Innovation Leader and KPMG have released a new report which looks at the best innovation strategies, investments and approaches to drive growth for the future
The report is based on the results of a study conducted amongst 215 of the Fortune 1,000 companies.
Key survey findings include:
- Fortune 1000 companies are showing increased confidence in their innovation strategies and investments. 41% say their innovation focus has grown in the past year.
- 50% of companies with more mature innovation processes are more confident they have increased investments over last year
- 56% of respondents expect that their company's overall investment in innovation will increase from 2019 to 2020
- Companies are increasingly integrating innovation efforts with strategy and transformation initiatives
- Investment continues to focus on adjacent and transformational innovation. 52% of innovation initiatives are focused on adjacent and transformational activities. And, that shift increases to nearly 60% for adjacent and transformational innovation among the companies defined as role models
- The role of the CFO in innovation continues to evolve. 58% of respondents said that they are tracking revenue to evaluate the success of their innovation programmes, 71% say that innovation efforts are funded as part of the annual budget process and 40% cite lack of budget as an obstacle to the success of their innovation programmes
- Obstacles to success include politics and talent. 52% cited politics, turf-wars or lack of alignment as the biggest obstacle to success. However, among the role model companies, the fight for talent is increasingly becoming a hurdle. Of those companies, 41% responded that difficulty recruiting talent with the types of skillsets that are in high-demand today is the biggest obstacle they face
- 61% stated that competing priorities is the challenge that they most frequently encounter when trying to scale innovation initiatives
Fiona Grandi, a KPMG national managing partner of innovation and enterprise Solutions, said: "Today's unprecedented pace of change makes it even more critical for companies to be able to answer a key question: are we investing in the right things—at the right time—to drive growth for the future?
"For all businesses, the cost of underinvesting in enterprise-scale innovation is high. It can mean the difference between continued growth and obsolescence."
Scott Kirsner, CEO of Innovation Leader, added: "One key to longevity and impact for innovation teams in any industry is that they find ways to collaborate with other parts of the organization," says.
"Creating allies and supporters is key because there are always internal conflicts and resource debates you'll need to work through."
The full findings of the survey are available here