How successful organizations drive innovation

• Published in: Strategy & leadership 2016-05, Vol.44 (3), p.9-19
• Main Authors: Ikeda, Kazuaki, Marshall, Anthony
• Format: Article
• Language: English
• Subjects: Automobile industry; Brand loyalty; Business models; Collaboration; Crowdsourcing; Culture; Efficiency; Environmental economics; Food; Innovations; Leadership; Product lines; Protein folding; Teams; Value creation; Vehicles
• ISSN: 1087-8572; 1758-9568
• DOI: 10.1108/SL-04-2016-0029

Purpose The authors analyze IBM research and outline how the most successful established organizations approach innovation and prescribe specific strategies that can help all organizations innovate like an outperformer. Design/methodology/approach In a 2014 survey of more than 1,000 C-suite executives and their direct reports, we found that the most successful organizations approach innovation differently. Findings The top six percent of organizations in both operating efficiency and revenue growth pursue distinct strategies in innovation organization, culture and process. Practical Implications For today’s business leaders, innovation blends the art and science of anticipating the future. It requires understanding what the full potential of new technologies will be, of knowing what customers need and want, even before they know it themselves. And it requires building organizational and ecosystem-wide capabilities to execute and deliver. Successful organizations align innovation activities with business objectives, and they are not afraid to experiment. Originality/value Outlines the best practices of the most successful innovators. For example, these, organizations align innovation activities directly with business objectives, pursue “open” innovation structures and create specialized innovation teams. They also source new ideas from diverse locations, often leveraging big data and analytics; innovation is funded separately and measured rigorously.