Innovation ambition at healthcare organizations does not match up with execution, and it’s hindering innovation’s impact on creating value.
According to Accenture’s 2016 Healthcare Innovation Research, leaders of healthcare companies are increasingly likely to view innovation as an enabler of long-term success, with 79 percent of providers and payers stating they are extremely or very dependent on innovation to determine organizational strategy.
Companies are thinking big—exploring new and novel approaches, offerings and services. The problem is, their innovation output is low, focused on incremental product and service improvements. Sixty-seven percent of participants report their organizations fail to produce disruptive innovation. Both payers and providers want a big breakthrough, but many are going about it all wrong.
A majority (84 percent) of healthcare organizations are looking for the next “market shifting innovation.” In other words, they are seeking disruptive innovation, yet only 26 percent say that their primary goal for innovation is to disrupt the current market by creating a new process or business model. Organizations are taking innovation baby steps, as opposed to big leaps, because they are not fully committed. Seventy-one percent say they tend to pursue product line extensions rather than new innovation. Half say their organizations struggle to learn from their mistakes, and 68 percent say their organization is risk averse with new ideas.