Keynote presentation from the breakfast seminar.

1. INNOVATE OR FADE

3. Disruptive innovation Incremental innovation Structural”innovation”
M&A

4. DEFINE INNOVATION

5. BACKGROUND AND
PURPOSE OF THE STUDY

6. § To understand how Swedish companies work with innovation with the
purpose to help organizations better understand various aspects of
innovation capabilities, strategies and execution.
§ The aim is to highlight the biggest success factors and pitfalls to give
organizations hands on tips in how to improve their innovation
capabilities.
PURPOSE WITH THE STUDY

7. ABOUT THE STUDY
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
0-­‐50
51-­‐500
500+
How
many
employees
does
your
company
have?
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
0-­‐100
101-­‐1000
1000+
What
is
your
company's
annual
revenue
in
millions
SEK?
Responses: 101 Swedish companies

8. TOP LEVEL FINDINGS

9. INNOVATION IS A BIG
DEAL FOR SWEDISH
COMPANIES

10. INNOVATION IS A BIG
DEAL FOR SWEDISH
COMPANIES
More than 70% of the
companies says that
innovation will become
more important in the
upcoming years.
60% state that
innovation has been
crucial factor in terms
of its business success

11. INCREASING COMPETITION

12. 40% OF THE COMPANIES
HAVE AGGRESIVE
GROWTH AMBITIONS
OVER THE NEXT YEARS

14. ONE THIRD OF THE
COMPANIES ARE STATING
THAT 11-20% OF FUTURE
REVENUE WILL COME
FROM INNOVATIONS.
12% of the companies are
expecting that more than
50% of revenue will
originate from innovations.

15. 60% HAVE AN
HISTORIC INNOVATION
SUCCESS RATE THAT
IS AS EXPECTED
20% experience
success rates higher
than expected.

16. IN 2000 ONLY 15% OF ITS
INNOVATION EFFORTS MET
PROFIT AND REVENUE
TARGETS. TODAY THE
FIGURE IS 50%.

17. 70% OF THE PARTICIPANTS
VIEW THEMSELVES AS
BETTER ON INNOVATION
THAN THEIR PEERS.

18. ONLY ABOUT 10% OF THE
COMPANIES USES
STRUCTURED PROCESS IN
THEIR INNOVATION EFFORTS

19. AND MOST SEEMS
TO BE LOST
WHEN IT COMES
TO EXECUTION

20. 0
1
2
3
4
5
Systema3c
process
to
generate
ideas
Systema3c
process
to
priori3ze
ideas
Management
focus
Knowledge
Organiza3onal
culture
Financial
funding
Ability
to
bring
ideas
to
the
market
Alloca3on
of
responsibili3es
Ability
to
measure
Time
Elements
of
innova<on
execu<on

21. HUBRIS?
”ON THE SURFACE, IT'S NOT A BIG
PROBLEM THAT WE TEND TO
OVERESTIMATE OUR OWN ABILITIES.
HOWEVER, WHEN WE'RE BLISSFULLY
IGNORANT OF OUR SKILLS, WE CAN'T
WORK TOWARD IMPROVING THEM.”

22. 0
1
2
3
4
5
Systema3c
proccess
to
generate
ideas
Systema3c
proccess
to
priori3ze
ideas
Ability
to
bring
ideas
Alloca3on
of
responsibili3es
Culture
Financial
Fund
Ability
to
measure
Company
Revenues
and
Execu<on
Elements
< 100 million SEK
> 100 million SEK
DIFFERENCES BETWEEN SMALL AND LARGE
ORGANISATIONS

23. SUMMARY
§ The companies in the study seem to be highly innovative and
expecting innovations to be a great part of future revenue.
§ But on the same time they handle innovation as an informal
process without any tools, processes and structures in place.

24. SO WHAT DIFFERENTIATES
INNOVATION PIONEERS
FROM LAGGARDS?

25. Informally
Quite
formally
Highly
structured
Innova3on
Pioneers
32%
55%
13%
Innova3on
Laggards
39%
50%
11%
0%
10%
20%
30%
40%
50%
60%
Innova<on
process:
Pioneers
vs.
Laggards

26. THOSE WHO REGARD
INNOVATION AS IMPORTANT
PERFORM BETTER THAN
THOSE THAT DON’T.

27. 0
1
2
3
4
5
Innova3on
pioneers
Innova3on
laggards
How
important
has
innova<on
been
for
the
success
of
your
company
un<l
today?

28. - Innovation pioneers
- Innovation laggards
0%
10%
20%
30%
40%
50%
60%
70%
80%
Lower
than
expected
As
expected
Higher
than
expected
Innova<on
pioneers
vs
laggards:
Historic
success
rate

29. - Innovation pioneers
- Innovation laggards
0
1
2
3
4
5
Management
focus
Ability
to
measure
Time
Innova<on
pioneers
vs.
laggards:
Execu<on
elements

30. THE BIGGEST DIFFERENCE
BETWEEN PIONEERS AND
LAGGARDS LIES IN THE
BRAND

31. 0
1
2
3
4
5
Innova3on
pioneers
Innova3on
laggards
Our
company
has
a
brand
strategy
that
is
clearly
defined
in
how
we
create
differen<a<ng
value
for
our
customers.

32. SUMMARY – INNOVATION PIONEERS
§ Use their brand to drive innovation.
§ Have higher management focus.
§ Know how to measure efforts and results.
§ Have processes to be more effective with the time they have.

33. NO MATTER WHAT,
INNOVATION WILL BE
KEY MOVING FORWARD

34. WHAT CAUSE ONE IDEA TO TAKE ROOT WHILE
ANOTHER IDEA IS ABANDONED?
§ Only in storybooks do inventions comes like thunderbolt
§ Innovation = an idea transformed into customer value
§ Research repeatedly shows that coming up with breakthrough ideas is
the easy part
§ The hard part is turning ideas into advances that are practical to
implement – practical not only technically, but also commercially
§ Research repeatedly shows that what makes the difference between an
idea and an innovation, is the ecosystem or the lack of it.
You sit under a tree, an apple falls
on your head, et voilà, you discover
gravity.

35. TIP NUMBER 1 – USE YOUR BRAND!

36. TIP NUMBER 2 – WIDER PERSPECTIVE ON
INNOVATION

37. TIP 3 – MANAGEMENT FOCUS AND CULTURE

38. TIP 4 – PLAN LESS, INTERACT MORE

39. THE MARSHMALLOW CHALLENGE

40. WHO
CONSISTENTLY
PERFORMS POORLY?
WHO
CONSISTENTLY
PERFORMS WELL?
RECENT KINDERGARTEN
SCHOOL GRADUATES
RECENT BUSINESS
SCHOOL GRADUATES

41. Business
students
0
Orient Plan Build Ta-Da!
18 minutes

42. Business
students
0
Orient Plan Build Ta-Da!
18 minutes
Kindergarten
students

44. SUMMARY
§ Use your brand
§ Wider perspective on innovation
§ Management focus and culture
§ Interact with customers
§ Prototype fast

45. QUESTIONS? PLEASE
CONTACT US!
Johannes Bergh, CEO
+46 761 82 02 28
Johannes.bergh@rewir.com
Andreas Lindholm, strategist
+46 70 648 46 42
Andreas.lindholm@rewir.com