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Large organizations target organic growth of 4-6% per annum. Achieving this is a herculean task even for global companies that generate billions in net sales, according to Evalueserve White Paper 2015.
As a company grows in size, the key question that reaches the CEO’s desk is how to sustain a high growth rate. While traditional wisdom would suggest a volume game (selling more to an existing consumer base), ambitious risk takers would rather explore newer markets and consumer segments through innovative products, processes, or business models.
Best-practice organizations typically follow a process-oriented approach to innovation. This process comprises front- and back-end innovation activities (summarized in Figure 1) that are capital intensive, carry a high risk of failure, and often do not guarantee returns. Technology teams have thus been finding it difficult to justify the billions that go into product development. As companies try to bridge the gap between their top and bottom lines, they realize that they cannot rely on in-house innovation alone to remain viable. Instead they must scout for ready-to-com- mercialize innovations through alliances with external and internal partners, to cut R&D bills while maintaining high innovation rates.
For more details please acces the study Open Innovation.
