Innovation: A Solid Wager, in Good Times and in Bad

At a time when executives are often lucky if they can just hold on to the saddle, superior innovation management is one sure-fire way to outperform the market.

Page 1/3
 1 2 3   

A.T. KEARNEY MANAGEMENT CONSULTING SRL




CHARLES PERRARD

CHARLES PERRARD

PRINCIPAL at A.T. KEARNEY MANAGEMENT CONSULTING SRL


ENGEL KAI

ENGEL KAI

PARTNER at A.T. KEARNEY MANAGEMENT CONSULTING SRL


HARRIS NG

HARRIS NG

PRINCIPAL at A.T. KEARNEY MANAGEMENT CONSULTING SRL


JOCHEN GRAFF

JOCHEN GRAFF

PRINCIPAL at A.T. KEARNEY MANAGEMENT CONSULTING SRL

For many top managers, innovation is like the mythical Fountain of Youth. If only they could lead their companies to its fabled waters, they would step out of the pool rejuvenated—or, to state it in business terms, with a sustainable competitive advantage. But alas, while many are believers in innovation's extraordinary powers, few can actually bear witness to its miracles.

 

Indeed, innovation is broadly accepted as an important means of value creation. Yet the value that innovation generates often takes time to materialize, and the business case for innovation is inherently fraught with risk and uncertainty. Frequently, markets are slow to recognize successful innovation, and impatient investors don't always afford executives the luxury of waiting until the market prices in their prescience.

 

A.T. Kearney has been studying innovative companies from across Europe for the past. And we've found that innovation leaders consistently outperform their peers not only in share price but also in revenue and earnings growth—arguably more meaningful indicators of value creation at a time when markets have proved to be extremely fickle. The difference is significant (see figure 1).

 

If innovation, then, is critical to resilience during economic downturns and an unmistakable path to long-term value creation, the question then is: What makes a company a Best Innovator?

 

Separating the Best from the Rest

 

Best Innovators don't just wake up one day and decide to innovate. Innovation must be enabled and unlocked, and the companies that do it well build specific capabilities to continuously fuel, develop, and manage ideas from concept to market launch. In other words, they actively create the conditions for successful innovation by developing the ability to explore innovation concepts and the skill to bring select concepts to fruition (see figure 2).

 

Charting the waters

 

Ideas are like nutrients floating in the sea. They are innumerable, yet if they could be isolated, captured, and refined, they could feed humanity. The ability to successfully isolate and capture ideas—refining them into concepts ready to be developed—is the primary driver of innovation performance in the exploration stage, and it requires several building blocks.

 

Many innovative endeavors are just evolutions of current value propositions. But in other cases, innovation provides a real breakthrough; it challenges the business territories and goes far beyond existing capabilities. A common requirement of all innovation projects, regardless of their disruptiveness, is the need for a clear innovation strategy that provides a "compass" for innovation, a set of directions that exclude irrelevant ideas and ensure alignment with company strategy.

 

 

Page 1/3
 1 2 3   

COMMENT ON THIS ARTICLE:




Load new captcha.
 

TOP RUBBER & PLASTIC PRODUCTS COMPANIES (2015)
Scoring Methodology by ERNST&YOUNG


 
#
COMPANY NAME
MCR TOTAL SCORING
 
1 CONTINENTAL AUTOMOTIVE PRODUCTS SRL 3,6875
2 TAKATA ROMANIA SRL 3,3125
3 CONTITECH ROMANIA SRL 3,2500
4 MICHELIN ROMANIA SA 3,1875
5 PIRELLI TYRES ROMANIA SRL 3,1875
6 CONTITECH FLUID AUTOMOTIVE ROMANIA SRL 3,0625
7 EURO AUTO PLASTIC SYSTEMS SRL 2,8750
8 TAKATA SIBIU SRL 2,6250
9 HUTCHINSON SRL 2,5625
10 SEALYNX AUTOMOTIVE ROMANIA SRL 2,5000