Daily Management Review

The most innovative companies of 2016


01/12/2017


BCG published a new study called "The Most Innovative Companies 2016: Getting Past "Not Invented Here". The paper suggests that companies increasingly need to find a balance between internal and external innovation, overcoming aspiration to reject "foreign" inventions.



Haldane Martin
Haldane Martin
The list of companies is multinational: 34 of innovators came from the United States, 10 - from Europe and 6 - from Asia.

Since 2004, BCG has surveyed over 1 500 senior executives in the field of innovations from different countries and a wide range of industries, to get an idea about state of innovation in business.

The report is essentially a list of 50 companies that top managers around the world rated as the most innovative. The top five of them are Amazon, Microsoft, Tesla Motors, Google and Apple.

"Given increasing pace of market developments and the fact that the technology becomes a key factor even in the more traditional sectors, seeing outside inventions as "strangers" can be fatal, - commented Andrew Taylor, partner of BCG and coauthor of the report. – Today, the most successful innovators are finding a strategic balance between internal and external innovation. They are showing wisdom and effectiveness in searching and scanning external ideas, and are acting with lightning speed when introducing them in their companies."

According to the report, the difference between the most active innovators and laggards lies in search for external development.

Active innovators implement a more analytical approach. According to available data, they have found 65% of new ideas through social networks and analysis of large data (compared to only 14% in inactive companies).

Active innovators are also flexible in the way they are innovating. For example, 66% of respondents told that their companies often find new ideas through external partnerships (compared to 22% in weak innovators).

Partner BCG and coauthor of the report Michael Ringel said: "We can see that innovators are increasingly using advanced analytics to look for key technologies. They acquire licenses, search acquisition targets and enter into partnerships that allow them to reduce development cycles and beat the competition".

Companies, wishing to take advantage of external innovation, use a number of structural and cultural techniques to implement external ideas in their business.

"Leading innovators overcome rejection of "alien" inventions by structural and cultural change, - says partner of BCG and coauthor of the report Hadi Zablit. – Apart from traditional approaches, such as joint ventures, they use more modern, such as a corporate venture capital and incubators and develop a more open culture with help of incentives and management".

The published data support this view. For example, 62% of companies among the active innovators have used incubators (compared to only 13% among non-active innovators). 80% of active innovators have also reported that their organizations are open and ready for cooperation (compared to 22% among non-active).

source: bcg.com






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