McKinsey & Company released their latest Global Survey ÔÇô this one focused on Innovation and Commercialization.┬á There were many significant highlights from their research.┬á Below are a few that stood out for me.
50% of businesses expect to achieve growth outside of their core business ÔÇô 32% by growing beyond the boundaries of the core business and 16% by growing as a result of adjacent opportunities.┬á In either case half of the companies surveyed are looking outside their comfort zone for growth.┬á What is problematic with this goal is that most companies donÔÇÖt change their process for inputs.┬á Or, in other words, companies don’t change how they generate innovative ideas and collect data about the likelihood for market success for new innovations.┬á It’s the same one day fly in – brainstorm – prioritze – fly out process that regurgitates all the projects that were previously killed. Garbage in, bad products out.
Over 60% of companies acknowledged that they are not good at commercializing new products or services.┬á The challenge McKinsey identified appears to be in handing off ideas to those who would convert these ideas to commercially viable products.┬á Companies appear to have a significant talent gap in finding folks who can translate vision into realityÔÇªthatÔÇÖs not surprising since most folks are good at one or the other.┬á But it may also be a factor of garbage in, bad products out.
Another issue associated with the successful handoff of new ideas to market reality is picking the winners; 43% said their top challenge was choosing which ideas to move forward.┬á Not surprisingly 40% use an ad hoc process to make these commercialization decisions and 77% do not address these decisions at corporate leadership meetings as a regular agenda item.┬á New ideas don’t just surface during the annual strategic planning process – this needs to be well-funded ongoing initiative.
Vision & Execution has experience helping companies improve their inputs.┬á We run innovation workshops that help shake up corporate mythology about what business a company is really in.┬á When you rethink the way you define the business youÔÇÖre in, you increase your clarity about where to expand your business.┬á We also help companies use the plethora of web-based solutions designed to actively engage customers and innovators outside the organization to vet or enhance new ideas.┬á And lastly, we help companies implement expedient ways of sizing and categorizing market opportunities to help senior management prioritize which products or pieces of a product to bring to market first.