INNOVATION STATISTICS

Product Development Facts and Stats You Need to Know

There's no doubt that innovation is a critical driver of economic growth. Look at the most successful companies in the world today - they all have one thing in common: a culture of innovation.

But what does innovation mean? And what are the most critical innovation statistics that entrepreneurs and businesses need to know?

We can define innovation as creating new value or transforming existing value in its simplest form. We can do this by developing new products, services or processes or improving existing ones. And it's not just about developing groundbreaking new technologies - it can also be about improving customer experience, supply chain efficiency or marketing campaigns.

So now that we know what innovation is, let's take a look at some key innovation statistics that highlight its importance:

1 out of 5 products fails to meet the customer expectations

280 Group Challenges in Product Management Survey Results

A new product launch is always a crucial moment for a company. It can make or break a brand and determine whether a product is successful or not. Given the stakes, it's no surprise that so many products fail to meet customer expectations. Studies show that only one out of five products meets customer expectations. A well-performing product manager, a great product vision, and a solid launch are even more critical. The product manager is responsible for ensuring that the product meets customer needs and expectations. They need to have a deep understanding of the market and the competition. They also need to be able to create a vision for the product and align the team around it. Finally, the launch is also critical. A poor launch can doom a product before it even hits the shelves. On the other hand, a grand launch can help a product find its footing and succeed.

A fully optimised product manager could increase company profits by 34.2%

280 Group Challenges in Product Management Survey Results

A recent report by 280 Group found that a fully optimised product manager could increase company profits by 34.2%. The report studied a sample of 850 companies and found that those with product managers who were highly influential in their roles saw significantly higher profits than those who did not. The study found that the most successful product managers shared several common attributes, including strong strategic planning skills, the ability to communicate with stakeholders effectively, and a deep understanding of the needs of their customers. With the right mix of skills and experience, a product manager can be a powerful asset to any organisation. When it comes to driving profits, there is no one more essential to a company's success.

62%of high-growth companies plan to invest in technologies that lead to higher rates of innovation, compared to 54% of other companies

Accenture

65% of high-growth companies plan to collaborate with customers during the innovation process, compared to 54% of other companies

Accenture

49% of organisations struggle to learn from past mistakes

Accenture US Innovation Survey (2015)

According to the Accenture US Innovation Survey, nearly half of all organisations struggle to learn from their past mistakes. This can be a costly mistake, as failing to learn from mistakes can mean repeating them – often with even more costly consequences. There are a number of reasons why organisations may struggle to learn from their mistakes. One reason is that they lack a systematic way of capturing and sharing lessons learned. Another reason is that they fail to establish clear accountability for learning from mistakes. Without these two elements in place, it can be difficult for organisations to improve over time. Thankfully, there are a number of steps that organisations can take to overcome these challenges. By establish clear processes and procedures for learning from mistakes, and holding individuals accountable for following those procedures, organisations can start to close the gap between themselves and their more successful counterparts.

59% of organisations admit to missing crucial growth opportunities

Accenture US Innovation Survey (2015)

A recent survey by Accenture found that 59% of organisations admit to missing out on crucial growth opportunities. This figure is alarming, especially when considering the potential consequences of missed opportunities. In today's increasingly competitive business landscape, companies must be agile and quick to seize any advantages that come their way. Those that fail to do so run the risk of being left behind by their rivals. The Accenture survey highlights the importance of innovation in driving growth. In order to stay ahead of the curve, organisations need to continually invest in new ideas and technologies. Only by doing so will they be able to capitalise on new opportunities as they arise.

82% of organisations to run innovation in exactly the same way as they would go about achieving any incremental performance gain in their regular operations.

Accenture US Innovation Survey (2015)

Many organizations view innovation as a way to achieve quick and dramatic improvement. However, the reality is that most innovation happens incrementally, through small improvements made over time. In fact, according to a recent study, 82% of organizations run their innovation efforts in exactly the same way as they would go about achieving any other incremental performance gain in their regular operations. This approach may not always lead to groundbreaking results, but it can be an effective way to slowly and steadily improve your organization's overall performance. Moreover, it can help to create a culture of innovation that encourages employees to continuously look for ways to improve the status quo. While incremental innovation may not always make headlines, it can be a powerful tool for organizational success.

84% of executives considered their future success to be very or extremely dependent on innovation

Accenture US Innovation Survey (2015)

In a rapidly changing business landscape, it is more important than ever for companies to innovate in order to stay ahead of the competition. This was the finding of the Accenture 2015 US Innovation Survey, which found that 84% of executives considered their future success to be very or extremely dependent on innovation. In order to remain successful, companies must be willing to invest in new, innovative ideas and technologies. However, this investment must be strategic, as not all innovation will lead to success. By carefully evaluating opportunities and investing in those with the greatest potential, companies can ensure that they are making the most of their innovation efforts. In an increasingly competitive marketplace, those who fail to innovate will quickly find themselves left behind.

Nearly 30% of senior innovators are actively targeting AI in their innovation programs

BCG

A recent study found that nearly 30% of senior innovation executives actively target artificial intelligence in their innovation programs; this is a significant increase from previous years. It underscores the importance of AI in innovation performance. Innovation leaders know that AI can help to improve innovation strategy, speed up product development, and reduce costs. As a result, companies that are not already using AI in their innovation programs are at risk of falling behind. To stay competitive, enterprises must embrace AI and use it to drive innovation. Those who do will be well-positioned to win in the market.

Over 30% of senior innovators surveys expect AI to be a leading area of innovation in the next 3-5 years

BCG

A recent study of senior innovation executives found that over 30% expect artificial intelligence to be a leading area of innovation in the next 3-5 years; this is a significant increase from the past when only a handful of executives considered AI to be a top innovation priority. This change is manifold, but most executives cite the need to improve innovation performance and business strategy as the primary drivers. As businesses strive to become more agile and adaptive, they turn to AI to help them gain a competitive edge. In addition, the ever-increasing power and efficiency of AI technology are making it more accessible and affordable for businesses of all sizes. As a result, we can expect to see continued growth in AI innovation in the years to come.

20% of global executives say that a lack of marketing innovations is one of the biggest obstacles to innovation ROI

BCG Global Innovation Survey (2015)

Marketing innovations can provide a significant boost to a company's bottom line, but many executives are finding it difficult to translate these innovations into ROI. According to a recent survey, 20% of global executives cite a lack of marketing innovation as one of the biggest obstacles to innovation ROI. This is a troubling trend, as marketing innovations are often the key to unlocking growth in today's competitive marketplace. Executives must find ways to overcome this challenge and ensure that their companies are reaping the full benefits of marketing innovation.

There are several steps that executives can take to boost innovation ROI. First, they should make sure that they have a clear understanding of what marketing innovations are and how they can be applied to their business. Second, they should create a culture of innovation within their organization, encouraging employees to experiment and take risks. Finally, they should invest in the tools and resources necessary to support marketing innovation initiatives. By taking these steps, executives can ensure that their company is driving growth through marketing innovation.

22% of global executives say that not enough great ideas is one of the biggest obstacles to innovation ROI

BCG Global Innovation Survey (2015)

A recent study found that 22% of global executives say that not enough great ideas is one of the biggest obstacles to innovation ROI. This is a surprising finding, considering that many companies claim to have an abundance of great ideas. However, it seems that the issue is not with generating ideas, but with turning those ideas into successful innovations. In order to achieve a high return on investment from innovation, companies need to be able to identify which ideas have the greatest potential and then allocate resources accordingly. This can be a challenge, as it requires managers to make tough decisions about which projects to pursue and which to shelve. However, it is essential if companies want to realize the full potential of their innovation efforts.

