A survey of more than 500 companies by Accenture highlighted that despite significant investment by mature organizations into innovation initiatives, a small majority of senior executives (18 %) believe their company’s innovation efforts are adding up and creating competitive advantage for the firms. This means that 82% of executives perhaps do not see value in investing in these initiatives as the ROI is extremely low.
According to the report titled “Why Low Risk Innovation is Costly“, the findings suggest that among the main reasons that innovation results fall short are too much “renovation” in place of breakthrough ideas, and too much “invention” against the challenge of commercializing at scale.
Innovation is not working out the way many companies expected. Despite increasing commitment, funding and organizational accountability, many companies are disappointed by the returns they are deriving from their investments. Correspondingly, they are scaling back expectations. Instead of the disruptive products, services, and business models that were anticipated several years ago, many initiatives have become considerably more limited in scope. Rather than offering “the next big thing,” innovations coming to market today are more typically line extensions. ~ Accenture Report