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The boring story on Innovation

November, 2010Wouter KoetzierManaging Director Innovation Consulting

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>80% of corporate executives are unhappy with their company’s innovation

In a survey of 639 companies, executives cited (1) lack of customer relevance and (2) speed to market as the top two drivers of innovation failure.

Source: Accenture Innovation Survey, 2009

Our product or service cost was too high

We encountered regulatory / quality issues

We forecasted incorrectly

We encountered supply chain issues

Customers find no new or unique value proposition

The product of service is priced in-correctly

The product or service is late to market

Failed to meet customer needs

54%

63%

Among Top 2 Reasons Cited

Lack of market success driven by: Inability to develop quality,

market-relevant ideas and concepts

Insufficient connection to consumers

Fear of failure

Being late to market driven by: Too many in-flight innovation projects

Too much innovation risk

Too much waste

Underdeveloped innovation capability

“I love this room, so many happy memories of killing innovation…”

So, should Corporates leave Innovation to Start-Ups?

Instilling Innovation as a Capability

Locations

Divisions or Brands

Consultants,Academia,

Trustedpartners

Business Functions

R&D Centers

F/e Open Innovation, actually is a radical innovation of how Innovation is done

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“Closed” innovation systems drive long lead times:– Reliance on expertise which exist only within the

organization, functional department, or business unit– Missed opportunities to leverage existing solutions

from other industries and/or functional areas – Quality of innovation is limited to internal, captive

expertise and knowledge

As a result, over time the innovation process stagnates and increasingly yields incremental improvements based on the same internal knowledge and expertise.

By opening up the innovation process to external (and internal) collaborators, the speed of solution identification and the quality of solutions are greatly enhanced.

Locations

Divisions or Brands

Consultants,Academia,

Trustedpartners

Business Functions

R&D Centers