The Innovation Imperative: Growth from Innovation is a Top Priority for Organizations

Growth dominated CEOs’ strategic priorities in the last four years, with more than 50% of the growth expected to come from new products and new markets.*

However, various research shows that few do it well. Multiple sources site 50%-80% of new products, across industries, fail to meet one or more of their critical metrics for success.

* Gartner, 2015

The most common challenges that companies experience include:

  • Disconnect between innovation and the business strategy
  • Lack of pipeline visibility and understanding of what is needed to deliver the target business results
  • Abundance of ideas, but shortage of qualified concepts for development that will drive differentiation
  • Difficulty in identifying the product requirements necessary for success 
  • Difficulty monitoring and measuring innovation performance 

Running Innovation
Like a Business

High performing companies understand innovation is about more than great ideas. It is about turning great ideas into on-time, predictable, revenue-generating products and services.

Recommendations for improving return on innovation:

Articulate and align on an Innovation strategy 

Creativity can produce a lot of ideas, but business value increases exponentially when creativity is channeled to strategic priority areas.

Manage the Fuzzy Front End

Define a process that balances the need for more predictable results with the “freedom” to foster creativity and the iterative learning cycles.

Systematically turn ideas into qualified concepts

Enable systemic discovery and experimentation to help quickly develop concept components and the corresponding business case.

Actively manage Innovation portfolio and investment allocation

Define strategic buckets that direct FEI efforts and provide a holistic view of the pipeline, including ideas and product development projects.

 

Organize and reward for success

Design an innovation team with different than the daily operations team skills sets and incentives that can support the unique breakthrough innovation work. 

Measure your results and learn to improve

Conduct regular project post launch reviews and annual portfolio results analyses to build a repository and apply lessons learned to improve odds of in-market success.

More Than Cosmetics For Mary Kay: Six Best Practices For Digitizing Innovation

Benefits

Companies that effectively manage their end-to-end innovation processes see real business benefits.

35% cycle time reduction through pipeline cleanout and portfolio management practices

25% improved portfolio value through improved prioritization and decision making

11-24% higher profit margins on new products by companies using best-in-class portfolio management practices

Increase Your
Return on Innovation

Leading companies enable these six success practices with technology. With Kalypso's exclusive focus on innovation and proven track record of helping organizations improve results from innovation and Oracle's leading Innovation Management Cloud solution, we can help you get started and get better quickly. 

To get started, request more industry specific information and a demo of the solution using the form below.

Innovation Management Resources

Leading Health & Wellness Nutraceuticals Manufacturer enables growth from innovation with Oracle Innovation Management

Turning great ideas into high-value commercially successful products

How to Manage Innovation as a Business

Additional Thoughtware

White Paper The Front End of Innovation: Not So “Fuzzy” Anymore

Over the years, capabilities around the front end of innovation (FEI) have evolved significantly. So what is still preventing organizations from delivering results? Take a holistic look into your innovation processes, systems, capabilities and…
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Article Mastering the Front End: Seven Steps to a More Creative Organization

To develop a truly creative organization, companies must create an environment that enables light bulb moments in a repeatable, relevant way. Not so simple. Here are some tips to combine creativity with discipline to help master the fuzzy front end.
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Article Between the Gates, Vol. 1: Opportunity Proposal Development

A well implemented gate review process allows leadership to evaluate projects from a business perspective at critical junctures, leaving day-to-day project execution to an accountable project team. So why are so many of these same companies…
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Article Between the Gates, Vol. 2: Product Requirements

Even companies with gated processes in place fall short of innovation goals because they need guidance on what happens “between the gates”. Here are some practical tips for project teams who want to improve product requirements…
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