Companies that govern innovation extensively achieve twice the revenue growth of those who don’t, achieving a compound annual growth of 5.9% (CAGR), on average. Yet according to a recent report by Accenture, fewer than one in eight companies actually do this.
The report found that 88% of companies govern innovation more haphazardly. Between 2013 and 2018, they achieved almost half the revenue growth of the highest-performing companies at 2.9% CAGR, on average.
Examining how innovation is and will likely be governed in the future, the report was based on a global survey of executives at almost 1,100 companies.
The survey also revealed that 84% of the executives direct innovation centrally, with a Chief Innovation Officer or innovation committee at the helm.
However, a “systematic approach to managing innovation and governing it extensively can provide tangible financial impact”, according to Accenture’s Chief Technology & Innovation Officer, Paul Daugherty.
The goal of the report was to identify how organisations allocate innovation investments and help executives understand how to govern more strategically. You can read more about how the world’s leading companies are out-innovating competitors here.