Reflections on IBM’s CEO Study: Predicting Innovation
The 2010 IBM Global CEO Study, entitled "Capitalizing on Complexity" provides some remarkable insights into the minds of 1500 CEOs from around the world.
Today's topic: Predicting Innovation
Excerpt from the Study:
"A significant number (of CEOs) said their success depends on doubling their revenue from new sources over the next five years. A Telecommunications CEO in Brazil predicted, “The services that account for 80 percent of our revenue today will only be our second-largest source of revenue in five years.
"Finding these new categories of growth is not easy in an environment characterized by an untold number of discrete markets, proliferating product and service categories, and ever-individualized customer segments."
What percent of your company's business will come from new products in the next five years?
Is this number a part of your calculation?
In the IBM study, CEOs said that their companies received between 15 and 20% of their revenue generated from new sources over the past five years, and yet expect it to increase to 25 to 30% of revenue in the next five years. 3M, a historical leader in innovation, draws 25% of their sales from products released in the past five years. While that number is down from 33%, (see DrawSuccess blog entitled: Innovation vs. Efficiency or Innovation AND Efficiency), it still begs the question:
What % of your company's sales in five years
will come from products you're not selling today?
The next question, of course, is:
Where are the ideas
for new products, services and programs
going to come from?
DrawSuccess is a program for stimulating Innovation at All Levels. Whether the goal is to come up with ideas for new products and services, to stimulate creative problem-solving, to improve decision-making or to maximize employee engagement, DrawSuccess is the solution. To learn more, Contact Us.
To request a copy of the 2010 IBM Global CEO Study, go to: http://www-935.ibm.com/services/us/ceo/ceostudy2010/index.html.
More DrawSuccess Blogs on the Study: