The study looked at how firms allocate innovation investments across business portfolios to get greater value from investments made.
Key findings include:
- Fewer than one in eight companies govern innovation extensively, and those that do have achieved twice the revenue growth of the vast majority of companies that govern innovation in a more haphazard way.
- Only 12% of companies govern innovation extensively and those companies achieved a compound annual growth rate of 5.9%, on average.
- Those that do not govern intensively, have recorded a 2.9% increase on revenue on average.
- 84% of executives direct innovation centrally e.g., through a chief innovation officer or an innovation committee — the report notes that centralised direction and management might not be enough.
- Organisations are better able to exert control over their innovation investments when they follow at least some of the 12 rituals.
Paul Daugherty, Accenture’s chief technology & innovation officer, said: “The growing hunger for innovation is putting it at the core of every new business decision, but many companies lack the discipline needed to turn their innovation investments into growth.
“While many see innovation as a creative force that can’t be controlled, our research reveals that a systematic approach to managing innovation and governing it extensively can provide tangible financial impact.”
The survey comprised executives from 1,100 companies.
The report is available for download here