- Seventy-four percent of the executives surveyed
said that their companies will increase spending on
innovation in 2005, up from 64 percent in 2004.
- Almost 90 percent of the executives surveyed said
that generating organic growth through innovation
has become essential for success in their industry.
- However, less than half of the executives surveyed
said that they were satisfied with the financial
returns on their investments in innovation.
- Executives ranked Apple, 3M, GE, Microsoft, and
Sony as the most innovative companies. Apple
rose to the top spot from number five last year.
- Globalization and organizational issues were
cited as two of the biggest challenges facing many
companies in 2005.
One of the biggest problems identified by the servey is measurement. Few companies believe
they have the right metrics for innovation in place and less than half of the executives in their survey said that their company carefully tracked the financial returns on innovation at all. However, according to the report,
But for that type of analysis, they probably have to sell you your own survey.
Despite the many uncertainties of innovation, it is possible to assess, at the outset, the likely impact of different approaches to managing the full innovation-to-cash ("ITC") process. In our experience, this assessment typically is best accomplished by examining the cash curve of an innovation. A cash curve depicts the cumulative cash investments and returns for an innovation over timeâ€”it runs from the very beginning of development until the point at which the product or service is removed from the market. Since managementâ€™s decisions affect the shape of the cash curve, companies can use it to openly discuss how to manage the curve, and the resulting returns, and make the required decisions and tradeoffs.