This innovation leadership study carried out jointly by IESE Business School and Capgemini Consulting is Capgemini’s third report in the innovation leader versus laggard series. It aims to understand how those leading and managing innovation in their organizations think about the innovation function and offers an insider perspective into both the formal and informal mechanisms for managing innovation. It covers five key areas that affect a company’s innovation success: the innovation function, innovation strategy and innovation governance (formal mechanisms), innovation leadership and innovation culture (informal mechanisms). The study offers a unique perspective by looking at the differences in behavior of innovation leaders versus laggards across these key areas – allowing to uncover good practices in managing innovation.
Finally, the report offers an overview of the most important implications for innovation executives that seek to improve their innovation success rate. Our study revealed that the absence of a well-articulated innovation strategy is by far the most important constraint for companies to reach their innovation targets, followed by a lack of understanding of the external environment. There is a need for innovation strategy development in a more bottom-up manner, focused on people as the key source of competitive advantage. One needs to capture all those individual insights from managers and employees to better incorporate an understanding of the external environment in the strategy development process.
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