More companies say innovation is a top-three CEO priority. Many are allocating the resources to prove it. But are they prepared to deliver?
Even the Most Innovative Companies Have a Hard Time Staying That Way
Successful Serial Innovators Get Three Things Right
1. They “Walk the Talk”
Innovation success starts with commitment—making innovation a priority and investing decisively behind that ambition. And boldness—being willing to pursue opportunities beyond your core. While 60% of companies rank innovation as a top 3 priority, not all walk the talk.
45%
of companies both prioritize and invest in innovation
25%
of companies find investment is out of sync with priority level
2. They Embrace the Benefits of Scale
Despite the conventional wisdom, larger companies pre-COVID-19 were not statistically disadvantaged on innovation versus smaller rivals. There are reasons to believe larger companies may now have an edge in developing winning products, services, and business models.
40%
of large companies are above their industry median for the percentage of revenue from new products and services
15%
of innovation leaders are more likely to make business model innovation a priority
3. They Calibrate Their Innovation Systems for Success
You need a well-tuned system to drive a cycle of perpetual success. Ensuring that the “machine that makes the machine” embraces best practices and is internally consistent across all dimensions is essential.
Authors
Featured Content
Capability
Innovation is extremely difficult—but also necessary. We collaborate closely with organizations on holistic innovation journeys to help them secure long-term competitive advantage.
Each year BCG creates its Most Innovative Companies report. Read on to learn the key themes of the Most Innovative Companies report this year and in years past.
BCG’s latest innovation survey surfaces some big trends. Strong innovators are extending their edge over weaker rivals by embracing AI—in their products and services as well as in how they create them. They’re also increasingly looking to platforms and ecosystems as a way to benefit from external data, ideas, and capabilities. And there are some interesting shifts in this year’s roster of the 50 most innovative companies.