Xavi Anglada on the Innovation Maturity Index

Summary

The video script discusses the urgent need for businesses in the Middle East to innovate and adapt to digital and technological disruptions. With only 6% of companies effectively capturing innovation's value, the script highlights four key areas for transformation: leveraging new technologies to improve core business, driving incremental growth, scaling new business areas through an innovation architecture, and optimizing capital allocation. The research reveals that most companies are unprepared for transformation, with only 4% having transformed their core business, underscoring the importance of embracing innovation for future success.

Takeaways

• 🌐 Digital and technology disruptions are significantly altering the way we work and live, necessitating businesses to adapt quickly and innovate continuously.
• 🏁 Companies face challenges in evolving during disruptive times, with a potential $400 billion at stake for those who can successfully navigate these changes.
• 📊 The innovation maturity research survey covered major corporations across 11 industries in the Middle East, revealing a significant gap in innovation capabilities.
• 🔍 Only 6% of companies in the Middle East are effectively capturing value from innovation, indicating a need for improvement in the majority.
• 🕒 Middle Eastern businesses are struggling to escape the trap of being stuck in the present or the future, with 63% trapped in the present.
• 🛠️ Transforming the core business is essential for driving investment and growth, leveraging new technologies to improve cost structures and repurpose investments.
• 📈 Incremental growth in the core business is often overlooked but is crucial; companies should focus on digital marketing and analytics to get closer to customers and drive loyalty.
• 🌟 Scaling new initiatives is difficult but critical; companies need to develop an innovation architecture that supports the innovation lifecycle from concept to mass market.
• 💡 The research found that only 4% of companies have successfully transformed their core business, indicating a widespread need for transformation.
• 💼 71% of companies have not even begun their transformation, highlighting a significant opportunity for improvement.
• 🤔 Half of the respondents do not feel ready to transform their legacy business, and even fewer are confident in their ability to scale up new tech-enabled businesses.
• 💰 Only half of the surveyed companies believe they have sufficient investment capacity to transform their legacy business, pointing to a potential funding gap.

Q & A

What is the main challenge faced by companies in the context of digital and technological disruptions?

The main challenge is evolving their businesses in disruptive times, which demands speed, confidence, and continuous innovation.

What is the estimated value at stake for companies that can effectively capture the value from innovation?

The research suggests that there is an open value of four hundred billion U.S. dollars for winners and losers in the market.

Which region was the focus of the innovation maturity research mentioned in the script?

The research focused on the Middle East, covering the largest corporations across 11 industries.

What percentage of companies in the Middle East are found to be mastering the processes and practices for effective innovation capture?

Only 6% of companies are mastering these processes and practices.

What is the situation of Middle Eastern businesses regarding their focus on the present and the future?

63% of Middle Eastern businesses are trapped in the present and the future, indicating a struggle to adapt and innovate.

What is the first action that companies need to take to improve their innovation capabilities?

The first action is to transform the core business itself, leveraging new technologies to improve cost structures and repurpose investment for growth.

What is the second area of focus for companies looking to drive incremental growth in their core business?

The second area is embracing digital marketing, analytics, and other methods to get closer to customers and secure their loyalty.

What is the third dimension that companies need to focus on for future success?

The third dimension is scaling new businesses, which is critical but difficult, and requires an innovation architecture within the core business.

What is the fourth step companies should take to optimize their business strategy?

The fourth step is optimizing capital allocation between the core business and new businesses to maintain the right balance over time.

What percentage of companies have successfully transformed their core business according to the research?

Only 4% of companies have transformed their core business, indicating a significant room for improvement.

What percentage of respondents feel unprepared to transform their legacy business?

Surprisingly, half of the respondents do not feel ready to transform their legacy business.

What is the level of confidence among companies regarding their ability to scale up new tech-enabled businesses?

The level of confidence is low, with even fewer companies feeling confident about scaling up new tech-enabled businesses.

How many survey companies believe they have sufficient investment capacity to transform their legacy business?

Only half of the survey companies say they have sufficient investment capacity for transformation.