CEOs need to innovate to survive: Report

A PricewaterhouseCoopers (PwC) survey on innovation highlights the most common myths that hamper organisations and CEOs, from taking that leap of faith and trying out new ideas. The report 'Demystifying Innovation: Take down the barriers to New Growth' states that "43% of CEOs in the pharmaceuticals, and entertainment and media sectors, believe their greatest opportunities for growth this year lie in new products and services, against 29% of all CEOs (across sectors)."

But all of these bigshots know they can't go it alone because "a majority of entertainment and media CEOs (57%), for example, expect their company's innovations will be co-developed with outside partners. 41% of pharmaceuticals and life sciences CEOs expect the majority of their innovations will be developed in markets outside the country where they are based."

So though the survey does show that CEOs are aware that their organisations will have to innovate to survive, or they will get left behind in the rat race for marketshare and consumer mindspace, they still hesitate to take action. With almost a billion new consumers beginning to spend in the emerging economies of the world, the brands/organisations that don't adapt to these markets and their requirements will wither and die.

So CEOs need to be wary of the following misconceptions that the report points out, and take measures to overcome them.


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The myths hampering innovative behaviour are:

1. Innovation can be delegated. Ans: No
2. Senior and mid-level managers are natural allies of innovation. Ans: No
3. Innovative talent works for the money. Ans: No
4. Innovation results from lucky accidents. Ans: Very rarely
5. The more open the innovation process, the less disciplined. Ans: No
6. Businesses know how much innovation they need. Ans: No
7. Innovation can't be measured. Ans: Yes, it can be.

The graphic below shows how you can keep track of your innovative team and their progress on that new big fat idea.


The report is a good read for all those who want to figure out ways to speed up the innovation mindset in their organisations, and to cut loose the deadwood who act like bottlenecks.

Tables are from the report. Read the report here: http://www.pwc.com/gx/en/corporate-strategy-services/assets/ceosurvey-innovation.pdf