Business Crawls Toward an Innovation Framework

By SamGreengard

It’s hardly news that thestructure of the modern corporation is undergoing fundamental change. In orderto compete more effectively, businesses are searching for ways to managestrategic issues more effectively.

Enter the chief innovationofficer. Only a few years ago, the title seemed a bit eccentric and stilted.However, according to a global innovation leadership study conducted byCapgemini Consulting in partnership with the IESE Business School at theUniversity of Navarra in Spain, the role of the chief innovation officer can nolonger be discounted.

A survey of 260 executivesworldwide found that 43 percent of respondents have a formally accountableinnovation executive in place, compared to just 33 percent in 2011. Inaddition, 32 percent reported that building and nurturing an innovationecosystem is a top priority. "This rise of the chief innovation officersuggests driving innovation is becoming a key priority for companieseverywhere,? the report states.

On the other hand, 58 percentof companies surveyed still lack an explicit innovation strategy, and mostcompanies fall into the category of "innovation laggards." Only 30percent of respondents agree that they have an effective organizationalstructure in place for driving innovation, and only 24 percent believe thatinnovation efforts inside their companies are effectively aligned. A mere 7percent fall into the category of "innovation leaders."

Most innovation strategiescontinue to be driven from the top-down, with only 11 percent of respondentsexplicitly involving employees in the strategy development process. The CEO is stillconsidered the most important source of an innovation culture (69 percent).

"The study reveals aworrying lack of involvement of non-senior employees in the innovation processwithin most companies," notes Paddy Miller, professor of managing peoplein organizations at the IESE Business School in Barcelona. A more"bottom-up" approach that focuses on "people as the key sourceof competitive advantage" is necessary.

"It is vital to captureindividual insights from both managers and employees," Miller added.