25% of global executives say that a lack of coordination is one of the biggest obstacles to innovation ROI

BCG Global Innovation Survey (2015)

A lack of coordination is one of the biggest obstacles to innovation ROI, according to a survey of global executives. One-quarter of respondents said that poor coordination was a major obstacle to achieving a return on investment from innovation initiatives. The survey also found that a lack of communication and alignment among stakeholders was another major obstacle to innovation ROI. In order to overcome these obstacles, executives need to invest in tools and processes that will help them to better coordinate and communicate with all stakeholders. They also need to create an environment that is conducive to innovation, where everyone is encouraged to share their ideas and collaborate. Only by addressing these challenges head-on will companies be able to achieve the full potential of their innovation initiatives.

31% of global executives say that a risk-averse culture is one of the biggest obstacles to innovation ROI

BCG Global Innovation Survey (2015)

A recent study of global executives found that 31% believe that a risk-averse culture is one of the biggest obstacles to innovation ROI. This finding is not surprising, as many organizations struggle to strike the right balance between risk and reward. On one hand, companies need to be willing to take risks in order to spur innovation and generate new ideas. However, they also need to be mindful of the potential cost of failure. As a result, many organizations find themselves stuck in a cycle of stagnation, reluctant to take risks that could lead to either success or failure. In order to break out of this cycle, companies need to find ways to encourage employees to take calculated risks that have the potential to bring about real change. Only then will they be able to achieve the levels of innovation ROI that they are striving for.

32% of global executives say that selecting the right ideas to commercialise is one of the biggest obstacles to innovation ROI

BCG Global Innovation Survey (2015)

In today's business climate, innovation is more important than ever. With the ability to quickly copy and improve upon successful ideas, companies must constantly be on the lookout for new ways to stay ahead of the competition. However, coming up with new ideas is only half the battle. Executives also need to be able to identify which ideas are worth pursuing and which are likely to fail. This can be a difficult task, as there is often no way to know for sure how an idea will perform in the marketplace. As a result, many executives err on the side of caution, only investing in ideas that are proven and safe. While this approach may lead to short-term success, it can ultimately stifle innovation and limit a company's long-term growth potential. To avoid this trap, executives need to be willing to take risks and invest in unproven ideas. While there is no guarantee of success, these bold investments are essential for driving innovation and achieving long-term success.

42% of global innovation executives say development times are too long to generate ROI

BCG Global Innovation Survey (2015)

In a recent survey of global innovation executives, 42% said that their development times were too long to generate a return on investment. This is a significant problem, as it can lead to projects being cancelled or shelved before they have a chance to reach fruition. There are a number of reasons why this might be the case. One is that organizations may be trying to do too much at once, leading to a lack of focus and coordination. Another is that there may be unrealistic expectations about what can be achieved in a given time frame. Finally, it is also possible that the resources allocated to innovation projects are insufficient. Whatever the cause, it is clear that development times need to be shortened if organizations are to realize the full value of their innovation efforts.

The best innovators only base project approval on future revenues 22% of the time.

BCG Global Innovation Survey (2017)

The best innovators are not basing their approval of projects on future revenues 22% of the time, according to BCG Global Innovation Survey done in 2017. This goes to show that they are looking at other factors when it comes to approving a project. With this in mind, we can see that future revenues is not the only thing that these innovators are taking into account. They are also considering other aspects that will make or break a project. This survey provides us with valuable insight into how the best innovators think, and we can use this information to improve our own innovation processes. In the end, it is important to remember that there is no one-size-fits-all approach to innovation, and we must always be adaptable and open to new ideas.

The best innovators use an ambidextrous organisational structure 77% of the time.

BCG Global Innovation Survey (2017)

According to a recent study by the Boston Consulting Group (BCG), the best innovators use an ambidextrous organisational structure 77% of the time. In an ambidextrous organisation, there is a clear separation between the "core" business and the "innovation" business. This allows the organisation to maintain a focus on its core competencies while also encouraging new thinking and creativity. The study found that organisations with an ambidextrous structure were more than twice as likely to be in the top quartile of performers in their industries. They were also more than three times as likely to have launched a successful new product or service in the past three years. Given these findings, it is clear that an ambidextrous organisational structure is a key ingredient for innovation success.

The best innovators use open collaboration 77% of the time.

BCG Global Innovation Survey (2017)

The BCG Global Innovation Survey is one of the most comprehensive and authoritative studies of corporate innovation. In 2017, the survey found that the best innovators use open collaboration 77% of the time. This finding has important implications for companies seeking to improve their innovation performance.

Open collaboration is a key driver of innovation. By working with others, companies can tap into a wider range of ideas and perspectives, which can lead to more breakthrough innovations. Open collaboration also helps companies to build deeper relationships with their ecosystem partners, which can provide essential resources and knowledge.

Companies that want to improve their innovation performance should therefore focus on increasing their level of open collaboration. This may require investments in collaborative technologies and infrastructure, but the benefits are likely to far outweigh the costs.

Innovative organisations have 11% more revenue

Booz & Co

A recent report by Booz & Co. (now Strategy&) found that the world’s most innovative organisations have 11% more revenue than their less creative counterparts. The report, titled the Global Innovation 1000, surveyed executives worldwide to identify the trends and behaviours that distinguish the most innovative companies. The findings suggest that innovation is a crucial driver of financial success. Companies must invest in innovation to stay ahead of the competition. While some organisations are naturally more innovative than others, there are several ways in which all companies can boost their innovation potential, for example, by encouraging employees to think outside the box and giving them the freedom to experiment. Additionally, companies should create an environment that fosters risk-taking and collaboration between different departments. By following these steps, businesses can increase their chances of generating new ideas and turning them into successful products and services.

Innovative organisations have 22% more EBITDA growth

Booz & Co

The Booz & Co. (now Strategy&) 2011 Global Innovation 1000 report found that the most innovative organisations have 22% more EBITDA growth than their less creative counterparts. The report looked at various factors, including R&D spending, the number of patents filed, and the percentage of revenues from new products, to identify which companies are the most innovative. Not surprisingly, many of the most innovative companies are in the technology sector, including Google, Apple, and Microsoft. However, several traditional companies are making significant investments in innovation, such as GE and Procter & Gamble. The report underscores the importance of innovation for companies looking to grow their businesses. The report offers several recommendations for organisations that want to improve their innovation performance, including increasing R&D spending and investing in employee training. By following these recommendations, companies can position themselves for continued growth in the years ahead.

30% of Need Seeker organisations have highly aligned business and innovation strategies

Booz & Co Global Innovation 1000 Report

As the world of business becomes increasingly complex, the need for organisations to align their business and innovation strategies becomes more important. According to a recent study, 30% of organisations classified as "need seekers" have highly aligned business and innovation strategies; this means that they can identify and respond to existing and emerging needs in the market. Having a clear and aligned strategy is essential for the success of these organisations. The ability to identify and meet customer needs sets these organisations apart from their competitors. With a clear understanding of their customers' needs, they can develop products and services that address those needs. As a result, they can remain competitive in an ever-changing marketplace.

60% of the top 10 global innovators are "Need Seekers"

Booz & Co Global Innovation 1000 Report

It is more important than ever for businesses to innovate to stay ahead of the competition in today's rapidly changing world. According to a recent study, 60% of the top 10 global innovators are "need seekers."; this means that they are constantly on the lookout for new ways to improve existing products and services and develop entirely new ones. To be successful, businesses must be proactive in identifying both existing and emerging needs. They must then design innovative solutions that address these needs creatively and efficiently. By remaining "need seekers," businesses can ensure that they stay at the forefront of the innovation game.

