For many CEOs of large organisations, they want to innovate, but they don't know how.
According KPMG’s 2016 Global CEO Outlook tracking innovation, disruption and new technologies is a priority when transforming their companies for the future.
- 77% of CEOs believe that tracking innovation is important for their overall business strategy
- 65% of CEOs are concerned that disruptions and new entrants to the market will affect their business
- 77% of CEOs are looking to stay up-to-date with new technologies which will be a top area of investment
Though for many large organizations, fostering innovation is much harder to instigate, when taking risks with tried and tested business models.
A common challenge for many large companies is that different divisions and business units are not working collaboratively. Budgets and projects are run in silos; and teams are not communicating effectively when developing new business models, strategies and products.
To nurture a culture of innovation, senior leaders within an organisation need to plan their approach, before leaping head first into building products and bringing them to market. For many CEOs, they want to innovate, but they don't know where to start.
To prepare and plan for innovation there are four main components; Approach, Organizational Structure, Resources, Metrics and Incentives.
See below a checklist of questions for CEOs when planning their innovation programme.
Business transformation is a team sport, and it's essential for senior leaders and management teams to adapt their commercial mindset when approaching innovation, and consider the impact of disruptive tech and rising start-ups which can threaten the core of the business model.
Having a clear and organised plan is fundamental for any business if they want to innovate. Senior leadership, governance and collaboration are crucial elements of organisation structure, and CEOs can facilitate a culture of innovation through strong leadership skills, ensuring their senior teams stay up-to-date on the latest market innovations and new technologies.
Once your strategy and approach is defined, it is important to make sure you have the right resources available. These go beyond funding and allocating budgets to R&D, but delve deeper into talent management and innovation tools. Is your talent pool able to adapt to new technological changes within the company? Do you have the right technology available to enable your senior executives to efficiently track innovation? Tools like EditorEye Catalyst can help.
When evaluating the success of your innovation programme, some metrics may be more difficult to measure i.e. how do you decide the impact of innovation? By looking at the percentage of revenue that comes from products and services in the last year, you can see if they have an innovation problem or not. If less than 50% of your revenue is coming from products during that timeframe, then you may have an innovation problem.
How is your organisation tracking innovation today?
EditorEye Catalyst is the leading executive intelligence platform which delivers insights to senior management teams, so they can drive new business leads, engage clients, track disruptive innovation and become more effective in their roles. Get in touch via email@example.com to learn more.