A recent Accenture study of 630 U.S. and U.K. executives found,” 89% said that innovation is as important, if not more important, than cost reduction to their company’s ability to achieve future growth.”
However, Accenture found these flaws as companies manage innovation:
— failure to learn from mistakes;
— widespread risk aversion;
— the need for more collaboration; and
— too much emphasis on making incremental improvements.
Executives across a wide swath of industries, including automotive, banking, capital markets, consumer goods and services, electronics and high-tech, insurance, manufacturing, pharmaceutical, medical products and retail participated in the study.
“Companies can’t afford to avoid risk; they must learn from their mistakes and make the bold moves required to grow their company and position it for the economic upturn,” said Mark Foster, Accenture’s group chief executive, Global Markets and Management Consulting. “Unfortunately, many companies don’t have the processes that would enable them to conduct the risk-benefit analysis required to comfortably make the decisions associated with pursuing big bets, which is why innovation oftentimes doesn’t deliver the silver bullet companies seek.”
“Managers must lead by example, collaborate across departments, communicate the business strategy down the line and inspire their teams to engineer the next category-defining product,” Foster said. “Companies that fail to do so may lose significant ground to competitors who understand the value of innovation and manage it well.”
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