Only 8% of "Market Reader" organisations have highly aligned business and innovation strategies

Booz & Co Global Innovation 1000 Report

According to a recent study, only 8% of business executives feel that their organisation's business and innovation strategies are highly aligned; this means that for the vast majority of organisations, there is a disconnect between the two key areas; this can have many consequences, including wasted resources, missed opportunities, and poor decision-making. To be successful, organisations need to ensure that their business and innovation strategies work together towards common goals. Only then will they be able to maximise their chances of success.

Only 8% of "Tech Driver" organisations have highly aligned business and innovation strategies

Booz & Co Global Innovation 1000 Report

In today's business climate, it's more important than ever for companies to have a clear and aligned business and innovation strategy. However, according to a recent study, only 8% of "Tech Driver" organisations (defined as companies that rely heavily on technology to drive business growth) have a high alignment between their business and innovation strategies. This lack of alignment can lead to issues such as developing products that don't meet customer needs or a failure to invest in new technologies that could provide a competitive advantage. For business executives, it's essential to ensure alignment between the business and innovation strategies to avoid these pitfalls and drive growth.

Organisations with both highly aligned business & innovation strategies, as well as a pro-innovation culture, have 30% higher growth on their enterprise's value.

Booz & Co Global Innovation 1000 Report

It's no secret that innovation is essential for businesses to stay competitive and grow. However, it's not always easy to encourage innovation within an organisation. A recent study found that organisations with highly aligned business and innovation strategies and a pro-innovation culture have a 30% higher growth in their enterprise's value. In other words, innovation must be baked into the organisation's DNA to be genuinely effective; this means having a straightforward innovation process in place and creating an environment conducive to innovation. When employees feel like they can take risks and experiment without fear of failure, they are more likely to develop game-changing ideas. Therefore, organisations need to create a culture of innovation if they want to reap the rewards of increased growth.

The top 1000 companies account for 40% of global R&D expenditure.

Booz & Co Global Innovation 1000 Report

In 2018, the top 1000 companies spent a total of $858 billion on R&D efforts. This amount accounts for approximately 40% of the R&D spending in the world. Thus, the total R&D spending around the world was in the region of $2 trillion in 2018. These figures highlight the importance that businesses place on R&D spending in order to maintain a competitive edge. The majority of R&D spending is focused on developing new products and technologies, which can help to improve productivity and efficiency. In addition, R&D can also help to reduce costs and improve customer satisfaction. As such, it is clear that R&D plays a vital role in the success of businesses worldwide.

Businesses that consistently invest in R&D are 13% more productive than firms that do not invest in R&D and 9% more than firms which occasionally invest in R&D

Department for Business, Energy & Industrial Strategy, Innovation Report (2014)

Research and development is essential for businesses to maintain a competitive edge. It allows companies to bring new products and services to market, improving productivity and expanding their customer base. R&D also helps businesses improve existing products and processes, making them more efficient and reducing costs. While the upfront investment in R&D can be significant, the long-term benefits are clear. Businesses that consistently invest in R&D are13% more productive than those that do not and 9% more productive than firms which only occasionally invest. This higher level of productivity provides a strong foundation for business growth, enabling firms to increase market share, create jobs, and generate wealth.

12% of UK firms, engaging in some form of innovation activity, consider UK regulations a barrier to innovation

Department for Business, Energy & Industrial Strategy, Innovation Report (2019)

The 2016-2018 UK Innovation Survey reports that 12% of UK firms, engaging in some form of innovation activity, consider UK regulations a barrier to innovation. Yet regulation can stimulate new ideas, provide certainty to reduce investment risk, create consumer confidence, steer the development of new products, and enable the rapid but safe adoption of new technologies. 32% of innovative businesses reported that the meeting of regulatory requirements was of ‘high’ importance to their decision to innovate. In other words, regulations can actually be a powerful driver of innovation.

So why do some businesses view regulations as a barrier? It could be because they don’t understand how regulations can actually help to stimulate new ideas and encourage innovation. Or it could be because they’re encountering obstacles in the regulatory process itself. Whatever the reason, it’s important to remember that regulations can be a powerful force for good when it comes to innovation.

In the last 100 years alone, GDP per person in the UK has increased by 340%

Department for Business, Energy & Industrial Strategy, Innovation Strategy (2021)

In the last 100 years, GDP per person in the UK has increased by 340%. A lot of this can be attributed to innovations enabled by technological progress. For example, electrification made it possible for us to use electricity to power our homes and businesses; this, in turn, led to new industries and jobs. Transportation advances also played a role in UK's economic growth. For instance, the introduction of the railway system made it easier for people and goods to move around the country. As a result, trade between different regions increased, which contributed to the economy's overall growth. Ultimately, thanks to these technological advancements, the UK has seen a significant increase in GDP per person.

32% of UK innovative businesses reported that the meeting of regulatory requirements was of ‘high’ importance to their decision to innovate

Department for Business, Energy & Industrial Strategy, Innovation Strategy (2021)

The 2016-2018 UK Innovation Survey found that 32% of innovative businesses said that the meeting of regulatory requirements was of "high" importance to their decision to innovate. This is an important finding, as it shows that businesses are increasingly looking to innovation as a way to meet regulatory requirements. In other words, they see innovation as a key compliance tool. This is a positive development, as it indicates that businesses are beginning to understand the value of innovation in today's business world. It also suggests that government policies and regulations are having a positive impact on business behavior. The survey's findings provide valuable insight into the changing landscape of business innovation.

The number of UK innovation active businesses decreased from 49% in 2014-2016 to 38% in 2016-2018

Department for Business, Energy & Industrial Strategy, Innovation Strategy (2021)

The UK innovation system has many strengths. For example, it is ranked 4th in the Global Innovation Index; it has an unrivalled status in research impact amongst the G7. It is a partner of choice for international collaboration. However, the UK faces significant competition and challenges. UK R&D investment is 1.7% of GDP, while the average spending in OECD countries is 2.4%. The proportion of innovation active businesses in the UK has decreased from 49% in 2014-2016 to 38% in 2016-2018. To compete with other countries, the UK needs to increase its investment in research and development and encourage more businesses to be active in innovation.

With less than 1% of the world’s population, the UK accounts for 4% of researchers

Department for Business, Energy & Industrial Strategy, Innovation Strategy (2021)

The United Kingdom may be a small island, but it punches well above its weight regarding research and development. With less than 1% of the world’s population, the UK is home to 4% of all researchers. This concentration of talent has helped the UK punch above its weight in scientific innovation, with British researchers responsible for some of the most significant breakthroughs of the last century. From the discovery of penicillin to the development of the first-ever test-tube baby, British scientists have contributed to the advancement of human knowledge. And with continued investment in research and development, there is no reason to think that this trend will not continue in the years to come.

Companies reported cost as the biggest barrier to conducting R&D

Department for Business, Energy & Industrial Strategy, UK Innovation Survey (2019)

Companies reported cost as the most significant barrier to conducting R&D in the UK Innovation Survey (2019).; this was especially true for small companies with limited budgets. The second most common barriers were time and resources, which are also often constraints for small businesses. Interestingly, larger companies were more likely to cite regulation as a barrier to innovation.; this may be since they are subject to more stringent rules and have more complex operations. Overall, the survey findings suggest that cost is the primary barrier to innovation for businesses of all sizes. Streamlining regulations could help to encourage more companies to invest in R&D.

99% of firms in the design economy employ fewer than 50 people

Design Council (2018)

A recent report by the Design Council found that the majority of firms in the design economy employ fewer than 50 people. This is unsurprising, as design is often seen as a small-scale, personal industry. However, the report also found that these smaller firms are responsible for a significant proportion of the UK's design exports. In other words, despite their size, they are having a big impact on the country's economy.

