创新系统亟需重启+Innovation+Systems+Need+a+Reboot

InnovationSystems

NeedaReboot

June2024

ByJustinManly,MichaelRingel,AmyMacDougall,JohannHarnoss,JacobWolke-Perten,

WendiBackler,KetilGjerstad,RyojiKimura,andBethViner

Contents

01

Innovationin2024

0

6ToClosetheInnovationReadinessGap,StartwithStrategy

•TheStrategicForesightImperative

•ForNovoNordiskandLilly,PersistencePaysOffintheObesityDomain

•Aptiv’sInnovationSystemIsNotonAutopilot

•Nvidia’sPathtoBecomingtheAIRevolution’sBrain

1

4

20

AcceleratingInnovationwithGenAI

AbouttheAuthors

Innovationin2024

H

ere’saparadox.Companieshaveneverplaceda

higherpriorityoninnovation—yettheyhaveneverbeenasunreadytodeliverontheirinnovationaspi-

rations.

Ourannualsurveyofglobalinnovatorsfindsthatthepan-demic,ashiftingmacroeconomicclimate,andrisinggeo-politicaltensionshavealltakenatolloninnovationdisci-pline.Facedwithhighuncertainty,leaders’focusshifted

frommedium-termadvantageandvaluecreationtoshort-termagility.Inthatenvironment,thesystemsthatguide

innovationactivitiesandchannelinnovationinvestmentssuffered,leavingorganizationslessfitfortheracetocome.

Inparticular,innovationreadiness—asmeasuredbyBCG’sproprietaryinnovationmaturityscore—isdownacrosstheelementsoftheinnovationsystemthatalignitwiththe

corporatevaluecreationagenda.Atthesametime,execu-tivesreportthatinnovationactivitiescontinueatpre-pan-demiclevels.

Thisfindingevokesatroublingpictureof“zombie”innova-tionorganizationsgoingthroughthemotionsinanendlessloopasthestrategicenvironmentshiftsaroundthem.

Withoutasharpinnovationstrategyalignedwithaclear

businessstrategy—offeringclarityontargetcustomersandthemostattractiveinnovationdomains—eventhemost

efficientandflexibleinnovationsystemwillfailtocreatevalue,particularlyindisruptivetimes.

Howtogetbackontrack?We’dargueforarebootthat

startsbyestablishing—orstrengthening—thelinkbetweeninnovationstrategyandbusinessstrategy.

Andwhenyou’rethinkingaboutrecalibratingyourinnova-tionsystemtobebothmorestrategicandeffective,don’tignoreGenAI.Withtoday’sstrongestinnovatorsalready

buildingexperiencewiththetechnology,there’sarealriskoffallingfurtherbehind.

BOSTONCONSULTINGGROUP1

InnovationPrioritizationIsUp

For18years,we’veaskedseniorinnovationexecutiveswhere

innovationranksintheircompany’spriorities.Isitatthetop,inthetopthree,oneofthetopten,orlower?Thisyeararecord

83%respondentsreportedthattheircompaniesrankinnova-tionamongtheirtopthreeareasoffocus.

(SeeExhibit1.)

Lookingatregionalpatterns,Chinaleadsonprioritization,with92%ofcompaniesrankinginnovationasatop-threepriority.Thetwolargestyear-over-yearincreasesinpriorityareNorthAmerica,whichmovedup11percentagepointsto81%,andAfricaandMiddleEast,whichmovedup10

percentagepointsto85%.Europe,CentralAsia,andtherestofAsiaallheldroughlysteadyataround80%.

Fromanindustryperspective,thehighest“topthree”rank-ing,at98%,wasTechHardware—anindustrythathaspe-

renniallybeenatornearthetop.ThelowestwasWholesaleandRetail,at67%.MediaandEntertainmentsawthebig-

gestjump—from68%in2023to94%inthisyear’sresearch.

InnovationReadinessIsDown

Ittakesaneffectiveinnovationsystemtotransformhighaspira-tionsintovaluecreation.Andthisyear’sresearchsuggeststhatawhopping97%ofinnovationsystemsneedatune-up.

WemeasuredreadinessusingBCG’sproprietary

Innovation-

to-Impactbenchmark

tool(i2ibyBCG),whichevaluatesacompany’sinnovationmaturityalongtendimensions.

Allrespondentsansweredthefullbatteryofquestions.

