What’s Stopping Companies Innovating – And How Can They Fix It?

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I cover consumer-centric insights and analytics that provide executives with solutions needed to drive strategy. I am the CEO of Prosper Business Development where, for more than 20 years, we have provided market leadership and developed contemporary solutions to help Fortune 500 companies navigate change that impacts their business.

It feels like we live in a world where companies are constantly innovating, but how can they be sure they’re investing in the right areas? To find out we spoke to innovation expert Ben Thuriaux-Aleman, a partner at management consultancy: Innovation is vital on two levels. First, in increasingly crowded and competitive markets it is essential to differentiate and provide customers with products and services to meet their changing needs. That drives profitability and growth.

Firstly, leaders invest in breakthrough innovation management, creating completely new products and services, as well as entering new markets. This generates greater revenues and higher margins but does require a longer-term investment focus. Thirdly, leaders perform consistently when it comes to how they manage R&D across different business units. Astonishingly we found enormous differences in innovation performance between multiple business units in the same company, leading to an estimated 5% gap in revenues from new products and services. Successful harmonization of practices is often a cultural issue and requires senior management involvement and an approach that builds trust and aligns incentives.

 

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