3 Factors Innovative Companies have in Common
Companies identified by Boston Consulting Group as breakthrough innovators – just 7.6% of the report’s sample – separate themselves even from those labeled as strong innovators through three key actions: (1) They cast a wider net for ideas. The best innovators are more likely to generate new products or ideas for growth from internal sources, from mining social networks or data, and from suppliers or vendors. (2) They use business-model innovation more often. Breakthrough innovators are more likely to move from selling products to selling products embedded in a service. Making that move requires shifting the way an organization thinks about its business model. (3) They have cultures geared toward breakthrough success. Breakthrough innovators have a variety of metrics by which to measure success, but they go beyond that by focusing on finding and keeping the right talent and prioritizing ideas for development. That’s in contrast to weaker innovators, who “are concerned with funding ideas and moving them through the process,” the report said.