Xavi Anglada on the Innovation Maturity Index

OERLive

26 Feb 201903:16

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

🌐 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.

Outlines

00:00

🚀 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

💡Digital Disruptions

Digital disruptions refer to the rapid changes brought about by digital technologies that significantly alter the way businesses operate and interact with their customers. In the video's context, these disruptions are driving the need for businesses to innovate and adapt quickly to remain competitive. The script mentions that these disruptions are changing the way we work and live, emphasizing the urgency for companies to evolve in the face of such challenges.

💡Innovation Maturity

Innovation maturity is a measure of how well a company is equipped to innovate and adapt to new technologies and market conditions. The video discusses research on innovation maturity, highlighting that most companies are struggling to evolve their businesses in disruptive times, which is a critical factor for success in the current business landscape.

💡Value at Stake

Value at stake refers to the potential financial gains or losses that companies face due to their ability or inability to adapt to changes and innovate. The script points out that there is $400 billion U.S. dollars of value at stake for winners and losers, indicating the high stakes involved in the competition to innovate effectively.

💡Middle East

The Middle East is the geographical focus of the survey mentioned in the script, which covered the largest corporations across 11 industries in the region. The video emphasizes the particular challenges faced by Middle Eastern businesses in capturing value from innovation and the need for them to transform and innovate.

💡Innovation Processes and Practices

Innovation processes and practices are the systems and methodologies that companies use to generate, develop, and implement new ideas and technologies. The script reveals that only 6% of companies are mastering these, suggesting a widespread need for improvement in how businesses approach innovation.

💡Trapping in the Present and Future

The concept of being trapped in the present and future refers to companies that are unable to effectively navigate the challenges of the current business environment or prepare for future opportunities. The script states that 63% of companies are trapped in the present, indicating a significant issue with their ability to innovate and adapt.

💡Transform the Core Business

Transforming the core business involves making fundamental changes to the way a company operates to improve efficiency, reduce costs, and drive growth. The video script suggests that leveraging new technologies and improving cost structures are key aspects of this transformation process.

💡Incremental Growth

Incremental growth refers to a steady and gradual increase in business performance, often achieved by improving existing operations or customer relationships. The script mentions driving incremental growth in the core business as one of the areas where companies should focus additional investment.

💡Digital Brilliance Basics

Digital brilliance basics encompass the foundational digital capabilities that companies need to excel in the digital age, such as digital marketing and analytics. The video emphasizes the importance of embracing these basics to get closer to customers and drive growth in the core business.

💡Scaling the New

Scaling the new refers to the challenge of growing and expanding new business ventures or innovations to a point where they can have a significant impact on a company's overall success. The script identifies this as a critical but difficult dimension for companies to master.

💡Innovation Architecture

Innovation architecture is the internal structure or framework that a company develops to support and manage its innovation efforts. The video script suggests that companies need to develop such an architecture to help bring innovations through different maturity cycles, from concept to mass-market production.

💡Capital Allocation

Capital allocation is the process of deciding how to distribute a company's financial resources among different business units, projects, or investments. The script refers to optimizing capital allocation between the core business and new businesses as a key step for companies to find the right balance for future growth.

💡Transformation Readiness

Transformation readiness assesses a company's preparedness to undertake significant changes to its business model or operations. The video reveals that only 4% of companies have transformed their core business, and many do not feel ready to make such changes, indicating a gap in transformation readiness.

💡Investment Capacity

Investment capacity refers to the financial resources available to a company for investing in growth opportunities, such as innovation or business transformation. The script points out that only half of the surveyed companies feel they have sufficient investment capacity to transform their legacy business.

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.