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Justifying your Investment in Innovation

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Some things to keep in mind if your company is pursuing the status quo

1. Companies that fail to innovate will either fail to exist long-term or will under perform the market¹.

2. Those companies that can successfully innovate have stronger financials including an average of a 4 point improvement in earnings, 2.5 times return in new product sales, and ten times return from their innovation investments.²

3. According to a recent 2006 Global CEO Study; Business Model innovators, they experienced a margin growth of 5% versus non-innovators.³

 

1. Dick Foster & Sarah Kaplan; Creative Destruction: Why Companies That Are built to Last Underperform the market.
2. Arthur D. Little, Innovation Excellence Study 2005
3. IBM 2006 Global CEO Survey on Innovation