Tuesday, May 01, 2012
" Innovation Portfolio " by Bansi Nagji
" On innovation portfolio " by Bansi Nagji.
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Management knows it and so does the Wall Street : the year to year viability of a company depends on its ability to innovate. Given today's market expectations, global competitive pressures and , the extent and pace of structural change, is truer than ever ! But CEO s struggle to make the case to the street that their managerial actions can br relied on to ield a stream of successful offerings. many admit to being unsure and frustrated. They are aware of a tremendous amount of innovation going on inside their enterprises but don't feel they have a gregrasp oon all the dispersed initiatives.
The pursuit of the new appears haphazard and episodic, and they suspect the returns on the company's total innovation investments are too low.
Making matters worse, executives tend to respond with dramatic interventions and vacillating strategies ! Take the example of a consumer goods industry we know ! Attuned to the need to keep its brands fresh in retailers and consumers minds, it introduced frquent improvements to its core offerings. Most of those earned decent income with decent margins. Over time, however, it became clear that, all this product proliferation, while splitting the revenue into even smaller slices, wasn't growing the pie . Eager to earn a much higher return, the management lurched towards a new strategy aimed at --- transformational rather than incremental innovations !
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Management knows it and so does the Wall Street : the year to year viability of a company depends on its ability to innovate. Given today's market expectations, global competitive pressures and , the extent and pace of structural change, is truer than ever ! But CEO s struggle to make the case to the street that their managerial actions can br relied on to ield a stream of successful offerings. many admit to being unsure and frustrated. They are aware of a tremendous amount of innovation going on inside their enterprises but don't feel they have a gregrasp oon all the dispersed initiatives.
The pursuit of the new appears haphazard and episodic, and they suspect the returns on the company's total innovation investments are too low.
Making matters worse, executives tend to respond with dramatic interventions and vacillating strategies ! Take the example of a consumer goods industry we know ! Attuned to the need to keep its brands fresh in retailers and consumers minds, it introduced frquent improvements to its core offerings. Most of those earned decent income with decent margins. Over time, however, it became clear that, all this product proliferation, while splitting the revenue into even smaller slices, wasn't growing the pie . Eager to earn a much higher return, the management lurched towards a new strategy aimed at --- transformational rather than incremental innovations !