This is good news for the UK design industry, as it indicates that there is strong demand for British design abroad. It also highlights the potential for small businesses to make a big impact on the economy. The report's findings suggest that the UK's design sector is healthy and competitive, and that it has a bright future ahead.

Design-driven companies show 10-year returns of 219%

Design Management Institute (2015)

The Design Value Index (DVI) is a market capitalization-weighted index comprised of design-driven companies. The DVI has outperformed the Standard & Poor's 500 Index (S&P 500) by 219% over the past ten years, from 2004 to 2014. This remarkable return is due to the increasing importance of design in today's economy. Companies that design attractive and user-friendly products have a competitive edge in today's marketplace. As a result, consumers are willing to pay more for well-designed products, and investors are eager to invest more in companies with a high design value. As the importance of innovation continues to grow, the DVI is expected to continue outperforming the S&P 500.

Qualifying to be part of DMI’s Design Value Index isn’t easy. First, companies must have met the following criteria over the 10-year research period:

  • To ensure consistency of financial reporting standards, corporations must be publicly traded in the U.S. over the last ten years.
  • Design must have been represented in the corporate hierarchy for the period through a central design function led by an executive and the broad deployment of design staff and practices in all significant business units.
  • Over time, these companies have increased design-related investments in headcount, infrastructure investments, and volume of projects.
  • There must be a distinct and recognized operating model for design that promotes cooperation and integration with other corporate functions such as marketing, R&D, and operations.
  • Design leadership must be present at the senior and divisional levels.
  • Finally, the corporation’s senior management must show a deep commitment to design as a critical strategic enabler and a resource for innovation and change.

79% of C-suite executives say their organisations are tolerant of failure

EY (2019)

Encouraging a tolerance for failure is essential for innovation. As the late Steve Jobs said, "The people who are crazy enough to think they can change the world, are the ones who do." innovation comes from taking risks and trying new things, even if they might fail. If organisations only reward success, employees will be afraid to take risks and experiment. However, suppose organisations encourage a culture of innovation and experimentation. In that case, employees will feel more comfortable taking risks and trying new things. This willingness to take risks is essential for innovation. So, it's no surprise that 79% of C-suite executives say their organisations are tolerant of failure. By creating an environment where innovation can flourish, organisations can increase their chances of success.

Over 25% of C-level executives said they have a designated innovation leader, such as a chief innovation officer. In addition, 42% say they will create such a role to foster innovation.

EY (2019)

In today's business world, the need for innovation is more critical than ever. Companies must continually find new ways to improve their products and services to stay ahead of the competition. Unfortunately, innovation can be challenging to foster within a large organisation; this is where the role of the chief innovation officer comes in. By working with other executives to align overall business strategy with innovation goals, the chief innovation officer can help create an environment conducive to innovation. In addition, the chief innovation officer can also provide guidance and support to employees who are working on new projects. As more and more companies recognise the value of innovation, the number of chief innovation officers will likely continue to grow.

To engage employees in innovation, 44% of companies provide incentives for innovative accomplishments, 43% support external workshops or training, and 42% offer special innovation-focused events like hackathons.

EY (2019)

Innovation is critical to the success of any business, yet it can be difficult to engage employees in this process. Many companies find that the best way to encourage innovation is to provide incentives for innovative accomplishments; this could include bonuses, Recognition awards, or even accelerated career growth opportunities. Other companies focus on external workshops or training to help employees get new ideas and learn best practices. Finally, some companies offer special innovation-focused events like hackathons where employees can team up to brainstorm new solutions. By taking a proactive approach to encouraging innovation, companies can ensure that their overall business strategy stays fresh and relevant.

Chemistry SMEs are approximately twice as likely to be investing in R&D as other SMEs

Enterprise Research Centre, What works for innovation: supporting R&D and innovation in deep tech chemistry SMEs (2022)

The UK Innovation Survey is an essential source of information for businesses of all sizes. It provides valuable insights into where companies invest their money and what activities they pursue. The data from the most recent survey suggest that chemistry SMEs are particularly active in research and development (R&D). They are approximately twice as likely to be investing in R&D as other SMEs; this is likely because chemists are constantly working to develop new products and processes. In addition to R&D, chemistry SMEs are also more likely to be investing in other innovation activities, such as design, marketing, and sales; this indicates that chemical businesses are well-positioned to take advantage of new opportunities and drive growth in the future.

In 2021, high-tech products represented 19% of total EU imports and 18% of total exports

Europa International trade and production of high-tech products (2021)

The importance of high-tech products in the EU economy is reflected in imports and exports. In 2021, high-tech products represented 19% of total EU imports and 18% of total exports; this reflects the continued importance of innovation in the EU economy. High-tech products are often at the cutting edge of innovation. The EU economy is reliant on both imports and exports of these products. The high-tech sector is an essential driver of growth and jobs in the EU, and the EU must continue to invest in innovation. The high-tech share of EU imports and exports reflects the sector's importance to the EU economy. The EU must continue to support innovation to maintain its competitiveness.

Up to 95% of production costs occur at the design stage

FastCompany (2017)

One of the most important—and often overlooked—aspects of new product development is the design stage. It may seem counterintuitive, but up to 95% of the production costs for a new product occur during the design phase. This is because alterations made during the later stages of production are much more expensive than those made at the design stage. For example, making a change to the shape of a metal component during production can require entirely new tooling, which can be very costly. Similarly, changing the size or placement of a button on a device can require new molds and packaging, which can also add significant expense. Consequently, it is essential to get the design right before moving into production. By taking care to refine the design during the early stages, companies can save themselves a lot of time and money down the road.

Nearly 75% of global executives say a lack of skills is the biggest issue they face, and 64% say it hinders innovation

GE Innovation Barometer (2018)

Corporate innovation leaders are facing a skills gap. Nearly 75% of executives say that a lack of skills is the biggest issue they face, and 64% say it hinders innovation. The problem is particularly acute in areas like digital marketing and data analytics. Executives also cite a lack of creativity and entrepreneurship as significant obstacles to innovation. To overcome these challenges, companies need to invest in training and development programs to help their employees acquire the necessary skills. They also need to create an environment that encourages creative thinking and takes risks. Only then will they be able to close the innovation gap and unleash the full potential of their workforce.

91% of marketers are leading and supporting innovation initiatives. 62% are solely responsible for such initiatives.

Gartner Innovation Survey (2019)

Innovation is essential for businesses to stay ahead of the competition. Market competition is fierce, and companies need to evolve to remain relevant constantly. 91% of marketers lead and support innovation initiatives, and 62% are solely responsible for such initiatives; this shows that businesses recognise the importance of innovation and are investing more resources into it. However, innovation is not accessible, and it requires a lot of hard work and dedication. Marketers need to be creative and open-minded to develop new ideas that will resonate with consumers. They also need to have the courage to take risks and experiment with new marketing strategies. Only by constantly innovating will businesses be able to stay ahead of the competition.

Marketing innovation is challenged by risk resistance (46%), inability to measure impact (41%), and talent shortages (41%)

Gartner Innovation Survey (2019)

Marketing innovation can be a powerful tool for businesses looking to stay ahead of the competition. However, several challenges can prevent companies from capitalising on this potential. Risk resistance is one of the most significant obstacles. Many businesses are hesitant to invest in new and untested marketing strategies. Additionally, the impact of marketing initiatives can be challenging to measure, making it difficult to justify the investment. Finally, talent shortages are also a significant challenge. As a result, businesses may not have the in-house expertise necessary to implement innovative marketing strategies. While we should not ignore these challenges, they should not prevent companies from pursuing marketing innovation. When done correctly, marketing innovation can help enterprises achieve a sustained competitive advantage.

