Recent studies continue to reinforce the empirical evidence of the positive impact of innovation on company performance. According to these studies, those companies that are committed to innovation will grow three times faster over the next five years. Companies that do not commit to innovation will tend to disappear.
In 1958, the 500 largest companies in the United States listed on the S&P500 remained in that index an average of 61 years. Today that period of permanence falls around 18 years, but the forecast for 2025 is close to 15 years. That means that no matter the size, even the largest companies in the world may disappear in 15 years if they do not innovate. Fund industry is not a horse of a different color.
In this situation, as a manager, are you leading strategies and a culture to encourage innovation in your company?
However, and before you get too excited about the idea of starting immediately with the innovation matter within your company, statistics show that almost 80% of new products and services fail during the six months after launch.
So, how can we successfully innovate considering these failure ratios? Professor Carlos Osorio view is that major problems in the company arise when the focus is more on the idea than in the challenge. According to their investigations, 75% of “great ideas” fail. Nevertheless, 99% of attempts to solve “innovation challenges” end as success. In this sense, having innovative leaders in the team will help to improve all areas of the company activity.
Another author, Roy Rothwell at the University of Sussex, provided an historic overview of industrial innovation management in the Western world. He described 5 generations of innovation models: Technology Push (1950-1960), Market Pull (1960-1970), Coupling of R&D and Marketing (1970-1980), Integrated Business Processes (1980- mid 1990s)and System Integration & Networking (since mid 90s onwards). Current innovative companies are associated to a diverse portfolio of partners which together create an innovation system based primarily in exchange of information and knowledge.
Creating this net of employees and partners with innovative capabilities can be a good way to start ensuring the growth and competitiveness of your company.
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