Top performers focus on number of ideas generated and innovation spend
Outside-in approach to digital innovation
Innovation is a top priority for many companies. Global CEOs ranked product and service innovation as their top strategy for growth, over increasing market share, entering new geographic markets, M&A, or joint ventures and strategic alliances.5 Their top-three priorities in 2014 are to innovate products, technology, and services.6 Yet most businesses don’t cast a wide enough net in their pursuit. A great deal of innovation occurs beyond company walls such as in government and university labs. Consider the rise of open source-based innovation, explosion of crowd-funded innovations, and the uptick in venture funding. In fact, 2013 marked the highest level of venture capital (VC) Internet investment since 2001, with $11 billion in funding, while software deals accounted for 37 percent of total VC investment for the year.7
Top performers in our study were more likely to look to outside sources to fill their idea pipelines, in addition to internal sources. But all companies tend to rely most heavily on traditional sources like internal planning sessions and workshops. A better approach is what we call “outside-in” innovation because it embraces new ideas and experimentation that comes from unlikely sources and industries.
From emerging to disruptive— to opportunity.
Given the wealth of potential sources, outside-in innovation will generate a lot more potential ideas. It’s crucial for companies to effectively filter and discern which emerging technologies will be the most disruptive to their unique company, market, and customers. Innovation leaders more often use a structured or formal ideas, compared with less innovative companies. The result is the short- list of digital disruptors that the company will explore. Here, again, top-performing companies are more likely to work with external groups like third-parties and universities.
Another leading practice when it comes to innovation? Top-performing companies focus on a range of measures, and those that focus on number of ideas generated and whether innovation spending is on budget are twice as likely to be top performers.
5 PwC, 17th Annual Global CEO Survey, 2014. 6 PwC, Breakthrough Innovation and Growth, 2013. 7 PwC/NVCA MoneyTreeTM Report based on data from Thomson Reuters, Q4 2013/Full-year 2013, 2014.
~ Curated by The Marketing Curator and Pass The Idea (www.pass-the-idea.com)
Source: www.pwc.com/us/digitaliq – 6th Annual Digital IQ Survey