Organizationsanswering“yes”toallquestionsreceivedaperfectscoreof100,butweviewthosescoring80oraboveasbeinginthe“readyzone.”

Inthelasttwoyears,innovationreadinesshasplummeted,withjust3%ofcompaniesinthereadyzonetoday,com-

paredwith20%asrecentlyas2022.

(SeeExhibit2.)

Wesawthesesignificantdeclinesacrossallregions,withtheexcep-tionofChina,wherethereadinesslevelhasremained

steady.Theslumpswereparticularlystrongacrosstheseveni2idimensionsthatfocusonhowtheorganizationnurturesideasandguidesthemthroughdevelopmenttomarket:

•Ambition.Aretherespecificandaspirationalgoalslinkedtostrategyandvaluecreation?

•Domains.Dowefocusonalimitednumberofattrac-tiveinnovationdomainswherewehavearighttowin?

•Governance.Arepeopleandbudgetsalignedwithpriorities?

•PortfolioandPerformanceManagement.Isthe

portfoliorigorouslymanaged,andareinnovationdeci-

sionsandcompensationlinkedtostrategy-alignedKPIs?

•OrganizationandEcosystems.IsinnovationchampionedbytheC-suite,andaretherefit-for-purposeinnovation

teams/vehiclesfordifferenttypesofinnovationanddifferenttimeframes?

Exhibit1-ARecord83%ofCompaniesRankInnovationasaTop-ThreePriority

Wheredoesinnovation/R&D/productdevelopmentrankamongyourcompany’spriorities?(%)

+8

7979

8283

7677757677

7271

7575

66

64

6666

65

32

45

52

53

53

57

53

47

47

42

42

46

48

47

43

43

39

42

+2

19

40

23

23

25

26

24

24

22

22

23

30

35

23

33

33

33

35

200520062007200820092010201220132014201520162018201920202021202220232024

ToppriorityTop-threepriority

Sources:BCGGlobalInnovationSurvey2024;BCGanalysis.

Note:n=1,003forglobalrespondents.Nodatafor2011and2017available.

2INNOVATIONSYSTEMSNEEDAREBOOT

Since2022,innovationreadiness

hasplummeted,withjust3%of

companiesinthereadyzonetoday.

Exhibit2-InnovationReadinessHasDeclinedSignificantlySince2022

Respondentcompaniesscoring"Ready"vs."Unready"(%)

80

20

91

9

97

−17percentagepoints

3

80

20

2021202220232024

ReadyUnready

Sources:BCGGlobalInnovationSurvey2021,2022,2023,2024;BCGanalysis.

Note:“Ready”representstheproportionofcompaniesscoring80oraboveonBCG’sInnovation-to-Impact(i2i)benchmark.

•TalentandCulture.Dowehaveacultureofinnova-tion,andisinnovationseenasacareeraccelerator?

•IdeatoImpact.Dowehaveideationmethodsthatcan“seearoundcorners”andprocessestoexploreandscaleideas?

Between2022and2024,medianreadinessscoresoneachelementfellfromthemid-70stothe50s.Andcritically,topquartilereadinessscores,whichhadbeensecurelyinthereadyzonein2022,arenowatorbelowthe2022median.

(SeeExhibit3.)

ADisconnectBetweenConcernsandPriorities

Wethenaskedrespondentstorankthechallengesfacedbytheirinnovationteams.Thisyear,strategyconcerns

toppedthelist,with52%ofrespondentscitinganunclearoroverlybroadstrategyasoneoftheirtopthreechalleng-es.

(SeeExhibit4.)

Risingcostofcapitalandtalentcon-straintsfollowedat47%and44%,respectively.

Whileaddressingthelattertwochallengesisnotentirelyinthedirectcontrolofanindividualcompany,sharpeninga

strategyis.Anddoingsocanhelpwiththeotherchallenges.Astrongstrategythatenablessmartercapitalallocation

andmorerigorousfunnelmanagementwillfocusinvest-

mentonthemostattractiveinnovationdomains,makingiteasiertoearnreturnsabovethecostofcapital.

Andcompanieswithacompellingstrategyandcleartrackrecordofsuccessaremostlikelytohaveanedgeinthewarfortalent.

Unfortunately,notallcompaniesareactingontheirstrategy-relatedconcerns.Just30%reportedplanningtorevisittheirinnovationstrategies,while70%plantofocusonprocess

optimizationmoves.

