Innovation

The Role of Innovation

Why does everyone say that innovation is important?

Several recently published surveys have confirmed the importance of innovation.

For example, the 1.600 executives respondents to a Boston Consulting Group survey ranked innovation as a strategic priority with 72% ranking it as a top---three priority.

Also, research recently undertaken by McKinsey supports this finding with their survey reporting that "84 percent of executives say innovation is extremely or very important to their companies growth strategy".

You can find the full BCG survey report in PDF here.

You can find the full McKinsey survey report in PDF here.

For organizations, there are a number of reasons which make innovation so important:

Market level

To survive adverse changes in operating circumstances
To build brand equity
To make life easier for their customers
To gain competitive advantage
To protect market share
To reposition organization and raise its market profile
To lead the market and reinforce a reputation as market leader
To open new horizons so as to get out of a rut or avenues with limited potential

Staff and Organization

To stimulate employees with interesting and challenging work
To attract and retain talented staff
To provide stability for the workforce
To encourage employees with good ideas to approach the company
To attract alliance partners

External & Financial level

To comply with actual or future legislation
To reduce competition and / or the influence of competitors
To raise margins and profitability
To drive total shareholder returns