Xavi Anglada on the Innovation Maturity Index
Summary
TLDRThe 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
- π Digital and technology disruptions are significantly altering the way we work and live, necessitating businesses to adapt quickly and innovate continuously.
- π Companies face challenges in evolving during disruptive times, with a potential $400 billion at stake for those who can successfully navigate these changes.
- π The innovation maturity research survey covered major corporations across 11 industries in the Middle East, revealing a significant gap in innovation capabilities.
- π Only 6% of companies in the Middle East are effectively capturing value from innovation, indicating a need for improvement in the majority.
- π Middle Eastern businesses are struggling to escape the trap of being stuck in the present or the future, with 63% trapped in the present.
- π οΈ Transforming the core business is essential for driving investment and growth, leveraging new technologies to improve cost structures and repurpose investments.
- π 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.
- π Scaling new initiatives is difficult but critical; companies need to develop an innovation architecture that supports the innovation lifecycle from concept to mass market.
- π‘ The research found that only 4% of companies have successfully transformed their core business, indicating a widespread need for transformation.
- πΌ 71% of companies have not even begun their transformation, highlighting a significant opportunity for improvement.
- π€ 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.
- π° 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.
Outlines
π Innovation Challenges and Opportunities in the Middle East
The script discusses the impact of digital and technological disruptions on business and the need for innovation. It highlights the findings of research on innovation maturity, which reveals that most companies in the Middle East are struggling to evolve in disruptive times, with only 6% mastering the necessary processes and practices for effective innovation. The research also points out that 4400 billion U.S. dollars of value are at stake for both winners and losers in the region. The survey included the largest corporations across 11 industries, emphasizing the urgency for Middle Eastern businesses to address their current challenges and future-readiness.
Mindmap
Keywords
π‘Digital Disruptions
π‘Innovation Maturity
π‘Value at Stake
π‘Middle East
π‘Innovation Processes and Practices
π‘Trapping in the Present and Future
π‘Transform the Core Business
π‘Incremental Growth
π‘Digital Brilliance Basics
π‘Scaling the New
π‘Innovation Architecture
π‘Capital Allocation
π‘Transformation Readiness
π‘Investment Capacity
Highlights
Digital and technology disruptions are changing the way we work and live.
Businesses need to move with speed and confidence and continuously innovate.
Innovation maturity research reveals challenges for companies evolving in disruptive times.
There's a $400 billion U.S. dollars value at stake for winners and losers.
Only 6% of companies in the Middle East are effectively capturing value from innovation.
63% of Middle Eastern businesses are trapped in the present and the future.
Transformation of the core business is essential for driving up investment capacity.
Leveraging new technologies can improve cost structures and repurpose investment for growth.
Driving incremental growth in the core business is often overlooked.
Companies should embrace digital marketing and analytics to get closer to customers.
Scaling new businesses is critical but difficult for executives and businesses.
Developing an innovation architecture is necessary for bringing innovations to market.
Only 4% of companies have transformed their core business, and 71% haven't begun.
Half of the respondents do not feel ready to transform their legacy business.
Few are confident about scaling up new tech-enabled businesses.
Only half of the survey companies say they have sufficient investment capacity.
It's the right time for Middle Eastern companies to start a structural problem and embrace innovation.
Transcripts
[Music]
Digital and Technology disruptions are
changing the way we work and live
demanding businesses to move with speed
and confidence and continuously innovate
in our recent innovation maturity
research we've learned that the majority
of companies are challenged in evolving
their businesses in disruptive times and
that is open four hundred billion u.s.
dollars of value at stakes for winners
and losers only in the Middle East the
survey covered the largest corporations
in the Middle East across 11 industries
and found out that only 6% of companies
are mastering the processes and
practices that are able to capture
effectively the value from innovation
Middle Eastern businesses are finding
themselves being trapped in the present
in the future or both 63% of them are
only trapped in the present and in the
future making a wise people should be a
matter of urgency among companies in the
Middle East and for this there are four
things that companies need to do the
first one is to transform the core
business itself in order to drive up
investment capacity out of it and indeed
these means leveraging new technologies
to improve cost structures and repurpose
investment to do growth in other parts
of the businesses the second area often
forgotten in the companies is how to
drive incremental growth in the core
business and this one is one of the
areas where we want the additional
investment we repurpose before to be
focused in to master this is where
companies should introduce the digital
brilliant basics means embracing digital
marketing analytics and other ways to
get closer to customers and get their
loyalty to drive growth to the core of
the business as scaling the new is the
third dimension very hard this one but
also very critical most executives and
businesses clearly see the areas they
need to focus for their future success
but embracing them and scaling them is
very difficult here is where companies
need to develop an innovation
architecture inside the core business
that help them bring these innovations
across the different maturity cycles
from the idea or concept that they
embrace together with a start
taps into solid production services with
mass market scale that will drive the
future value for the company and the
fourth step is what we call the wise
people or how we optimize the capital
allocation between my core business and
my new businesses over time to get the
right balance in the research we found
out that only 4% of companies have
transformed their core business and 71%
have not even begun their transformation
surprisingly half of the respondents do
not feel ready to transform their legacy
business and even fewer are confident
about their ability to scale up new tech
enable businesses only half of the
survey companies say they have
sufficient investment capacity to
transform their legacy business with all
these we strongly believe today it's the
right time for Middle Eastern companies
to start a structural problem and
embrace these wise people to rotate into
the new
you
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