 percent better stock return.
- Some innovative companies are launching new products and services month after month, year after year to create continuous transient competitive advantages. Look at Apple, Samsung, Unilever etc. They are spending 8 percent of annual sales to innovation. Why?
- Effective innovation management should be a priority of an organization and an obligation for national economic development.
- President Barack Obama mentioned “innovation” and “innovative” 11 times in his speech in 2010. This shows the strategic importance of the innovation management in today’s hypercompetitive World. Why?
- Companies who had high innovation effectiveness had a 76 percent product success while others created only 54 percent.
- Highly innovative companies achieved better sales (48 percent) and profits (49 percent) from new products while their less innovative peers had 21 percent in sales and 21 percent in profits. Look at the difference!
- According to the Boston Consulting Group study in 2010, innovative firms achieved a great advantage of the 12.4 increase in their three-year total shareholder returns compared to their competitors. Is this small value?
- 46 percent of the R&D spending gets wasted on new products according to the statistics.
- P&G had a 15 percent success in creating profit and revenue targets through new ideas. After 10 years, this ratio is 45 percent due to their improvements in innovation management. This shows their reconfiguring and improving ability in innovation management!
- We have to ask some questions to us if we want to create successful innovations. These are; A) What is the best structure and organizational design? B) How we execute a culture of risk aversion to the calculated risk-taking when we combine top-down and bottom-up innovation? C) Which categories we have to innovate (e.g., business model, product, service, new markets). D) How can we detect the real consumer insights, what are the ways? E) What are the best practices for launching a product or service for competitive growth and revenue returns?
Yusuf Tokdemir is a manufacturing operations excellence, innovation, productivity and performance expert, entrepreneur, chocolatier and keynote speaker who helps leaders and teams improve output, execute faster, and increase profitability in the food (food and beverages, infant foods, chocolates, bottled water and agro-foods) and the pharmaceutical industries.
If you want to get more innovation, productivity and profit; hire Yusuf to work with you or speak at your next meeting!
You can directly contact me by telephone.
T +90 533 3938268