Advancing Innovation. Patrick J. Stroh
Location. Where is your business unit primarily located?
| No. | % | |
| United States | 138 | 50.9% |
| Middle East | 65 | 24.0% |
| Asia/Pacific | 45 | 16.6% |
| Europe | 13 | 4.8% |
| Africa | 6 | 2.2% |
| Canada | 3 | 1.1% |
| Not answered | 1 | 0.4% |
| Total | 271 | 100.0% |
Revenues. What is your organization’s annual revenues (or budget, if it’s a nonprofit or governmental entity) in U.S. dollars?
| No. | % | |
| $0–$5 million | 47 | 17.5% |
| $5 million–$100 million | 104 | 38.8% |
| $100 million–$1 billion | 52 | 19.4% |
| $1 billion–$5 billion | 28 | 10.4% |
| $5 billion+ | 37 | 13.8% |
| Total | 268 | 100.0% |
10 Key Findings
Below is a list of the 10 key findings from the IMA research. The full survey can be found in the Appendix, including the respondents’ demographics and the results for each question. Salient points will also be referenced throughout the book as they are relevant to the specific discussion.
1 92% of respondents said their organization should measure and govern innovation regularly as a key business process to sustain growth and value Yes, innovation is important!
2 75% said they needed to significantly evolve or reinvent their business value proposition every five years at minimum to maintain relevance and market value. The longevity of your value proposition is shrinking, and it must be updated faster than in the past.
3 37% said they needed to evolve/reinvent their value proposition not just every five years, but every one to three years. Some industries are changing faster than others, but let’s be clear, we are ALL changing faster now than at any other point in history.
4 57% said they don’t formally measure innovation success/value 92% see the value in measuring innovation, but almost 60% don’t do it—likely because innovation is hard to measure or they don’t know how.
5 67% of senior finance and accounting professionals now support innovation in some fashion vs. only 35% 10 years ago Finance leaders are being asked, but do they have the skill set to support and lead innovation?
6 Respondents predicted that number to go up six more percentage points to 73% in just another three years! If you’re a CFO or senior finance and accounting leader and haven’t yet been asked to support or lead innovation, you soon will be!
7 Only 52% of companies get innovation ideas from their employees, and 31% get innovations from their suppliers—while 43% and 40% would like to get ideas from these sources, respectively, but are not doing so. Where are organizations getting innovation ideas from, or are they simply not asking anyone?
8 When asked if innovation discussion should occur in the normal business processes of budgeting, capital planning, operational reviews and/or strategic planning—responses were 69%, 64%, 69%, and 88%, respectively, that innovation discussion should be occurring in those forums throughout the business as it currently operates. Innovation needs to be embedded in the organization, not implemented and conducted separately.
9 When asked where they would need the most innovation improvement support to lead and support innovation, 60% of respondents said they would need help in all three named areas (Galvanizing, Enabling, and Measurement). There is much work to do, but this book will help show you how.
10 Respondents’ industry, location, or company size had little statistical impact on the survey responses and trends. The trends transcended all demographics.
The diversity in the participants’ industry, size, and geography make for truly global, all-inclusive findings. As you read about the collective thoughts of the participants throughout the book, note many of the similarities in their responses and insights. Innovation is an important issue everywhere.
HOW THIS BOOK IS ORGANIZED
This book is divided into four parts. Part I introduces the idea that every business needs to innovate, and the three chapters that make up this section focus on the concept of “innovation governance” and why that term is not an oxymoron but extremely relevant and important. They address the concept of “important innovation”—because not all innovation is necessarily important and can be distracting and dilutive to the business rather than helpful and accretive. Lastly they’ll identify some of the roles and responsibilities for those who need to support and/or lead innovation initiatives in their organizations. Chapter 3, in particular, may be an eye opener for the senior finance and accounting professionals—as you see just how well-suited you are to support and lead innovation efforts. This section is geared toward the office of the CFO and senior finance and accounting professionals, but if that is not you, there is still relevance in reading through these traits and the strengths required to be successful in innovation.