GE and its Global Innovation Barometer 2016

 GE Innovation Barometer 2016I always look particularly forward to this report as it provides a range of insights that are shaping our world and how innovation is adapting and altering this.

Now the report in its fifth edition, it is now spanning 23 countries where the opinions of senior innovation executives or the equivalent are sought out, covering 2,748 executives, with 1,915 being in the C-Suite.

This year the barometer decided to explore the perceptions of the (informed) public for their thoughts on innovation’s growing impact and in particular, the future of work and they interviewed 1,346 to gain some useful insights and pointers that separate business and the citizen in their understandings.

The report covers a significant amount of areas across innovation. Here I wanted to pull out just a couple that initially caught my eye. I might add to this in further posts.

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Connected Enterprise, Connected World

Connecting the WorldI was delighted to be invited onto a panel with GE at their R&D centre in Munich this week. Dubbed “Innovation Breakthroughs – Igniting Europe’s Growth” They were celebrating 10 years of theopening of the centre and as you arrived, you saw the cranes at work to double the facility as well as further deepen their commitments within the surrounding community even further.

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So what is holding innovation back? A new GE report

GE Global Innovation Barometer 2014I always look forward to the GE Global Barometer and the 2014 report is no exception, actually it really has moved the needle on what is presently holding innovation back. The Barometer has explored the actions or constraints that senior business executives are worrying over in their pursuit of innovation.

The fieldwork was undertaken in April and May, 2014 and covered 3,200 phone interviews to people directly involved in the innovation strategy or process. It covered 26 countries and was conducted by Edelman Berland on GE’s behalf.

The supporting website provides the GE view of how this report reflects and provides an overview, an interactive, resources and key point headings sections to explore.

I  personally think GE have actually been a little too low-key on this report and frankly far too conservative on the potential takeaways in reading their ‘take’ in the overview. It has significant implications for our organizations to grapple with but each is certainly not alone, it is a collective need to move innovation forward or you place much at risk if you don’t find solutions to the issues raised in this report.

This year the Barometer broke out of its past and steamed ahead.

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Leaders are feeling the effects of Innovation Vertigo says GE

GE have just released their latest Global Innovation Barometer survey and they are strongly detecting “Innovation Vertigo” from the survey conducted through more than 3,000 senior business executives in 25 countries.

This ‘dizziness’ for many is being caused by a growing unease with the continuing changing dynamics of today’s business landscape and uncertainty over the path forward. This is forcing leaders to think differently about how they will achieve growth. The good news though is it does seems that many are beginning to embrace this complexity by exploring new and sometimes unexpected opportunities to innovate.

According to Beth Comstock, the senior vice president and chief marketing officer of GE, “leaders are betting big on more unconventional approaches to innovation to unlock growth”. It seems GE are trying to stay ahead of the pack in unlocking innovation by exploring different markets, partnership structures and business models. Big data is accelerating up the inside as we have seen both GE and P&G, placing increasing emphasis on this, as a potential source of innovation insight they feel is presently missing.

The most important point comes back to these tensions or vertigo being felt, that is showing through in this report, between the desire for globalization and protectionist temptations that organizations sometimes tend to favor. It seems as our leaders are being pushed outside their comfort zones they are having this uneasiness with the pace of change and confusion over the best path forward.

I’d hazard a guess  on what they feel as ‘vertigo’ does go beyond the usual symptoms of light-headedness and dizziness and is possibly far more: that of a chronic lack of solutions beginning to creep into their  psyche as their worlds are spinning out of their control, to stay managing in the ways they have been. Perhaps welcome to our world Mr Leader.

As many of them will be gathering in Davos, Switzerland between 23rd to 27th January 2013 (http://tinyurl.com/afde4w5) I think the higher than usual altitude, will not help their brains or nervous systems as the whole economic system is still out of balance, so having “Innovation Vertigo” is part of a bigger malaise I would expect.

Still, here are the top line summary points of the report

The protectionist debate

There seems a growing undercurrent of wanting protectionism but making sure it works in their favour. This could be trying to get Governments to prioritize promotion of domestic innovation rather than imported but many others continue to feel markets need to be opened even more to promote the imported innovation and attract the (domestic) investment that goes with this, or should.

A growing number of leaders see growing challenges for innovation within local economies, believing that the increased competition and accelerated pace of technological advancement has a negative impact. So this is a growing set of policy paradoxes, leaders want clearer decisions through local governments to determine this and bring it under control.

The wish to go beyond just product innovation

There is also a growing recognition that incremental innovation is simply just not enough as organizations are suffering from this lack of growth momentum, causing much of the “vertigo”. Business model innovation is becoming more and more the solution with a growing view that a new business model may offer businesses a less risky and resource-intense path to reach customers over the current ‘traditional’ methods.

I read an awful lot into this but top of mind does come the word ‘naivety’ and a chose this word due to its definition: “being naive is often lacking developed powers of reasoning and criticism.”  They might look far more at the “within” and come down from their often lofty heights and recognize they are the ones that inhibit and constrain the existing structures to perform in so many ways, far too many to start to outline here.

