Why does innovation matter? The 228% difference.
In a 2014 Harvard Business Review article, Jeneanne Rae introduced the Design Value Index, a new tool to track the financial performance of design-centric companies against those that are not. When comparing the stock performance of 15 design-focused companies it showed that over 10 years, shares of design-centric firms (such as Target, Walt Disney or Nike) beat the S&P index by 228%.
Studies show almost 90% of businesses believe innovation is critical to success, however most admit they don’t do it effectively. So why does it matter? Innovation accelerates profitable revenue growth and enhances capabilities.
Shoot for the moon!
In May, 1961, President John F. Kennedy proposed "to accelerate the development of the appropriate lunar space craft" to land a man on the moon before the end of the decade. That goal sparked a wave of scientific and technical innovations never seen before. What drove that success was the vision. What is your moon shot?
Innovation is the path to growth
A company that embraces an innovative mindset is on the path to growth. From top to bottom, innovation will help you discover a much better way of doing things — more productive, more responsive, more inclusive, even more fun. The result is an edge in the market that generates more revenue.
Creativity plus Action = Innovation
Innovation always starts with creativity. A company that wants to see more innovation needs to encourage and support its employees to come up with novel, relevant and meaningful ideas. However, having an idea alone is not good enough. It takes action to bring ideas to life. But as Lee Iacocca noted in the quote below, that isn’t easy.
Corporate culture needs to encourage employees to come up with ideas and take the necessary action steps to win support in order for innovation to take place.