Innovation is supposed to be a key driver of business growth. Yet, it is often perceived as an abstract concept, difficult to integrate concretely into corporate strategy. 83% of companies consider it a priority, but only 3% manage to turn it into a real success. Why? Because many focus on narratives and trends rather than execution and real added value.
Strategy & Innovation: A Too Often Neglected Link
Innovation is often a catch-all term used without a clear vision. 52% of companies invest in innovation without a defined direction, diluting their efforts into unstructured projects. However, an effective approach relies on three precise pillars: creating new revenue streams, improving operational efficiency, and maximizing profitability. Without this structuring, innovation becomes an isolated initiative with no lasting impact.
Aligning Innovation and Business: Prioritizing Impact
Companies want innovation, but not at the cost of organizational chaos. If innovation does not simplify a process, it will be difficult to adopt. Any change that introduces more than three new steps slows execution and hampers adoption. The solution? Test before scaling. A targeted Proof of Value (POV) helps assess relevance and ensures smooth adoption before large-scale deployment.
Return on Innovation: An Essential Metric
If innovation does not generate measurable value, it remains an expensive experiment. McKinsey’s 3 Horizons Model helps articulate a balanced vision between short- and long-term gains. But beyond vision, clear metrics are needed. Setting KPIs using the OGSM method (Objectives, Goals, Strategies, Measures) is crucial to track impact and ensure tangible ROI. Companies that precisely measure their Return on Innovation (RoI) achieve 20% higher profitability than their competitors (Harvard Business Review, 2023). Innovation should be managed as a profit center, not a cost center.
Startups Choose Their Partners: Are You Attractive?
Contrary to popular belief, startups are not actively seeking to collaborate with large corporations. They have their own ecosystem and prefer partners who offer real added value. To establish effective collaborations, companies must be fast, credible, and provide a win-win framework.
Traditional approaches like incubators are showing their limits. The most effective models include: Venture Building, Venture Client, Ecosystem as a Service, and Open Innovation. These methods enable a smoother and more efficient integration of innovation into overall business strategy. Large companies adopting a Venture Client model reduce their innovation integration cycle by 40% and increase POC success rates by 50% (27pilots, 2023). In short, they stop scouting and start doing business.
Adopting Innovation with the Right Pace
Innovation must be structured within a clear and measurable cycle. Instead of five-year plans, focus on 6, 12, and 18-month cycles. If a project does not show impact within six months, it must be adjusted or halted. Innovation thrives on speed of execution and continuous iteration, with concrete results at each stage.
Conclusion: Less Theory, More Action
Innovation should not be a vague promise. It must be integrated into strategy, driven by precise indicators, and oriented towards tangible results. It’s not enough to innovate, transformation is key. Companies that succeed will be those that prioritize rapid execution, a clear vision, and a relentless focus on value creation.
Forget innovation talk. It’s time for measurable results.
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