Top drivers for innovation include enhancing customer experience (53%), driving revenue growth (53%), and developing new products and services (45%)

Gartner Innovation Survey (2019)

According to a recent study, the top drivers for innovation include enhancing customer experience (53%), driving revenue growth (53%), and developing new products and services (45%). While these factors are essential, they are not the only ones that contribute to a company's success. Other factors, such as organisational culture, employee engagement, and process improvements, also drive innovation. To be successful, companies must create an environment conducive to innovation and creativity; this means encouraging employees to think outside the box, encouraging risk-taking, and rewarding success. By focusing on these success factors, companies can create an environment ripe for innovation.

35% of R&D tax credit claims came from London and the South East for 2019/20

HM Revenue & Customs

49% of UK R&D tax relief support was claimed by companies in London and the South West in 2019/20

HM Revenue & Customs

SMEs submitted 76,225 R&D tax credit claims in 2019/20 representing an increase of 16% from 2018/19

HM Revenue & Customs

The UK spent £47.5 billion on R&D in 2019/20, an increase of 15% from 2018/19

HM Revenue & Customs

The number of R&D tax credit claims increased by 16% in 2019/20 from 2018/19

HM Revenue & Customs

There were 85,900 R&D tax credit claims in the UK in 2019/20

HM Revenue & Customs

UK R&D tax relief support for SMEs for 2019/20 was £4.4 billion.

HM Revenue & Customs

UK R&D tax relief support for large companies under the RDEC scheme for 2019/20 was £3.1 billion.

HM Revenue & Customs

UK R&D tax relief support increased by 19% for 2019/20 to £7.4 billion.

HM Revenue & Customs

Ambidextrous organisations succeeded in breakthrough innovation 90% of the time

Harvard Business Review (2004)

Breaking through to true innovation can be difficult for any organisation, even those with the most creative and talented employees. However, a recent study has shown that ambidextrous organisations - that is, those who can manage both exploration and exploitation effectively - are more likely to succeed in breakthrough innovation, with a success rate of 90%; this is because ambidextrous organisations can strike the perfect balance between risk and reward, allowing them to experiment with new ideas while still maintaining a focus on their core business. As a result, they can create an entire innovation portfolio that is profitable and sustainable. So if you're looking to take your organisation to the next level, it might be time to start thinking about how you can become more ambidextrous.

Organisations that are not ambidextrous only succeed in breakthrough innovation 25% of the time

Harvard Business Review (2004)

Organisations that are not ambidextrous only succeed in breakthrough innovation 25% of the time. What factors contribute to success in these cases? Part of it may be the business model. To achieve breakthrough innovation, organisations need to have a business model that supports and encourages innovation; this means having the right mix of people, processes, and resources. It also requires a certain amount of risk-taking and experimentation. But even with the best business model in place, success is not guaranteed. Many other success factors, including luck, timing, and market conditions, come into play. Nevertheless, organisations that are not ambidextrous only have a one in four chance of success in breakthrough innovation.

30% of 3Ms profit should come from products introduced in the last four years

Harvard Business Review (2013)

As a diversified technology company, 3M is always looking for new ways to innovate and grow its business. To stay competitive in the ever-changing marketplace, the company has set a goal of generating 30% of its profits from products introduced in the last four years. This focus on innovation has helped 3M become a leader in a wide range of industries, from consumer electronics to healthcare. In addition, by continually introducing new products, 3M can keep its customer base engaged and excited about its brand. As it continues to invest in innovation, 3M is poised to experience continued growth and success in the years to come.

95% of New Consumer Products Will Fail

Harvard Business School (2018)

95% of new consumer products will fail; this is an alarming statistic, but it's important to remember that this number is not concrete. Some factors can contribute to the success or failure of a product, and careful planning can make all the difference. First and foremost, it's crucial to understand the target market clearly. What needs does this market have that aren't being met by existing products? Once you have identified a need, it's essential to determine whether or not there is a demand for a product that meets this need. If there is intense competition in this space, it may be challenging to break into the market. Finally, it's essential to have a marketing plan and promote the product. Without a well-thought-out strategy, even the best product will likely fail. While the odds are stacked against new product developments, careful planning and execution can help increase the chances of success.

New Products Have a Failure Rate of 25-45 Percent

Harvard Business School (2018)

It's no secret that launching a new product is a risky proposition. Despite the best planning and execution, there's always a chance that the product will fail to find traction with consumers. In fact, industry experts estimate that the failure rate for new products is somewhere between 25 and 45 percent. There are many factors that can contribute to a product's success or failure, but one of the most important is timing. Launching a product too early or too late can be fatal. For example, a product that is ahead of its time may be ahead of the market's needs and fail to gain traction. On the other hand, a product that is launched too late may miss the window of opportunity and be crowded out by competing products. Understanding the market and timing the launch correctly is essential to increasing the chances of success.

Despite the high failure rate, businesses continue to launch new products because the potential rewards are so great. When a new product is successful, it can create a whole new revenue stream and help to solidify a company's position in the marketplace. For these reasons, businesses will continue to take risks and hope for the best.

Half of the S&P 500 are forecasted to be replaced in the next ten years

Innosight

A recent study by Innosight LLC predicts that, within the next ten years, half of the companies currently comprising the S&P 500 will be replaced by new businesses. This is a staggering statistic, and one that has major implications for the economy. The study cites several reasons for this predicted mass turnover, including the increase in disruptive technologies and the shorter lifespan of large organizations. While this forecast may seem dire, it actually presents a unique opportunity for businesses to adapt and stay ahead of the curve. In an ever-changing marketplace, those who are able to anticipate and embrace change will be the ones who succeed.

76% of respondents using hybrid R&D resourcing said innovation is not focused solely on new products, but the entire business model

Innovolo State of Innovation Report (2021)

R&D teams are under pressure to deliver results that directly impact the bottom line. According to a recent survey, 76% of respondents using hybrid R&D resourcing said innovation is not focused solely on new products but the entire business model. This shift in focus has led to a need for R&D teams to be more nimble and responsive to changes in the marketplace. To meet this demand, R&D teams are increasingly turning to hybrid resourcing models that combine in-house resources with external partners. This approach allows R&D teams to tap into a broader range of skills and expertise while maintaining control over the research direction. As a result, hybrid R&D resourcing is becoming an essential tool for companies that want to stay ahead of the competition.

76% of respondents using hybrid R&D resourcing said they have a clear understanding of future innovations that can disrupt their industry

Innovolo State of Innovation Report (2021)

A recent survey of executives involved in R&D resourcing found that a clear majority understand the future innovations that can disrupt their industry; this is critical as it allows them to identify the most important innovation partners and allocate resources accordingly. The survey also found that most respondents believe that disruptive innovation will come from outside their organisation; this highlights the importance of open innovation and collaboration with other companies, universities, and research institutes. By being aware of the potential for disruption and investing in collaborative R&D, organisations can stay ahead of the curve and maintain a competitive advantage.

80% of respondents using hybrid R&D resourcing said their organisations had well-defined and ambitious innovation targets

Innovolo State of Innovation Report (2021)

80% of respondents using hybrid R&D resourcing said their organisations invests sufficiently in projects with a long-term horizon

Innovolo State of Innovation Report (2021)

According to a recent study, most organisations feel they are investing sufficiently in long-term projects. For example, 80% of respondents who use hybrid R&D resourcing said their organisation invests sufficiently in projects with a long-term horizon.; this is encouraging news, suggesting that organisations recognise the importance of long-term planning. On the other hand, the remaining 20% of respondents demonstrate a need for more education on the importance of long-term planning and how it can benefit organisations. With the proper support, organisations can learn to recognise the value of long-term investment better and make the necessary changes to their practices.

