Atlee Valentine Pope, President and CEO, Blue Canyon Partners Inc. and partner of the STRATORG ALLIANCE GROUP, shows in her white paper „Breakout Growth: The Innovation Competency“ the importance of innovation for companies.
Survey on innovation.
A recent survey conducted by the Manufacturers Alliance for Productivity and Innovation (MAPI) found that underperforming new product development costs the average manufacturer $150 million in revenue each year. The issue goes beyond manufacturing and permeates every company, in every industry, whether it be product innovation, packaging innovation or process innovation. One recent statistic reported that the world’s largest public companies spent nearly $650 billion on R&D. Despite these huge investments, time has shown that the amount invested has no direct correlation to marketplace success and nearly half of all companies are unhappy with the results of their innovation activities.
Innovation drives organisations
Furthermore, innovation continues to be an emerging specialist area within organizations. Companies increasingly are looking to innovation executives to develop and implement successful innovation approaches, methodologies, and tools that will accelerate growth, streamline operations, and give the company a competitive advantage. Yet admittedly, many organizations do not have an explicit innovation strategy in place, which impairs growth. Despite these challenges, the focus on innovation continues. For many companies, innovation is the key to driving top-line growth, competitive advantage, and shareholder value. However, creating a powerful innovation capability, is no easy task. Questions executives often ask us are:
- How can we successfully drive innovation in ways that create value?
- Which customers will reward us for this innovation?
- What building blocks need to be in place for us to sustain innovation?
Blue Canyon’s work in this area shows that business-to-business enterprises who successfully innovate are organizations that start by proactively investing in one-off innovation frameworks and programs, such as ideation forums, stage-gate processes, and other related innovation best practices. Over time, these leading organizations move from these early investments to building a comprehensive, company- wide Innovation Competency. This competency is what precisely enables a supplier to continually bring a distinguished, profitable offering to market. This white paper defines the Innovation Competency along four critical dimensions and shares how an organization can improve its Innovation Competency to drive success.
The Innovation Competency reflects the ability of a supplier to make breakout contributions to its customers. The supplier that brings creative ideas, approaches, and concepts about problems and opportunities to the marketplace is most likely to become a treasure to its customers. However, the previous sentence is not meant to imply that innovation equals creativity. Creativity is just one element of establishing an Innovation Competency.
To be a truly innovative company, business leaders should focus on building an Innovation Competency, of which creativity is the starting point. Blue Canyon evaluates this along four different, interrelated dimensions:
In the next articles these four interrelated dimensions will be described and evaluated.
About the author
Atlee Valentine Pope is president and chief executive officer of Blue Canyon Partners, Inc., and the co-author of the growth strategy book CoDestiny: Overcome Your Growth Challenges By Helping Your Customers Overcome Theirs. In addition to overseeing Blue Canyon’s operations, Atlee works directly with a number of clients to produce market-driven answers and actions plans that foster profitable growth. More recently, Atlee’s work has included helping clients in areas such as channel management, strategy implementation, pricing strategies and adjacencies.
More you can find on www.bluecanyonpartners.com.