It’snotacomfortingpicture.Overall,innovationFTEsandactivitylevelshaveremainedconstant.Butwithoutastra-tegicNorthStartopointtheorganizationtowardattractivevaluepools,eventhemostefficientinnovationsystemis

likelytounderperformitspotential.Andtheseniorexecu-tivesseemtofeelit:ourstudyshowedtheirself-reportedconfidenceintheirorganizations’innovationcapabilitiesdecliningalongwithreadiness.

GettingReadytoWin

Giventhesignificantdeclinesinreadiness,itmakessensefororganizationstocontinuetheireffortstostrengthentheefficiencyandconsistencyoftheirinnovationprocesses.

Butthatalonewon’tbeenoughtodrivesuperiorperfor-

mance.Achievingreal,exceptionaloutcomeswillrequire

attentiontotwocriticalareas:first,sharpeningstrategyfortheraceahead—andaligninginnovationstrategy,resourceallocation,andpipelineshapetowinintheprioritydo-

mains;second,embracingGenAItodrivegrowthandacceleratesuccessacrossthewholeinnovationcycle.

4INNOVATIONSYSTEMSNEEDAREBOOT

Exhibit3-2024’sTopQuartileInnovatorsHaveFallenoutoftheReadyZone

andAreUnderperforming2022’sMedianInnovatorsonNearlyAllDimensions

BCGi2iReadinessDimensions

2022topquartile2024topquartile2022median2024medianReadyZone

Ambition

Domains

Governance

Portfolio&performancemanagement

Organization&ecosystems

Talent&culture

Ideatoimpact

020406080100

BCGi2iReadinessScore

Sources:BCGGlobalInnovationSurvey2022,2024;BCGanalysis.

Notes:n=1,010forglobalrespondentsin2022;n=1,003forglobalrespondentsin2024.

Exhibit4-MoreThanHalfofRespondentsCiteUnclearStrategyasaTop-ThreeChallengeforTheirOrganization

Unclearoroverlybroadstrategy

Risingcostofcapital

Talentpoolconstraints

Risk-averseculture

52

Siloedinnovation

Risksoftechdisruption(e.g.,GenAI)

Lackofrobustgovernance

Dispersedinnovationfootprint

Whatarethetopthreechallengesyourcompanyiscurrentlyfacingininnovation/R&D/productdevelopment?(%)

47

44

38

29

28

21

32

Sources:BCGGlobalInnovationSurvey2024;BCGanalysis.

Note:n=1,003forglobalrespondents.Percentaretimesmentionedinarespondent’stopthreechallenges.

BOSTONCONSULTINGGROUP5

ToClosetheInnovationReadinessGap,StartwithStrategy

I

tseemsobviousthatbusinessstrategyshouldshape

innovationstrategy.Butaswesawinthepreviouschapter,morethanhalfoftheglobalinnovationleaderswesur-

veyedthisyearcitedanunclearoroverlybroadstrategyasoneoftheirorganization’stopthreechallenges.Iftheylackastrategytofocusinnovationactivitiesontherightopportu-nities,organizationsriskfallingshortoftheirpotential.

Throughacombinationofinsightandforesight,thebeststrategistsidentifytoday’sandtomorrow’smostattractivecustomersandvaluepools.Theyunderstandtheirorgani-zations’strengths—andhowthesourcesofcompetitive

advantagearelikelytoshift.Then,basedonthisknowl-

edge,theymarshalinvestmentandresourcestowarda

focusedlistofopportunitiesinwhichtheyhavethestron-gestrighttowin.

Innovationisacriticallevertorealizestrategicambition.

Butthatcanonlyhappenifthestrategyisclearandde-

tailedontheinnovationmissionormissions—“What

problemsarewesolvingforwhichcustomers?”—thatwillmaximizetheorganization’sgrowthandvaluecreation.

Whilethisisalwaystrue,inaneraofrisingratesandtalentscarcity,itbecomesparticularlyimportant.

There’salotthatinnovatorsneedtodotoregaintheir

readiness.Butonlybystartingwithstrategyandweavingitintothefabricoftheirinnovationsystemswilltheyseethegreatestpayoff.

6INNOVATIONSYSTEMSNEEDAREBOOT

TooManyOrganizationsLackDirectioninTheirInnovationEfforts

But,aswe’venoted,noteveryorganizationhasgottenthe

message.Just30%ofrespondentsthisyear,versus36%in

2022,reportedthatrefreshingtheirstrategyisoneoftheir

topthreeinnovationprioritiesgoingforward.