82% of respondents using hybrid R&D resourcing said their innovation strategy and roadmap is clearly defined and documented

Innovolo State of Innovation Report (2021)

A recent study found that most organisations view their innovation partners as critical in achieving innovation targets. The study, which surveyed ~1700 senior executives responsible for R&D resourcing, found that 80% of respondents using hybrid R&D resourcing said their organisations had well-defined and ambitious innovation targets. They also identified their most important innovation partners as those who helped them meet these targets. The study highlights the importance of having solid relationships with innovation partners to succeed. With the right partners in place, organisations can focus on achieving their goals and realise their full potential.

Around 70% of companies outsource some elements of their R&D work

Innovolo State of Innovation Report (2021)

While most companies used to rely solely on their in-house research and development teams to create new products and improve upon existing ones, that is no longer the case. Around 70% of companies now outsource some elements of their R&D work, and many view their external partners as just as necessary as their internal ones when it comes to innovation. There are several reasons for this shift. Firstly, it can be costly to maintain a large R&D team, and outsourcing can help to save money. Secondly, companies can access expertise and resources that they might not have internally by working with specialist firms. Finally, partnering with other organizations can help to accelerate the product development process, as multiple teams can work on different aspects of a project simultaneously. As the role of outsourcing in R&D continues to grow, it is clear that most companies now see their external partners as essential pieces of their innovation puzzle.

84% of consumers pay attention to a company's innovative capabilities when purchasing

Lab42

Consumers are increasingly looking for companies that are innovative and ahead of the curve when making purchasing decisions. A recent study found that 84% of consumers pay attention to a company's innovative capabilities when making a purchase; this is likely because innovation is often associated with quality and progress. Furthermore, consumers are increasingly interested in supporting companies working to create new and better products. Given the importance of innovation in the eyes of consumers, companies need to focus on developing their innovative capabilities. Those that can do so will be well-positioned to attract customers and drive growth.

80% of digitally mature companies create partnerships with other organisations to accelerate innovation

MIT Sloan Management Review and Deloitte

Organisations most successful in innovation understand that they cannot do it all alone. They recognise the importance of partnering with other organisations to accelerate innovation. A recent study found that 80% of digitally mature companies create partnerships with other organisations to drive innovation. So, who are the most critical innovation partners? The most obvious answer is other companies working on similar products or services. This type of partnership allows organisations to share resources, ideas, and expertise. However, organisations should also consider partnering with universities, government agencies, and non-profit organisations. These partnerships provide access to new perspectives and ideas and valuable resources. Ultimately, the most important innovation partners can help an organisation achieve its goals.

81% of respondents at digitally mature companies cite innovation as a strength of their organisations, compared with 36% from developing companies and only 10% from early-stage companies.

MIT Sloan Management Review and Deloitte

Innovation is vital to being a successful company in the digital age, evidenced by 81% of respondents at digitally mature companies citing innovation as a strength of their organisations, compared with 36% from developing companies and only 10% from early-stage companies. So what separates the most successful companies from the rest? There are a few key factors. First, these companies have recognised the importance of innovation and have prioritised it within their organisations. They have allotted resources towards innovating, whether financial, physical or human resources. In addition, they have created an environment conducive to innovation, where employees are encouraged to think outside the box and take risks. Finally, they have established systems and processes to bring innovative ideas to fruition. By understanding and implementing these success factors, companies can increase their likelihood of driving real change and making a lasting impact in the digital age.

83% of digitally mature companies depend on cross-functional teams internally to advance their innovation

MIT Sloan Management Review and Deloitte

Successful innovation depends on more than just individual creativity in today's business world. According to a recent survey, 83% of digitally mature companies rely on cross-functional teams to advance their innovation efforts; employees from different departments must come together to solve problems and develop new ideas. By combining their skills and knowledge, team members can generate creative solutions that they may not have thought of. Furthermore, working in a team environment helps to stimulate new thinking and challenge employees to think outside the box. As companies continue to embrace digital technologies, it is clear that cross-functional teams will play an increasingly important role in driving innovation.

86% of respondents from digitally maturing companies say that 10% or more of work involves experimenting or innovating

MIT Sloan Management Review and Deloitte

In today's business world, it's more important than ever to be able to experiment and innovate. With the rapid pace of change, companies need to be able to try new things to stay ahead of the competition. The good news is that, according to a recent survey, 86% of respondents from digitally maturing companies say that 10% or more of work involves experimenting or innovating; this means that companies are recognising the need for innovation and are making an effort to encourage it.

Only 40% of products launched survive on the market. Of those 40%, only 60% gain any revenue

Marketing Research Association

There are a number of reasons why this happens, but one of the most common is that companies simply don't have a clear understanding of their target market. They may create a product that they think is great, but if there's no demand for it then it's not going to be successful. This is why market research is so important. Companies need to understand who their target market is and what needs or wants they have before they can create a product that will appeal to them. Otherwise, they're just shooting in the dark.

84% of executives say that innovation is important to their growth strategy

McKinsey

As the world changes, so too must businesses change in order to stay competitive. This means that innovation must be a key part of any growth strategy. According to McKinsey, 84% of executives say that innovation is important to their growth strategy. This is not surprising, as businesses must always be looking for ways to improve their products, services, and processes. However, innovation is not easy. It requires taking risks, thinking outside the box, and being open to new ideas. It also requires a commitment to continuous learning, as the world is constantly changing and evolving. For businesses to be successful in the long term, they need to embrace innovation and make it a core part of their growth strategy.

80% of executives think their current business models are at risk to be disrupted in the near future

McKinsey

As the world progresses, so too does the business landscape. What was once a stable model can quickly become outdated and vulnerable to disruption. This is especially true in agriculture, where innovation is constantly redefining what it means to be successful. According to a recent survey of executives, 80% believe that their current business models are at risk of being disrupted in the near future. This highlights the need for companies to be proactive in their approach to agriculture. Those who are able to embrace new technologies and trends will be best positioned to weather the storm of disruption.

Only 6% of executives are satisfied with innovation performance

McKinsey

A lack of innovation can be costly for businesses - in terms of lost revenue and missed opportunities. It can also lead to a decline in morale among employees, who may feel that their company is stuck in a rut; this was the findings of a recent survey of executives, which found that only 6% were satisfied with their company's innovation performance.

Only 1 Out Of Every 7 Product Ideas Will Yield A Successful Product

McKinsey (2018)

According to a recent study by McKinsey, only one out of every seven product ideas will yield a successful product. This means that the vast majority of products fail to meet the needs of customers or to generate sufficient revenue to be viable. There are many reasons why products fail, but one of the most common is that they are not well differentiated from existing products on the market. In order to succeed, businesses need to ensure that their products offer something unique that cannot be found elsewhere. They also need to carefully research their target market and ensure that there is a demand for their product. With so many products failing to make it to market, it's clear that launching a successful product is no easy task. However, with careful planning and execution, it is possible to create a successful product that meets the needs of consumers and generates significant profits.

4% of executives have not defined innovation as a strategic priority

McKinsey Global Survey (2010)

In 2010, the McKinsey Global Survey revealed that only 4% of executives had not defined innovation as a strategic priority and had no plans to do so in the future. This finding highlights the importance that businesses place on innovation. In a constantly changing marketplace, companies must be able to adapt and find new ways to remain competitive. For many businesses, innovation is the key to success. By definition, innovation is the process of introducing something new into the market. This can be a new product, a new service, a new technology, or a new way of doing business. In order to be successful, businesses must continually strive to find new and better ways to meet the needs of their customers. Innovation is essential for businesses that want to stay ahead of the curve and remain competitive in today's marketplace.

8% of organisations use the number of new product launches as a lag innovation metric.

