Expanding the innovation horizon: Introduction to the 2006 CEO Study
The 2006 CEO Study takes a comprehensive, global look at a topic that is increasingly important to CEOs and government leaders worldwide: innovation. We knew from the study that CEOs were relying on innovation to drive profitable growth. But beyond innovation's bottom-line importance, we believe that business and public sector leaders are acutely aware of the phenomenal challenges society faces in the coming decades?and our mutual dependence on innovation to solve these issues.
We spoke at length with 765 CEOs, business executives and public sector leaders from around the world to learn more about their thoughts on innovation. They were remarkably frank, sharing with us their motivations, plans and even their weaknesses. We learned that two out of every three CEOs expect fundamental changes for their organizations over the next two years. Surprisingly, CEOs do not seem daunted by this challenge. Instead, they see opportunity?opportunity to be seized through innovation. And what they told us may compel leaders to reevaluate their preconceptions about innovation.
* Business model innovation matters?Competitive pressures have pushed business model innovation much higher on CEOs' priority lists than expected. But its importance does not negate the need to focus on products, services and markets, as well as operational innovation.
* External collaboration is indispensable?CEOs stressed the overwhelming importance of collaborative innovation, particularly beyond company walls. Business partners and customers were cited as top sources of innovative ideas, while research and development (R&Dfell much lower on the list. However, CEOs also admitted that their organizations are not collaborating nearly enough.
* Innovation requires orchestration from the top?CEOs acknowledged that they have a primary responsibility for fostering innovation. But to effectively orchestrate it, CEOs need to create a more team-based environment, reward individual innovators and better integrate business and technology.
In our conversations, we found a persistent, worldwide, sector- and size-spanning push toward a more expansive view of innovation. A greater mix of innovation types, more external involvement and extensive demands on CEOs to bring it all to fruition. Based on these CEOs' collective insights, we offer several considerations that can help organizations sharpen their own innovation agendas.
* Think broadly, act personally and manage the innovation mix?Create and manage a broad mix of innovation that emphasizes business model change.
* Make your business model deeply different?Find ways to substantially change how you add value in your current industry or in another.
* Ignite innovation through business and technology integration?Use technology as an innovation catalyst by combining it with business and market insights.
* Defy collaboration limits?Collaborate on a massive, geography-defying scale to open a world of possibilities.
* Force an outside look...every time?Push the organization to work with outsiders more, making it first systematic and, then, part of your culture.
By contributing their own ideas and perspectives, each CEO participant has played an integral, collaborative role in producing this study. And, for that, we are extremely indebted. In turn, we offer the insights from this study to CEOs worldwide in the ongoing spirit of collaborative innovation.
IBM
We spoke at length with 765 CEOs, business executives and public sector leaders from around the world to learn more about their thoughts on innovation. They were remarkably frank, sharing with us their motivations, plans and even their weaknesses. We learned that two out of every three CEOs expect fundamental changes for their organizations over the next two years. Surprisingly, CEOs do not seem daunted by this challenge. Instead, they see opportunity?opportunity to be seized through innovation. And what they told us may compel leaders to reevaluate their preconceptions about innovation.
* Business model innovation matters?Competitive pressures have pushed business model innovation much higher on CEOs' priority lists than expected. But its importance does not negate the need to focus on products, services and markets, as well as operational innovation.
* External collaboration is indispensable?CEOs stressed the overwhelming importance of collaborative innovation, particularly beyond company walls. Business partners and customers were cited as top sources of innovative ideas, while research and development (R&Dfell much lower on the list. However, CEOs also admitted that their organizations are not collaborating nearly enough.
* Innovation requires orchestration from the top?CEOs acknowledged that they have a primary responsibility for fostering innovation. But to effectively orchestrate it, CEOs need to create a more team-based environment, reward individual innovators and better integrate business and technology.
In our conversations, we found a persistent, worldwide, sector- and size-spanning push toward a more expansive view of innovation. A greater mix of innovation types, more external involvement and extensive demands on CEOs to bring it all to fruition. Based on these CEOs' collective insights, we offer several considerations that can help organizations sharpen their own innovation agendas.
* Think broadly, act personally and manage the innovation mix?Create and manage a broad mix of innovation that emphasizes business model change.
* Make your business model deeply different?Find ways to substantially change how you add value in your current industry or in another.
* Ignite innovation through business and technology integration?Use technology as an innovation catalyst by combining it with business and market insights.
* Defy collaboration limits?Collaborate on a massive, geography-defying scale to open a world of possibilities.
* Force an outside look...every time?Push the organization to work with outsiders more, making it first systematic and, then, part of your culture.
By contributing their own ideas and perspectives, each CEO participant has played an integral, collaborative role in producing this study. And, for that, we are extremely indebted. In turn, we offer the insights from this study to CEOs worldwide in the ongoing spirit of collaborative innovation.
IBM
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