PwC
11.09.2013 16:34
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PwC Study Finds Innovation Moving From Fringe Activity to Mainstream
DALIAN, China, 2013-09-11 16:34 CEST (GLOBE NEWSWIRE) --
The world's most innovative companies expect to grow by more than 60% over the
next five years, adding a total of more than US$250 billion in new revenues as
a result of sophisticated approaches to innovation in all areas of their
operations.
A new PwC study, Breakthrough Innovation and Growth--your $500 million
opportunity, released here at a meeting of the World Economic Forum, found a
direct correlation between excellence in innovation and superior revenue
growth. According to the study, the top 20% of innovators worldwide say their
growth rate over the next five years will be double the global average and
three times higher than that of the least innovative companies.
Companies are fundamentally changing the way they innovate, the study found.
Innovation has moved beyond products and services and now regularly encompasses
business models, operating systems and customer experience. Additionally,
collaboration with both internal and external partners has become vital to
innovation efforts.
Said David Percival, PwC's Global Client Innovation Leader:
'Innovation has gone mainstream. Five years ago, expansion into China was seen
as the most powerful source of growth for just about every business. Now,
companies see that innovation presents them with greatest potential for
growth.'
While innovation was once thought to be the province of technology and consumer
goods companies in developed economies, it has now become a key driver of
growth for companies regardless of sector or geography. The top tier of
innovators identified in the study come from a diverse range of sectors from
healthcare to automotive to financial services, and from India, to the
Netherlands and Brazil.
Said Rob Shelton, PwC's Global Innovation Strategy Leader:
'Business leaders must understand that there are already innovation pioneers in
their industry and around the world. Leaders must be ready to step up to
disruptive challenges from their more innovative competitors.'
The study found that successful innovation is dependent on well-developed
strategies. Nearly 80% of top innovators said they had well defined innovation
strategies, compared with less than half of among the least innovative
companies.
The most innovative companies treat innovation in the same way as any other
business or management process, the study found. Just one in five of the most
innovative companies described their approach to innovation as 'informal,'
compared with about one-third of the least innovative. Executives from the most
successful companies say they devote more time to innovation, have more
incentives to collaborate and are more likely to be supported by senior
management.
Comparing innovation
The study found major differences between the most and least innovative
companies. Among them:
-- The most innovative companies anticipate 62.2% revenue growth over the next
five years compared with 20.7% for the least innovative.
-- The combined revenue growth of the most innovative companies is forecast to
be US$252 billion over next five years compared with US$93 billion among
the least innovative.
-- Two-thirds of the most innovative companies say innovation is a competitive
necessity compared with 19% among the least innovative.
-- Nearly 80% of the most innovative say they have a well-defined innovation
strategy compared with 47% of the least innovative.
-- The most innovative companies are almost twice as likely to be targeting
breakthrough and radical innovations.
-- The most innovative companies are more likely to use corporate venturing to
drive growth: 13% vs. 7%.
-- The most innovative companies use social media more often to collaborate
externally: 67% vs. 39%.
The most innovative are less likely to manage innovation efforts informally:
21% vs. 32%.
Notes to editors:
-- PwC surveyed 1,757 C-suite and executive-level respondents responsible for
overseeing innovation within their company across more than 25 countries
and 30 sectors. To our knowledge, this is the largest and most
comprehensive study of C-suite executives exploring innovation from a
global, multi-sector perspective.
The report includes commentary and case studies derived from in-depth
interviews conducted from among the same pool of executives, and with PwC's
Global Innovation Leaders. These insights are brought together into an
Innovation Blueprint outlined in Chapter 3 of the report.The research was
shaped by PwC in collaboration with consultancy Meridian West.
-- PwC helps organisations and individuals create the value they're looking
for. We're a network of firms in 158 countries with more than 180,000
people who are committed to delivering quality in assurance, tax and
advisory services. Tell us what matters to you and find out more by
visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each
of which is a separate legal entity. Please see www.pwc.com/structure for
further details.
<p>The PwC logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=2684<br /><br />(c) 2013 PwC.
All rights reserved.</p>
CONTACT: Mike Ascolese, PwC
Tel: +1 (646) 471 8106
e-mail: mike.ascolese@us.pwc.com
Follow/retweet: @pwc_press
News Source: NASDAQ OMX
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