Key findings andinnovation insights<br />2<br />Analysis based on the MMI Survey # 1<br />Kronborg Castle, 3rd of October ...
Content<br /><ul><li>Analysis scope and approach</li></ul>Key findings and insights<br />Recommendations<br />3<br />
800 business leaders from 100 Nordic companiesparticipate in the MMI-programme<br />4<br /> 800 participants from 100 comp...
8 small
5 medium
8 large</li></ul>Finland<br /><ul><li>21 companies
11 small
5 medium
5 large</li></ul>Norway<br /><ul><li>21 companies
8 small
5 medium
8 large</li></ul>Sweden<br /><ul><li>21 companies
14 small
7 medium
0 large</li></ul>Denmark<br /><ul><li>18 companies
5 small
6 medium
7 large</li></ul>< 50, small sized company<br />< 250, medium sized company<br />> 250, large sized company<br />Categorie...
In-depth analysis with Capgemini Consulting and Innoption has enabled benchmarking of companies and sectors<br />5<br />Da...
To explore innovation across several dimensions;
Nordic level
Country level
Sector level
Company size
Profit margin
To examine the relationship between innovation strategy, innovation focus approach and effort level</li></ul>Key findings ...
The analysis examines Nordic companies’ Innovation Radar consisting of 12 primary dimensions and 4 macro dimensions<br />6...
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How Nordic companies innovate by Jørn Bang Andersen and Hans Christian Bjørne

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  • This is in coherence with the myth that Nordic players tend to be risk averse
  • Bill Gates sitat ”Neste utfordrer fra garasje”
  • How Nordic companies innovate by Jørn Bang Andersen and Hans Christian Bjørne

    1. 1. Key findings andinnovation insights<br />2<br />Analysis based on the MMI Survey # 1<br />Kronborg Castle, 3rd of October 2011<br />
    2. 2. Content<br /><ul><li>Analysis scope and approach</li></ul>Key findings and insights<br />Recommendations<br />3<br />
    3. 3. 800 business leaders from 100 Nordic companiesparticipate in the MMI-programme<br />4<br /> 800 participants from 100 companies across the Nordics<br />Iceland<br /><ul><li>22 companies
    4. 4. 8 small
    5. 5. 5 medium
    6. 6. 8 large</li></ul>Finland<br /><ul><li>21 companies
    7. 7. 11 small
    8. 8. 5 medium
    9. 9. 5 large</li></ul>Norway<br /><ul><li>21 companies
    10. 10. 8 small
    11. 11. 5 medium
    12. 12. 8 large</li></ul>Sweden<br /><ul><li>21 companies
    13. 13. 14 small
    14. 14. 7 medium
    15. 15. 0 large</li></ul>Denmark<br /><ul><li>18 companies
    16. 16. 5 small
    17. 17. 6 medium
    18. 18. 7 large</li></ul>< 50, small sized company<br />< 250, medium sized company<br />> 250, large sized company<br />Categories based on directives from the EU Commission<br />
    19. 19. In-depth analysis with Capgemini Consulting and Innoption has enabled benchmarking of companies and sectors<br />5<br />Data and analysis<br />Scope of the analysis<br />Online survey #1<br /><ul><li>To get a holistic perspective of how companies innovate in Denmark, Sweden, Norway, Iceland and Finland
    20. 20. To explore innovation across several dimensions;
    21. 21. Nordic level
    22. 22. Country level
    23. 23. Sector level
    24. 24. Company size
    25. 25. Profit margin
    26. 26. To examine the relationship between innovation strategy, innovation focus approach and effort level</li></ul>Key findings and innovation insights<br />
    27. 27. The analysis examines Nordic companies’ Innovation Radar consisting of 12 primary dimensions and 4 macro dimensions<br />6<br />Example of Nordic companies<br />Offering<br />Partnership<br />Offering<br />Ecosystem<br />Platform<br />Solution<br />Channel<br />Customer needs<br />Supply chain<br />Management<br />Customer experience<br />Value Capture<br />Marketing communication<br />Process<br />Operations<br />Customer<br />The radar is a tool to identify innovation areas of positioning, and a lot can be learned from looking at the companies that stand out from the crowd.<br />