(SeeExhibit5.)

Instead,thefocusisonagility,activity,andcapabilities:70%plantofocusonboostingtheefficiencyandspeedoftheiroperatingmodels,63%seektoincreasethenumberof

projectsintheirportfolio,and54%areprioritizingcapabilitydevelopment.Andofthosefocusedonincreasingtheir

projectload,aboutone-thirdintendtoputtheireffortsintomoreshort-termprojects,suggestingalackofclarityor

convictiononmedium-tolong-termopportunities.

Unlessthisdisconnectbetweenexecutives’concernsand

theirorganizations’actionsisrepaired,itiseasytoimagine“zombie”innovationorganizations—lackingananimatingstrategytoconcentrateeffort,goingthroughthemotions,

pushingwhateverprojectsseeminterestingthroughtheir

funnelstosatisfyaneedforactivity.Theymayachievesomegrowth,butwilllikelyfallpreytodisruptionormissouton

themostattractiveemergingvaluepools.

Fixingthisdisconnectandpositioningtheorganizationtocaptureitsbestopportunitiesstartsoutsidetheinnovationfunction.Organizationsfirstneedasharpbusinessstrate-gythatmakescrystalclearwhat’sinscope—andwhat’s

out.Gettingtheredemandssuperiorstrategicforesighttounderstandhowtheworldischanging,wherevaluepoolsareshifting,andinwhatdomainstheorganizationhasarighttowin.(Formore,seethesidebar

“TheStrategic

ForesightImperative.”

)

Thestrategyneedstobeconcreteenoughtoidentifythe

priorityinnovationdomainsthatareexpectedtodeliver

realresultsontheorganization’sshort-,medium-,and

long-termaspirations.Innovationleadersthencanset

aboutthehardworkofinfusingthestrategythroughout

theirinnovationsystems:reallocatingresources,acquiringneededcapabilities,reshapingthepipeline,andrethinkingsuccessmetricsandtimelines.

SixBestPracticesforLinkingInnovationtoStrategy

Themostsuccessfulorganizationsaligntheirinnovationsystemstotheirbusinessstrategiesinsixcriticalways.

We’llillustratethroughtheexampleofleadinginnovatorTataGroup:

Exhibit5-CompaniesArePrioritizingEfficiencyandThroughputattheExpenseofStrategy

Lookingaheadatthenextyearandbeyond,whatactionsdoyouplantotake?(%)

70

63

54

3130

Updateinnovationoperatingmodel

Expandinnovationportfolio

Growinnovationcapabilities

Embraceagileteaming

Refreshinnovationstrategy

Sources:BCGGlobalInnovationSurvey2024;BCGanalysis.Note:n=1,003forglobalrespondents.

BOSTONCONSULTINGGROUP7

TheStrategicForesightImperative

Youhavetoseeanopportunitybeforeyoucanseizeit.Youhavetospotariskbeforeyoucansidestepit.Andorgani-zationswithsuperiorstrategicforesighthaveasignificantcompetitiveadvantage,particularlyinuncertaintimes

whentraditionalforecastingapproachesbasedonextrapo-lationfromthepastareunlikelytodelivervaluablein-

sights.

Ratherthanlookinginward,organizationsthatarefore-

sightleaderslookacrossanuncertainlandscapeandscanthehorizon.Theyareabletoseparatesignalfromnoise

anddevelopaperspectiveonwhatmightbenext—and

imaginetheirroleinthosefutures.Theydon’tknowexactlywhatwillhappen,butthey’repreparedforwhatmight.

Theirsuperiorperceptiongivesthesecompaniesanedgeinidentifyingandrespondingto,amongothers:

•Criticalshiftsincustomerprioritiesandsentimentthatrequirenewvaluepropositions

•Anunexpectedandattractiveadjacentmarketthatcoulddriveanewwaveofgrowth

•Anewtechnologywiththepotentialtodisruptbusinesseconomics

•Anattractivepartnershiporacquisitioncandidatethatcanaccelerateprogresstowardastrategicobjective

•Weaksignalsofnewmovesbycompetitors—ortheriseofpotentiallyadvantagedupstarts

Thebestorganizationsbringtogetheradvancedanalytics

andstrategiccreativitytobuildaforesightadvantage:Ana-lyticstosurfacepatternsandspotanomalieswithindiversesourcesfromsocialmediatoscientificliterature.Earnings

callstopatentcitations.Analystreportstosmartmoney

flows.Andcreativity,scenarioplanning,andwargamingto

expandthethinkingandimaginetheimplications.Which

newopportunitiesmightemerge?Forwhatpotentialfuturesdoweneedtoprepare?Howdowebuildresiliencetopoten-tialnewrisks?Howmightcompetitorsreact?