McKinsey Global Survey Results (2008)

Organisations that are looking to measure their innovation performance often rely on lag indicators. Lag indicators tend to focus on outputs or outcomes, rather than the inputs or activities that lead to those outcomes. One popular lag indicator is the number of new product launches. This metric can be useful for assessing an organisation's ability to bring new products to market. However, it should not be used in isolation. Other factors, such as the success rate of new product launches, should also be taken into account. Additionally, this metric should not be used as a sole measure of innovation success. As only 8% of organisations use it as a lag innovation metric, it is clear that it is not a universally accepted measure. There are other indicators that organisations can use to assess their innovation performance. Ultimately, the decision of which indicators to use should be based on the specific needs and goals of the organisation.

8% of organisations use the percentage of revenue from new products as a lag innovation metric

McKinsey Global Survey Results (2008)

One of the challenges that organisations face is measuring innovation. There are a number of ways to do this, but one common metric is the number of new product launches. This can be a useful metric, but it has its limitations. For one thing, it only measures output, not outcome. In other words, it tells you how many new products have been launched, but not whether they were successful. Additionally, it doesn't take into account the quality of the products or the time and resources that went into developing them. As a result, the number of new product launches is just one potential metric for measuring innovation. Organisations should consider other metrics as well, such as customer satisfaction or market share growth.

Only a small percentage of organisations use the percentage of revenue from new products as a lag innovation metric, according to recent research. This metric can be used to track a company's progress in terms of innovation, as it measures the amount of revenue generated by new products. However, it is only a useful metric if organisations are also tracking other metrics, such as the number of new products launched and the market share of new products. Otherwise, it can be difficult to interpret the data. The percentage of revenue from new products is only one way to measure innovation, but it can be a helpful metric for organisations that are serious about tracking their progress in this area.

10% of organisations use the number of ideas and concepts in the pipeline as a lead innovation metric

McKinsey Quarterly October 2008

The number of ideas and concepts in the pipeline is a common metric used to measure innovation in organisations. It is a simple metric that can be easily tracked and compared, and it provides a good overview of an organisation's progress in terms of generating new ideas. However, there are some limitations to this metric. First, it only covers the quantity of ideas, not the quality. Second, it does not take into account the stage of development of the ideas. For example, an organisation may have a large number of ideas in the early stages of development, but if none of these ideas progress to the later stages, then the metric will not reflect this. Despite these limitations, the number of ideas and concepts in the pipeline is still a useful metric for tracking innovation, and it is one that is used by many organisations.

13% of organisations use customer satisfaction with new products as a lag innovation metric

McKinsey Quarterly October 2008

According to a 2008 McKinsey Quarterly article, 13% of organisations use customer satisfaction with new products as a lag innovation metric. This means that they measure customer satisfaction after the product has been launched in order to gauge the success of their innovation efforts. While this may seem like a sensible way to assess whether or not a new product is successful, it can actually be quite misleading. customer satisfaction is often based on factors that have nothing to do with the quality of the product itself. For example, customers may be satisfied with a new product simply because it is new and different, even if it is inferior to existing products in terms of functionality or durability. As such, organisations should be careful not to rely too heavily on customer satisfaction as a measure of innovation success.

16% of organisations use revenue growth from new products or services as a lag innovation metric

McKinsey Quarterly October 2008

Although some organisations use revenue growth from new products or services as a lag innovation metric, this is not always the best approach. For one thing, it can take a long time for new products or services to generate revenue, so this metric may not provide an accurate picture of an organisation's innovation efforts. Additionally, revenue growth from new products or services can vary greatly from one organisation to another, making it difficult to compare results. Finally, this metric does not necessarily reflect the quality or usefulness of the new product or service. In other words, a new product or service may generate a lot of revenue but be of poor quality or be of little use to consumers. For these reasons, organisations should be careful when using revenue growth from new products or services as a lag innovation metric.

71% of executives claim to be satisfied with the innovation metrics they are using

McKinsey Quarterly October 2008

Innovation is more critical than ever before. Companies must constantly strive to create new products and services to stay ahead of the competition. However, measuring innovation can be difficult. What metrics should be used? How can you tell if your company is genuinely being innovative? A recent survey of executives found that 71% are satisfied with the innovation metrics; this suggests that companies are making progress in their efforts to quantify innovation. However, there is still room for improvement. In particular, executives would like to see more data on the financial impact of innovation and the customer reaction to new products and services. By collecting and analysing this type of information, companies can better understand their innovation efforts and ensure that they positively impact the bottom line.

Only 32% of executives who claim to be satisfied with the innovation metrics they are using enabled them to use data for actionable purposes

McKinsey Quarterly October 2008

Innovation is essential for businesses to stay competitive, yet many organizations struggle to effectively measure and manage it. In a 2008 McKinsey Quarterly survey of executives, only 32% of respondents who claimed to be satisfied with their innovation metrics said those metrics enabled them to take actionable steps based on data. This suggests that many companies are not getting the full value out of their innovation efforts. To better understand and improve innovation management, businesses need to focus on three key areas: setting clear goals, tracking progress, and taking action.

The average organisation uses 8 separate metrics to measure innovation

McKinsey Quarterly October 2008

Many organizations struggle to define what innovation means, let alone measure it. A recent study by the consulting firm McKinsey found that the average organization uses eight separate metrics to measure innovation. This includes measures such as the number of new products launched, the percentage of revenue from new products, and the number of patents filed. While these metrics can be helpful in gauging an organization's overall innovation performance, they often fail to capture the more intangible benefits of innovation, such as improved customer satisfaction or increased employee engagement. As a result, many organizations are now turning to more qualitative measures, such as surveys and focus groups, to get a better understanding of the impact of their innovation efforts.

Only 47% of people believe that innovation has had a positive impact on people like themselves

Nesta (2020)

Innovation is often thought of as a positive force that leads to progress and improved quality of life. However, a recent study by Nesta found that only 47% of people believe that innovation has positively impacted people like themselves; this suggests that many people have not benefited from recent innovations.
There are several possible explanations for this. First, some innovations may only help a few people, while the majority see little or no benefit. For example, developing new medical treatments may improve patients' lives but do nothing to reduce the cost of healthcare or enhance access to care.
Second, some innovations may lead to job losses as new technologies replace older ones. For instance, the advent of self-driving cars will likely cause widespread job losses in the taxi and trucking industries.
Finally, some people may resist change and therefore view all innovations with suspicion. Whatever the reason, it is clear that many people do not feel they have benefited from recent technological advances.

Companies that integrate industrial designers into their teams have a 9.1% higher employment growth rate than companies that don’t.

Organisation for Economic Cooperation and Development (OECD) (2015)

As the world becomes increasingly competitive, companies are looking for any edge they can find. One way to give your company a competitive advantage is to integrate industrial designers into your team. Companies that do so have a 9.1% higher employment growth rate than companies that don't. Industrial designers bring a unique perspective to product development, and their skills can help you create products that are both functional and appealing to consumers. In addition, industrial designers can help you streamline your manufacturing process, saving you time and money. If you're looking for a way to boost your company's growth, consider integrating industrial designers into your team.

40% of leaders in the U.K fear failures of disruptive ideas

PA Consulting Innovation Report (2017)

In a rapidly changing business landscape, it's more important than ever for leaders to be able to embrace disruptive ideas. However, a new study has found that 40% of leaders in the UK fear failure when it comes to implementing these ideas. While this may seem like a daunting challenge, some key success factors can help leaders overcome their fears and drive innovation within their organisations. Firstly, it's essential to create a culture of openness and willingness to experiment; this means creating an environment where employees feel safe sharing their ideas, regardless of whether they are radical. Secondly, it's essential to have strong organisational support for innovation; this includes having dedicated resources and a budget for exploring new ideas and clear lines of communication between different departments. Finally, it's crucial to have a robust plan for implementing disruptive ideas; this includes having clear goals and milestones, as well as contingencies for when things don't go as planned. By taking these steps, leaders can increase their chances of driving successful innovation within their organisations.

