We have flipped the calendar and entered a new decade. It is a month since the closure of COP15, and we are still analysing results. Innovations were claimed to be the drivers required to reduce CO2-emissions. And, in this context, COP15 kicked off an innovation management process, involving heads of states, and a steering committee, and it was hoped would show the way to a better tomorrow. What went wrong and why did it go so wrong?
There are many different types of innovation, but business model innovation shows the strongest correlation with increased operating margin. Focus on Business Model Innovation is the first in a series of five articles by Gunjan Bhardwaj, head of Ernst & Young´s Global Business Performance Think-tank. The topics of the other articles are: Disruptive Innovation; Innovation in Networks; Social Innovation; and the Impact of Location on Innovation.
Studies have shown that companies’ return on innovation (ROI) or hit rate is somewhere between 2-10%. That is another way of saying that around 90% of all innovation efforts are never commercialised or used in general. Jørn Bang Andersen, senior advisor to the Nordic Innovation Centre (NICe), presents a NICe case study on possible ways to dramatically change that.
The benefits of open innovation during the current economic downturn have only recently been analyzed. Henry Chesbrough and Andrew Garman have recently published a Harvard Business Review article (June) on this. Wim Vanhaverbeke, Professor of Strategy and Innovation at Hasselt University, Belgium, provides some additional benefits when companies apply open innovation in a downturn, which has not been mentioned in the HBR-article.