Foresightleadersmakethisdisciplinecentraltotheir

cultureandnotjustamoduleboltedontotheirannual

planningprocess.Theyunderstandthecriticalassump-

tionsbehindtheirstrategyandthefoundationsoftheir

competitiveadvantage.Andtheycontinuallyscanfor

potentialdisruptionsoraccelerators—sometimesviaa

centralforesightteamstaffedwithexpertsandsupportedbytechnology,sometimesbyempoweringthebroader

organizationtosenseweaksignalsandchallengethestatusquo,andsometimesboth.

Inoneexample,in2011BCG’s

CenterforGrowthand

InnovationAnalytics

(GIA)helpedaleadingsemiconductorequipmentcompanythatwasfacingslowingmarket

growthidentifyanunexpectedadjacencybyanalyzing

patent-citationnetworks.Thecompany’sexpertisein

movingmaterialsinavacuumatultra-lowtemperatures

couldbeofhugevalueinhumantissuehandling—ahighlyfragmentedmarket.Byminingstartup,investment,and

patentdata,GIAidentifiedpotentiallyattractiveacquisitioncandidatesthatacceleratedthecompany’ssuccessful

moveintolifesciences.Today—afterthe$3billionsaleoftheoriginalsemiconductorbusinesstoprivateequity—thepure-playlifesciencesbusinessisthemarketleader,witha$3billionmarketcap.

8INNOVATIONSYSTEMSNEEDAREBOOT

•SeniorExecutiveOwnership.Innovationischampi-onedbytheCEOorotherprominentmembersofthe

C-suite.AtTataGroup,executivechairmanNatarajan

Chandrasekarandrivesinnovationfromthetopdown

withafocusonthreeprinciples:thinkandaspirebig;

directionfirst,velocitynext;andcompanyvaluesbeforemarketvaluations.Andthecompanyisdefinitelythink-ingbig—planningtodeploy$120billionininvestmentbetween2022and2027.

•ClarityonInnovation’sRole.There’sasharedstoryonthepurposeofinnovationandhowitsupportsthecompany’sstrategicdirection.AttheTataGrouplevel,thatstoryisallaboutacceleratingIndia’sdevelopmentandindustrialbaseinimportantareaslikeautomotiveandsemiconductors.

•FocusonCompetitiveAdvantage.Theorganization

explicitlyfocusesonopportunitieswhereithasaclear

righttowinbasedonitsuniquestrategicassets.AsIndia’slargestconglomerate,Tatahasmanyadvantages,amongthemabrandthatattractstoptalent,strongaccessto

capital,andsignificantfreecashflow.Thecompany’srep-utationandscaleenableittotakeonchallenges—suchasthedevelopmentofanIndiansemiconductorindus-

try—thatwouldbeoutofreachtomanyothers.

•ClearlySpecifiedDomains.Theinnovationportfolioiscenteredonspecificinnovationareasthatsupport

theoverallbusinessstrategy.Chandrasekaranclearly

communicatestotheorganizationthat“somebetsareforus,somebetsarenot.”Thecompanyhasidentifiedcrosscuttingthemes,includingsustainabilityanddigital,withinwhichtheymaketargetedinvestmentsintospe-cificdomains,suchaselectricvehicles(EVs)and5G.

•TargetPortfolioStructure.Innovationleadershiphas

avisionforhowtalentandresourcesshouldbedeployedagainstdomainsandacrosstimeframestofulfillthe

organization’sstrategicambitions.Whenhetookthereinsasexecutivechairman,Chandrasekaranworkedwithdivi-sionleaderstoharmonizetheportfoliotofocusonaset

ofclarifieddomains.AndeachdivisionofTataisexpectedtobalanceitsinnovationportfoliobetweenprojectsoffer-ingimmediateprofitsandattractivelonger-termbets.