I welcome new business models of course, I teach the methodologies associated with them, so they are needed but are these organizations equipped to design, construct and execute new business models?  Also what happens to all the resource-intense ones, do they continue, only to wither and die as new ones are pushed by their own leaders?  No, this might be fanciful but it needs a far more robust debate and thinking through.  Of course focusing on the right forces for growth mentioned to master innovation is the real need for innovating successfully, business needs to master customer and market insights, talent and technology development.

Grasping new business models alone does not change that inherent weakness seen today in existing organizations. Theory and desire might be one thing, reality and sunken investment might be another –  maybe more vertigo then?

Collaborations continue to feature

According to the report, it is the belief that collaboration between businesses is emerging as a means to surpass competitors, enabling faster access to new technologies and markets particularly in emerging markets. Yet despite global acknowledgement of partnership’s power, concerns over revenue sharing, IP protection, trust and talent poaching pose barriers to action. Germany, China, Brazil and Sweden seem to have the most experience at partnerships.

It does seem collaborative innovation has plenty of global appeal as a key to business success, and momentum are accelerating in developing markets and seemingly slowing down in developed ones. The reasons for collaborations are given as access to new technologies, access to new markets; improve existing product and service and speed up time to market. The downsides are a lack of trust and policy protection underpins much of the anxiety over business collaboration and the continuing “old chestnut” of IP protection, which all fit with developing country lag issues on legislation protection.

Government as stewards of the innovation environment

This one also gets me intrigued – stewards – umm. We are in such a “fog” from lack of dynamic leadership at government level, partly due to the complexity and tangled knots we have got ourselves into but also the underwhelming mandate delivered at the ballot box leaves the politics of politics in stalemate. I always get the sneaky feeling business leaders keep pushing government to lead and make policy and then scream and shout, another vertigo moment, if they don’t like the decisions that go with this.

Of course policy environments affecting innovation are caught up in this and the usual call to safeguard business interests adds to the tensions. Business worries over the lack of talent, of loss of knowledge, in IP issues and fear bureaucracy (besides their own) and over regulation (beside their own again) but often we can’t see our business leaders heading the charge to hang onto talent already in place, reduce the knowledge we all have by insisting on many brain-numbing daily activities, called specialisation and filling in information called for by the “system” etc.

Our business leaders want to see “a stronger entrepreneurial culture in the education system through stronger linkages between students and business savvy individuals” but sitting on their hands and wallets until this comes through any changed education system does not solve our immediate and next ten years of problems –  does it? I suspect more vertigo moments for them.

Lastly, guess what, talent is not in the right place

Leaders want to have access to the creativity and technical prowess within their workforce but the lack of preparedness and access to this ‘talent’ is holding them back in “unlocking innovation”. I find it hard here to not become a little cynical on this. Matching jobs and people is hard, no doubt and lining up the right skills to meet the economic needs required today is correct but if all the millions of messages of caution in the past about investing in people, in nurturing what you have, holding onto what you have in experienced people, instead of simply letting them go, many on early retirement packages or just leaving out of continued frustration, I do have a hard time on their concerns. They made the bed……..

Perhaps another symptom of “Innovation Vertigo” is “Innovation knee-jerking”, turning it off and on for the short-term needs and abandoning the notion of continuous, sustained investment in the skills, along with developing the experience base through challenging environments and leading edge investments. Well at least if new business models come into serious ‘play’ then the skills, experience base and challenging environments will all equally be in ‘play’ but not in the controlled ways they would want to see but at the edges of much discomfort for some white knuckle rides.

Thanks GE for providing this, it is certainly helpful to see inside leaders minds.

I enjoy the GE Global Innovation Barometers they often do raise the blood pressure and that of course is a certain tell, tell sign that I might be suffering “Innovation Vertigo” as well. Can I go to Davos as well, please? I do live in the country but more at  solid ground(ed) level, I’d like to be a little light-headed above the clouds.

The report is at http://www.ge.com/sites/default/files/Innovation_Overview.pdf

or with different views here: http://www.ideaslaboratory.com/projects/innovation-barometer-2013/

Shoring up the fragile innovation system, call GE

Well, the World Economic forum’s annual meeting is beckoning later this month. During the period of 25th to 29th January the WEF attempts to engage business, political, academic and other leaders of society to shape global, regional and industry agendas.( http://www.weforum.org/)

Just released on 18th January is the GE Global Innovation Barometer with its results of its second annual review on innovation. Here is the source site to check out and explore your own needs : http://www.ge.com/innovationbarometer/

The aim of the release is to use this and have this available for the meeting in Davos as well as shape GE’s innovation agenda going forward. For the Davos meeting lets hope our leaders have the time and inclination to review its content. No doubt GE will be there and if  Beth Comstock is going as the senior vice president and chief marketing officer of GE I’m sure she will be leading the “innovation does matter” charge.

