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CEOs confident on innovation

News, 19 July 2016

NEW YORK: Most CEOs in the US are confident that they and the teams around them are capable of driving innovation but relatively few have a structured, business-wide approach to the issue.

Consulting firm KPMG surveyed 400 US CEOs from organisations with at least $500m in revenue, canvassing opinion on a variety of topics including technological disruption, innovation, regulation and cyber security.

Innovation emerged as one of the top three priorities but more than a third (36%) admitted their organisation's approach to innovation was either ad hoc, reactive, or occurred on a siloed basis.

Only a quarter of respondents said innovation was embedded into everything they do.

A majority (85%) indicated they themselves would like more time to strategise about how to foster innovation and proactively address the disruptive challenges they faced.

The survey also revealed widespread apprehension about the integration of basic automated business processes with artificial intelligence and cognitive processes.

But despite the lack of structure and the feeling they weren't able to give it sufficient attention, 80% of respondents expressed confidence in their management team's ability to drive innovation.

"Nearly all CEOs see emerging opportunities over the next five years that are detectable now, through signals like changing demographics, technology innovation and start-up activity," said Mike Nolan, vice chair, Innovation & Enterprise Solutions, KPMG.

"However, it's the forward- thinking CEOs that take a broad view of the areas where disruption is taking place, assess how these elements impact their business and operating models, and begin to reshape their company into an organisation that turns disruption into innovation."

An analysis of the winning entries to the Warc Prize for Innovation draws out lessons for marketers to develop fresh thinking that can deliver business results. These include addressing specific societal needs and imaginative use of date to solve business challenges.

Readers can download a summary version of the Innovation Casebook here.

Data sourced from KPMG; additional content by Warc staff