Here is our group’s PowerPoint presentation based on the IBM Global CEO Study conducted last 2006. Some interesting points to consider here:
- While innovation in the product/service/market and operational aspects remain fundamental, many CEOs now regard business model innovation as the new frontier. One that will give their organisation an edge over their competitors. In fact, the study found that there is a huge correlation between financial performance and investment in business model innovation.
- The key, as these CEOs see it, is not in how big or how small a firm is. The trick is in how to make it more agile in the face of constantly changing threats and opportunities in the market. Through business model innovation, companies ensure agility.
- Internal R&D is no longer considered as among the top sources of innovation. The top three important sources are now: employees, business partners, and customers. An even more interesting finding is that many CEOs consider competitors to be a more valuable source of innovation than their own internal R&D departments. While this may be strange at first, if we consider how two competing firms can combine forces to beat the rest of the industry, then it will start to make sense.
- CEOs no longer think of their internal R&D manager as the sole responsible person for bringing innovation into the company. Rather, innovation is now considered as the whole organisation’s job with the CEO in the center motivating everyone to come up with innovative ideas.