Beth is emphasising a number of vital points that are arising from this survey. Let me provide a few, her rallying cry for business leaders is to understand where and how their innovation strategies are being challenged and to drive towards new solutions.

The report raises all the uncertainties found in today’s market place are challenging business’ ability to innovate. There is a growing restriction on accessing external funding or a conservative attitude and appetite for risk. Some would argue this ‘hording’ of cash, of not investing at this time does push us into more of a deeper hole so how can this be resolved. Enter the political group to provide a more confident environment for investment so let’s trust some resolution of resolve and consensus emerges out of this meeting of minds.

The top line summary taken from this GE barometer taken in October/ November 2011

  • • 9 of 10 executives report economic crisis negatively impacts their ability to innovate
  • • View innovation as primary driver of economic growth, jobs, quality of life
  • • Pro-innovation markets produce better economic results
  • • New model for innovation in the 21st century validated
  • • USA, Japan, Germany, China still perceived as most innovative

The continued belief, confirmed by the majority of business leaders interviewed is that innovation continues as the main driver of prosperity, competitiveness and job creation, and but also points out how challenging and uncertain the present economic and political environments we are in, may hinder companies’ ability to deliver meaningful innovation.

My one comment here on this– Leaders please ‘walk the talk’ on innovation.

A partnership paradox

I found more than interesting in the release by GE that a disconnect has surfaced between the importance of partnerships and the need to pursue them in the near term. There is a clear confirmation (86% of those surveyed) that partenerships are an important component of the new model of innovation but only 21% believe finding partners is an immediate priority to innovate more on a day-to-day basis

My comment here: That is a real disconnect between the present belief and momentum supposedly going on in open innovation and the possible activity taking place in the trenches and what the top knows about. That gap if it is there I think needs urgently addressing to get everyone on the same collaborative page.  Might actually “put the cat amongst the pigeons” for many.

Creating conditions for meaningful innovation

There is a reminder that one-size does not fit all. At the global level innovation continues to move towards an open, more collaborative model, innovation at the local level presents a complex landscape of challenges and opportunities that broad strokes can’t resolve. These constraints or nuances need to be dealt with at the market level as perceptions on innovations ‘place’ are radically different. This is where the barometer has some good insights for those applying global innovation across different market situations.

My comment here: Adopting a more flexible approach to innovation might have increasing value, especially in these more uncertain times where discontinuities will increase more than decrease.

Embracing the new innovation approach

The report reflects on the needed shift for innovation to thrive in the 21st century. That is embracing a new paradigm, one that engenders this collaboration need between several partners, values the creative power of smaller organizations and individuals, and tailors solutions to meet local needs. Business leaders around the world agree that great innovations in the 21st century will be about shared value — addressing both human needs and the bottom line – versus delivering profit alone.

  • • More than ever, 88 percent of executives agreed that the way companies will innovate in the 21st century is totally different than ever before.
  • • 77 percent of executives acknowledged that individuals and small- to mid-sized enterprises have the ability to be as innovative as large companies.
  • • 73 percent agreed that innovation will be driven by people’s creativity over scientific research.

My comment here: Again, I have to question this, not the notion or intent but the real understanding.  I would argue innovation still has not got the appropriate attention and critical understanding at leadership level for the vast majority. To believe they are taking us through a new paradigm is a tough one, I would suggest they are being dragged ‘kicking and screaming’ into the 21st century, hanging on to tried and tested 20th century practices.

My second comment here: The danger for executives in larger organizations does lie in the second point- individuals and small-to-mid-sized enterprises do have the ability to match and often exceed them in innovation. In individuals and small units or the smaller pockets of like minded communities does lie the potential of creativity and large organizations are struggling to get their heads around this dilemma.

Convergence and Divergence- narrow the gap.

So I hope the combined forces of Beth Comstock, GE and its global innovation barometer discussed in Davos provides a platform for strengthening innovation’s message at the leadership level.  I would certainly feel within GE it is shifting the focus in their own innovation challenges and as they absorb the outcomes of this barometer I look forward to seeing more innovating coming from them.

Come on GE lead the way and show that continued willingness to take risks and engage across and with society. It is better than the alternatives that many leaders are taking- to reduce innovation where they will eventually pay that price. Get the innovation message across Beth please. The Global Economy needs innovation more than ever to move forward.

The power and promise within innovation: shifting up our gears

Are the rules around innovation changing? Are we spotting the changes in the drivers and current deterrents of innovation? What are the present day perceptions around the innovation challenges?

GE released their first-of-its-kind “Global Innovation Barometer” at the end of January 2011. It is focusing on identifying the changing landscape for innovation in the 21st century. It suggests innovation will be a catalyst for improving multiple areas of citizen’s lives in the next ten years.

In many ways it paints a very optimist future for innovation. Innovation, the survey predicts, will create jobs, improve lives, address more human needs, find better ways to collaborate and learn, and simply create good in people’s lives with the promise of prosperity.

I wonder a little differently: are we not placing too bigger a burden on innovations shoulders?”

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