  Innovation is a top priority for companies seeking to grow in the wake of the economic downturn, but flaws in managing innovation may hinder their progress. Research goes further to suggest that in the US and UK many companies had in fact increased funding for innovation during the downturn, demonstrating its perceived business value as a driver of growth. However, poor returns on investment will continue to be achieved until companies are systematically managing innovation with the same rigor and discipline as other critical business processes.
To further understand how companies are addressing innovation in this economic climate, Accenture conducted an online survey of more than 630 executives in May, 2009 in the United States and United Kingdom. Respondents represented a broad cross-section of industries – including automotive, banking, capital markets, consumer goods and services, electronics and high tech, insurance, manufacturing, pharmaceutical and medical products, and retail.
Key Findings
According to this Accenture research, almost half of respondents said they increased funding for innovation in the preceding six months, while one-third said there was no change in funding for innovation. Additionally, nearly nine out of 10 these respondents said that innovation is as important, if not more important, than cost reductions to their company’s ability to achieve future growth. However, the Accenture study found flaws in corporate management of innovation, including process shortcomings and a lack of business discipline that result in internal barriers to success. Additionally, there is widespread risk-aversion and a failure to learn from past mistakes. Past innovation failures are most commonly attributed to incorrect pricing, failure to meet customer needs, and being late to market, which can be mitigated by approaching innovation with the appropriate structure and rigor. If you would like more information about our research, please call us toll-free at 1 (877) 889-9009 or send us an e-mail. Outside the United States and Canada, please dial 1 (312) 737-8842. Related Content To receive Accenture’s latest insights directly, sign up for My Outlook, Accenture’s bi-weekly newsletter that is personalized based on your business and industry interests.  To Top
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