84.9% respondents said innovation is very important, but 78% admitted to focus only on incremental changes, said a survey by CB Insights.
Enormity of size, structured operations with elongated hierarchy, and fear of failure have been few of the commonly known reasons why corporate or large companies are unable to scale the pace of their innovation. This was echoed in the market intelligence platform CB Insights latest survey that talks about innovation at large companies.
According to the survey of 677 corporate strategy executives or leaders globally, 60% respondents said it takes a year or longer to create new products as their propensity for building these products to innovate instead of partnering with other companies for such products or buying them slows down innovation.
Moreover, the survey revealed that while corporate strategists understand the importance of innovation but few implement it in businesses.
“84.9% respondents said innovation is very important, but 78% admitted to focus only on incremental changes,” the survey said.
Iterating on the existing products or services, cutting costs, and efforts focused on productivity are the areas that companies continue to focus on instead of taking “disruptive risks”.
Here are some other interesting findings from the survey:
Companies also acknowledged that they might soon be disrupted as 41% of executives said their companies are at extremely or very high risk of disruption.
Despite that, 57% respondents admitted that they do not follow formal innovation processes.
However, large companies particular those having over $10 billion in revenue, placed the highest importance on innovation.
They survey said that companies, on average, invest 78% of their innovation budget in continuous improvements to existing processes and products instead of investing in disruptive innovation.
Interestingly 85% businesses levels the revenue they generates as a measure for innovation while around half of it equals the number of projects completed and customer satisfaction to understand how innovative they are.