Welcome!

News Feed Item

Innovation Roadblocks Plague Companies, but the Problem Has Little to Do With Ideas or Funding, Executives Say in Survey

The Biggest Challenge to Innovation -- the Key to Sustainable Growth -- Is the Process of Getting Ideas to Market, According to Innosight Research

LEXINGTON, MA -- (Marketwired) -- 07/09/14 -- Executives voice significant concerns about their companies' ability to innovate to meet the demands of the future -- and they say the problem is not a lack of good ideas or money, but figuring out how to put them to work. That's according to a new survey of 800 executives in 20 industries by strategy and innovation consulting firm Innosight.

Only 11% of executives said the biggest innovation challenge they face is developing ideas, and only 14% said it's money. The main bottlenecks are commercializing ideas (19.5%) and scaling them within the market (22%). The survey results underscore that innovation blockage is a critical problem: Eighty-five percent of executives agreed that their organization will need to transform itself -- i.e., change their core offering or business model -- in response to rapidly changing markets. Yet fewer than half (42%) said their company is prepared for transformation within a five- to 10-year timeframe.

"The ability to innovate reliably and repeatedly is critical to achieving sustainable growth. What we've found working with companies throughout the innovation lifecycle -- and it's consistent with the survey results -- is that they really struggle with the critical, do-or-die first phase when an idea must move from paper into the market," said Innosight Managing Partner Scott D. Anthony, author of The First Mile: A Launch Guide for Getting Great Ideas into the Market (Harvard Business Review Press, May 2014).

Companies Can Break the Bottleneck by Giving up on Certainty and Embracing Trial-and-Error

"How a company navigates the 'first mile' of innovation determines whether an idea takes off or fails, potentially taking the entire company with it," said Anthony. "Most businesses run on a principle of maximizing certainty and minimizing mistakes -- but that's debilitating during the first mile. The innovation process is rife with uncertainty, mistakes and failure. In reality, mistakes and failure are both necessary and invaluable in pointing the way toward success -- if you're properly prepared and know how to handle them."

He argues that most organizations are short on the right innovation skills and perspectives, including a willingness to experiment for its own sake; an ability to welcome and learn from the unexpected; and comfort with rapid course corrections. Most of today's top executives and managers don't have these skills because they have spent much of their careers in environments characterized by certainty and stability.

During innovation's first mile, leaders should, according to Anthony, favor action over analysis to avoid "analysis paralysis"; encourage smart risk taking and avoid penalizing failure; learn how and when to disengage from an idea (to avoid the plague of "zombie projects"); and accelerate and increase connections to external experts, customers and employees.

For more information on the survey findings and/or a conversation with Scott Anthony, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at 212-255-8386 or [email protected].

METHODOLOGY
Innosight surveyed 823 Strategy & Innovation subscribers online in January 2014 and fielded approximately 100 open-ended responses. Sixty percent of respondents were in senior management (with the largest category being CEO/Managing Director). Fully 53% were in strategy or general management roles, and 15% were in marketing or product development. Twenty-three percent of respondents worked in organizations with revenues exceeding US $1 billion, while 19% worked in organizations with revenues between $50 million and $1 billion. Respondents spanned more than 20 industries, including financials and insurance, health care, telecommunications, and consumer goods.

ABOUT SCOTT D. ANTHONY
Scott D. Anthony is the Managing Partner of Innosight. Based in the firm's Singapore office, he leads its expansion into the Asia-Pacific region as well as its venture capital activities (Innosight Ventures). He has worked with clients ranging from national governments to companies in industries as diverse as healthcare, telecommunications, consumer products and software. He is the author of The Little Black Book of Innovation (Harvard Business Review Press, January 2012) and The Silver Lining (Harvard Business Review Press, 2009). He is the co-author with Clayton Christensen of Seeing What's Next (Harvard Business Review Press, 2004), The Innovator's Guide to Growth (Harvard Business Review Press, 2008) and Building a Growth Factory (Harvard Business Review Press, 2012).

ABOUT INNOSIGHT
Innosight is a strategy and innovation consulting firm that helps organizations navigate disruptive change and manage strategic transformation. We work with enterprise leaders to identify new growth opportunities, accelerate innovation initiatives, and build capabilities. Innosight is based in Lexington, MA, with offices in Singapore and Lausanne, Switzerland. www.innosight.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions with...
"What is the next step in the evolution of IoT systems? The answer is data, information, which is a radical shift from assets, from things to input for decision making," stated Michael Minkevich, VP of Technology Services at Luxoft, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.