•QuantifiedObjectives.Theorganizationhasacon-

crete,fact-basedperspectiveonhowinnovationactivitieswillcontributetoitsfinancialobjectives.Anditalsohascleartimelinesandananalyticalapproachtoquantify-

ingrisk.Forexample,TatasetambitioustargetstohelpitdriveIndia’snationalgoalofhavingEVsrepresent30%ofdomesticvehiclesalesby2030.Theseclearlystated

objectiveshavehelpedTatabecomeIndia’sleadingEVsupplier,with75%marketshare.

About48%oftheexecutiveswesurveyedfeltthattheir

organizationmadesomeefforttolinktheirbusinessandinnovationstrategies—butonlyabout12%reportedstronglinksthatweredeliveringrealimpact.

Exhibit6

showsthatthe12%ofcompaniesclaimingstronglinkswerealso

dramaticallymorelikelytoembracethesixbestpracticesthanthosereportingnolinkage.Butevenamongthese

companies,there’sroomforimprovement.Thetwothatareleastembraced—establishingatargetportfoliostruc-tureandquantifyingobjectives—aretheonesthattrulylinkambitiontoaction.

Gettingtoatrulystrategicandeffectiveinnovationsystemisaboutembracingallsixbestpractices—anddoingso

paysrealdividends.

Exhibit7

showsthatthe33%ofour

samplethatincorporatedfourormoreofthesixoutper-

formthemedianpercentageofsalesfromnewproducts

reportedbyrespondentsby5percentagepoints.Incorpo-ratingonetothreeconferrednobenefit,whilethe24%

thatembracednoneoftheelementsunderperformedby5percentagepoints.

Tataisnottheonlyleadingcompanyshowingthewaytolinkstrategyandinnovation.Thisyear’sreportofferssto-riesofthreeothercompanieswinningthroughthelinkageofbusinessandinnovationstrategies:

•NovoNordisk’sandEliLilly’slong-termcommitmentstodiabetesinnovationpositionedthemtocapturelead-

ershippositionsinanti-obesitymedications.(Seethe

sidebar

“ForNovoNordiskandLilly,PersistencePaysOff

intheObesityDomain.”

)

•AutomotivesupplierAptivhasembracedastrategy-ledandhighlyrigorousinnovationportfoliomanagement

approachtoensureitsucceedsinnavigatingtherapidevolutionofmobility-relatedtechnologies.(Seetheside-bar

“Aptiv’sInnovationSystemIsNotonAutopilot.”

)

•AIchipgiantNvidiaisnowtheworld’sthirdmostvalu-ablecompany.Itgottherebystayingtruetoitspassiontoenableacceleratedcomputing—whileremaining

flexibleonthebestpathtothatgoal.(Seethesidebar

“Nvidia’sPathtoBecomingtheAIRevolution’sBrain.”

)

W

hilethisyear’sresearchfindsthatglobalinnovators

needtotuneuptheirinnovationsystemsacrosstheboard,strategyistheplacetostart.It’stheonlywayto

ensurethattheorganization’seffortsaredirectedtowardtheprojectsthatwillhelpitachieveorretainlong-termmarketleadershipandcreateexceptionalvalueforits

stakeholders.

OnelikelypriorityinvestmentareaformanycompaniesisembracingGenAInotonlyasawaytoenhancetheeffi-

ciencyoftheirinternalfunctions,includinginnovation,butalsoasakeydifferentiatorandenablerofnewproducts,

services,andbusinessmodels.

BOSTONCONSULTINGGROUP9

Exhibit6-OrganizationswithaStrongLinkBetweenBusinessStrategyandInnovationStrategyAreMoreLikelytoExhibitSixBestPractices

Percentofrespondentsexhibitingbestpractice(%)

+61

+64

+59

+43

+52

+53

84

83

82

78

61

69

30

22

20

20

18

18

Seniorexecutiveownership

Clearsenseofpurpose

FocusoncompetitiveSpecifiedTargetportfolioQuantified

advantagedomainsstructureobjectives

Reportedlinkbetweenbusinessstrategyandinnovationstrategy

None

Strong

Sources:BCGGlobalInnovationSurvey2024;BCGanalysis.

Notes:n=124forstronglink;n=525fornolink.Numbersmaynotsumduetorounding.

Exhibit7-OrganizationsAdoptingFourorMoreBestPracticestoLinkBusinessStrategyandInnovationStrategySeeMoreSalesfromNewProducts

Numberofbestpracticesadopted(outofsix)

Shareofsalesfromnewproducts,differencefromoverallmedian(%)