Study: U.S. companies still waiting on an innovation ROI
Global companies agree that innovation is critical to survival but not enough projects are successfully driving growth and increasing revenue.
Specifically, two-thirds (66%) of global organizations said innovation is crucial to their longevity, but only 28% are seeing returns on their investments (ROI), according to “Innovation Matters,” a report from PA Consulting Group. The report tapped 821 senior executives across C-level, senior VP, board and director level positions.
American companies were just about average among countries surveyed in terms of those that felt innovation efforts were producing results. Yet, more than half of companies in the U.S. surveyed (58%) said innovation efforts have not been successful in helping them achieve growth. Nearly the same number (55%) said innovation had not helped achieve profitability either.
Despite this skeptical view of ROI in innovation, U.S. companies do believe that change is coming and quickly. In fact, when asked what changes their company had taken over the past three years and what change they foresee taking over the next three years, 57% of respondents said the biggest was their approach to innovation — the number one issue identified. Additionally, 38% of respondents — the top response — said they see innovation change in their company ramping up quickly.
"You have many companies in the U.S. that are highly innovative and are highly successful as a result," says Peter Siggins, U.S. region head for PA Consulting. "However, there is a constant competitive threat for these companies and to stay in the race, they cannot stand still when it comes to sustained innovation.”
Global leaders have created a clear pathway for achieving innovation success. These companies are more likely to:
• Focus on the future. They believe their organization can deploy technology to meet customer needs (59% versus 49% of less successful peers), and excel at measuring the business case for innovation (57% versus 41%).
• Design for innovation. These companies measure the value of innovation (61% versus 47%), and take new products and services to the market faster (61% versus 42%).
• Create an innovation culture. They kill off 'zombie' projects earlier than their less successful peers (54% versus 40%), and reward employees for innovation (81% versus 69%).
• Build a network for innovation. Successful companies source ideas for innovation from outside the organization (61% versus 52%), and have executive and leadership teams with a diverse range of skills and professional backgrounds (78% versus 66%).
"On a global scale, the companies that are most successful at innovation build it into the very fabric of their organization, use agile techniques across the business, and learn from their mistakes and successes," states Hsiu Mei Wong, business design expert at PA Consulting and an author of the report.
"In the U.S., it's evident that companies realize not only that innovation is critical to their survival, but that current approaches have not produced the return they desire,” Wong added. “As a result, change is ramping up in these companies and quickly. We anticipate a significant re-directed effort regarding innovation from U.S. companies in the months ahead, which will set them up for future success in the long-term."
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Harris Poll: The retail brands of the year are…
The Harris Poll has released its 29th annual study of America’s top brands, and Kohl’s is one of the retail brands on top.
Kohl’s earned the top position in the department store category of the poll, in which more than 100,000 U.S. consumers assessed more than 4,000 brands across more than 450 categories.
Other retailers named as Brands of the Year included:
Luxury department store: Nordstrom
Off-price: TJ Maxx
Electronics store: Best Buy
Sporting goods: Dick’s Sporting Goods
Coffee & quick-serve restaurant: Starbucks
Hardware and home store: The Home Depot
This year’s poll revealed that in a country facing a “values chasm,” Americans are rallying around brands aligned with their personal values.
“Age is certainly a driver of liberal versus conservative values, but there are other fundamental differences suggesting that there is less a divide based on age alone,” said Joan Sinopoli, VP of brand solutions at The Harris Poll. “It’s more of a divide based on ideologies and world views, and we see those values played out for politically and socially active brands.”
Based on consumer response, Harris Poll’s 29th annual EquiTrend Study measures brand health and utilizes a “brand equity index” that is comprised of three factors: familiarity, quality and purchase consideration. Each brand receives an equity rating. Brands ranking highest in equity receive the “Brand of the Year” award for their respective categories.
The full Harris Poll EquiTrend Brands of the Year list can be found here.
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Arts and craft giant partners with social media platform on home decor
Michaels and Pinterest are merging crafts and digital promotions to get artisans’ creative juices flowing.
The two companies are teaming up to sell a kit that can inspire newbies or the most experienced crafter to create one of the most trending projects on Pinterest. The co-branded Make It Kits were developed using Pinterest insights and trends, along with Michaels’ product expertise and e-commerce capabilities, according to Michaels.
On April 20, Michaels rewards customers are entitled to member-only early access to purchase the first kit, “Shibori for Your Home,” via Promoted Pins and an exclusive email offer. On April 21, the kits will be available to the public on Michaels’ e-commerce site.
The craft kit, a Japanese-inspired Shibori-style dyeing project, contains step-by-step instructions, tea towels, dye, and materials for three different dyeing techniques.
“Michaels is committed to making it easier, more accessible and most importantly, more fun for people to make [crafts],” said Carrie Walsh, senior VP of marketing for Michaels. “Pinterest helps people discover things they love, and our Make It Kit partnership is a perfect way to bring that inspiration to life.”
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