Only a quarter of UK Boards make innovation a priority

PA Consulting Innovation Report (2017)

A recent study has found that only a quarter of UK boards consider innovation a priority; this is a worryingly low number, particularly given the current economic climate. With businesses struggling to survive, it is more important than ever for them to find new ways to grow and prosper. Innovation can be the key to unlocking this growth. Yet, too many businesses fail to put it at the heart of their operations. There are several reasons why this may be the case:

  1. Board members may not fully understand the concept of innovation or its potential benefits.
  2. They may be reluctant to take risks, preferring to stick with tried-and-tested methods.
  3. They may simply not have the time or resources to dedicate to innovation.

Whatever the reason, it is clear that UK businesses need to do more to encourage innovation to compete in the global marketplace.

Only one-third of the U.K. business leaders are innovating successfully enough to generate revenue or measurable growth

PA Consulting Innovation Report (2017)

A recent study by PA Consulting found that only one-third of U.K. business leaders are successfully innovating to generate revenue or measurable growth; this is a troubling statistic, especially given the importance of innovation in today's economy. The report found that the most significant barrier to innovation is a lack of leadership commitment. Without buy-in from senior decision-makers, it can be challenging to allocate the resources needed to support innovation initiatives. Additionally, many businesses are still using outdated methods for measuring innovation success; this makes it difficult to track progress and identify areas for improvement. The good news is that there are steps that businesses can take to improve their innovation success rate. By establishing clear goals and metrics and involving all levels of the organisation in the innovation process, companies can increase their chances of generating new ideas that drive growth.

Two-thirds of UK business leaders surveyed said innovation was important to their organisation's success

PA Consulting Innovation Report (2017)

The PA Consulting Innovation Report findings are clear: most UK business leaders recognise the importance of innovation; this is a significant shift from previous years when innovation was often seen as a luxury or an optional extra. Now, however, it is recognised as a vital component of success. The report's authors attribute this change to the increasingly competitive nature of the global marketplace. With businesses operating in an ever-more connected world, those that fail to innovate will quickly fall behind; this is likely to result in increased investment in innovation programmes in the coming years as organisations strive to stay ahead of the curve.

69% of respondents believe that product management is a leadership role

Product Focus 2022 Product Management Industry Survey

A recent report by Product Focus found that 69% of respondents believe that product management is a leadership role. This finding aligns with the increasingly important role of product managers in organisations. As businesses strive to compete in a global marketplace, the need for effective product management has never been greater. Product managers are responsible for developing and executing strategies that ensure the success of their products. They must be able to identify and assess market opportunities, understand customer needs, and develop plans to bring products to market. In addition, product managers must be able to lead and motivate teams of engineers, marketing professionals, and salespeople. The ability to effectively manage all of these stakeholders is essential to the success of any product manager. As the Product Focus report findings illustrate, the role of a product manager is increasingly seen as a leadership position. This trend is likely to continue as businesses recognise the importance of successful product management in a highly competitive marketplace.

12% of organisations' resources will be wasted in 2022 due to ineffective project management

Project Management Institute Pulse of the Profession (2020)

A recent study by the Project Management Institute found that 12% of an organisation's resources are wasted due to ineffective project management; this is a staggering amount. It highlights the importance of having skilled project managers in place. Many factors can contribute to inefficient project management. Still, some of the most common ones include a lack of clear objectives, inadequate communication, and poor resource allocation. By addressing these issues, organisations can significantly reduce the amount of waste associated with their projects. Doing so can free up valuable resources that organisations can use more effectively elsewhere.

35% of companies consider their customers as the most important innovation partner

PwC

35% of companies consider their customers as the most critical innovation partner. Companies that involve customers in their innovation process have a competitive advantage. They can get feedback and ideas from people who will be using the product or service, allowing them to create a better offering that meets the needs of their customers. Additionally, companies that involve customers in their innovation process build loyalty and relationships with their customers. These customers are more likely to become repeat customers and advocates for the company. Therefore, companies should consider involving their customers in the innovation process to gain a competitive advantage.

54% of companies say their customer engagement strategy drives innovation from early ideation

PwC

A recent study by PwC found that 54% of companies say that their customer engagement strategy drives innovation from early ideation. For these companies, customer engagement is not just about generating leads or sales but also about developing new products and services. In today's competitive marketplace, companies need to strive for innovation to remain relevant continually and top of mind for customers. The study found that the companies that are most successful in driving innovation from customer engagement have a dedicated team or department responsible for this area. In addition, these companies use customer feedback loops to ensure that they are constantly gathering input and ideas from their customers. As a result, companies can position themselves for continued success by making customer engagement a priority.

60% of respondents believe internal employees to be the most important partners to deliver people-powered innovation

PwC

In a recent survey conducted by PwC, 60% of respondents said that they believe internal employees are the most important partners for delivering people-powered innovation. This belief is based on the idea that employees have the knowledge and expertise to identify problems and develop creative solutions. In addition, employees are often more motivated to improve the company's products and services than outsiders. As a result, they are more likely to take ownership of the innovation process and ensure that it is successful. While external partners can play an essential role in innovation, it is clear that employees are seen as the key to unlocking its potential.

61% of companies now use open innovation compared with 34% using traditional R&D

PwC

According to a recent study by PwC, 61% of companies are now using open innovation compared with 34% relying solely on traditional research and development methods. The study found that open innovation is widespread in the technology and automotive sectors. Open innovation involves partnering with other companies or organisations to develop new products or services. This approach has several advantages over traditional R&D methods:

  1. It allows companies to tap into a wider pool of ideas and expertise.
  2. It helps to reduce the risk of failure by spreading the cost of research and development across multiple partners.
  3. It can lead to faster innovation cycles since partners can often work independently on different aspects of a project.

As the global economy becomes increasingly competitive, it is clear that companies need to adopt new approaches to innovation to stay ahead of the curve.

69% of respondents believe sales growth to be the most meaningful indicator of innovation impact

PwC

A recent study conducted by PwC found that 69% of respondents believe sales growth is the most meaningful innovation impact indicator. This finding is unsurprising, as sales are often seen as the most straightforward measure of a company's success. However, other indicators of innovation impact, such as customer satisfaction or employee retention, can provide valuable insights into a company's overall health. For example, a company seeing solid sales growth but declining customer satisfaction may risk losing business in the future. Similarly, a company with high employee turnover may be struggling to attract and retain top talent. By considering various measures, companies can get a more holistic view of their innovation efforts.

54% of innovating organisations have trouble aligning innovation strategy and the larger business strategy

PwC Innovation benchmark (2017)

A recent study found that 54% of organizations have trouble bridging the gap between innovation strategy and the larger business strategy. This means that they have difficulty aligning their efforts to create new products or services with the overall goals of the business. There are a number of reasons why this gap exists. First, innovation can be a risky and uncertain undertaking, which makes it difficult to plan for and budget for. Second, innovation requires resources and capabilities that may not be evenly distributed throughout the organization. Finally, there can be a lack of communication and coordination between different teams working on innovation projects. As a result, it is not surprising that many organizations struggle to bridge the gap between innovation strategy and business strategy. However, there are some things that organizations can do to overcome these challenges. First, they need to create a clear and shared vision for innovation. Second, they need to allocate resources and build capabilities in a way that supports the vision. And finally, they need to establish clear lines of communication and coordination between different teams. By taking these steps, organizations can improve their chances of successfully integrating innovation into their business strategies.

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