    28. 28. Real Innovation Radar examples illustrate different innovation focus approach and effort level<br />7<br />Different agreement levels<br />Real examples of focus and effort levels<br />Danish Retail company with a high innovation focus, and a high innovation effort level<br />High agreement level: The answers from the individual respondents withinthecompanies are aligned<br />Swedish Service company with a high innovation focus and a low innovation effort level<br />Finnish Industrial company with a low innovation focus and a high innovation effort level<br />Low agreement level: The answers from the individual respondents within thecompaniesdiffer significantly<br />Swedish Industrial company with a low innovation focus and a low innovation effort level<br />Putting the Innovation Radar to work companies must prioritize on which dimensions to focus its effort.<br />
    29. 29. Content<br />Analysis scope and approach<br /><ul><li>Key findings and insights</li></ul>Recommendations<br />8<br />
    30. 30. The survey indicates undeniably important findings on how Nordic companies innovate<br />9<br />Overall findings<br />Key findings<br />1<br />Nordic companies are biased towards Offering oriented innovation<br />A majority of Nordic companies primarily innovate within the Offering dimension<br />2<br />Ten of twelve sectors have a majority of participants primarily biased towards the Offering dimension<br />3<br />Offering is rated as the most important future radar dimension<br />4<br />Nordic companies have an Unfocused innovation approachand put relatively low Effort into innovation<br />A majority of Nordic countries have an unfocused innovation approach and/or low innovation effort levels<br />5<br />Size of companies and competitive landscape matter for innovation focus<br />6<br />High effort levels are not common practice across the Nordic companies, with the exception of Finland<br />A minority of Nordic companies have an Innovation strategy, however companies with innovation strategy have higher innovation effort, higher innovation focus and better internal alignment<br />7<br />Only 41 percent of the Nordic companies have an innovation strategy<br />8<br />Companies with an Innovation strategy have higher innovation effort, higher innovation focus and higher internal alignment<br />Note: The terminology ‘Nordic companies’ used throughout the document refers only to the Nordic companies participating in the MMI program<br />
    31. 31. Content<br />Analysis scope and approach<br /><ul><li>Key findings and insights
    32. 32. Offering oriented innovation
    33. 33. Innovation focus and effort
    34. 34. Innovation strategy</li></ul>Recommendations<br />10<br />
    35. 35. Whenassessing all thedimensionsofthe radar, Offering stands out as the most prioritisedprimary radar dimension<br />11<br />Innovation radar dimensions<br /><ul><li>All Nordic countriesarebiasedtowardsoffering
    36. 36. Iceland has a strong secondary focus towards Customer Experience, Process and Management
    37. 37. Denmark has a large spread of focus amongst companies, contributing to a round overall radar
    38. 38. There is little focus on Partnership Innovation in all the Nordic countries</li></ul>Norway<br />Sweden<br />Finland<br />Iceland<br />Denmark<br />
    39. 39. A majority of Nordic companies primarily innovate within the Offering dimension<br />12<br />Key finding 1 - Offering<br />Primary macro dimension Nordics<br /><ul><li>64% are primarily biased towards Offering innovation (offering, platform and solutions)
    40. 40. Only 4% are biased towards Partnership innovation</li></ul>Partnership<br />Primary macro dimension by country<br /><ul><li>All Nordic countries are biased towards Offering, however Denmark is balanced between Offering and Operations
    41. 41. Only Finland scores relatively high on Partnership innovation (17 %)</li></ul>Partnership<br />Offering is the primary macro dimension in all of the Nordic countries, however Operations and Partnership innovation have a relatively higher share of focus in Finland and Denmark respectively.<br />
    42. 42. 13<br />Key finding 2 - Offering<br />Ten of twelve sectors are biased towards the Offering dimension<br />Primary macro radar dimension<br />Companies per sector:<br />11<br />3<br />4<br />23<br />8<br />14<br />3<br />8<br />4<br />15<br />4<br />4<br />Partnership<br /><ul><li>Retail and Tourism stand out by primarily innovating within Customer- and Operations innovation
    43. 43. Telecom is unique by being the only sector that has a large focus on Partnership innovation
    44. 44. Healthcare, Finance, Telecom and IT have no primary focus on Customer innovation
    45. 45. 100 % of the companies within Service and Media only have Offering as primary macro dimension</li></ul>Retail and Tourism are the only sectors that do not primarily innovate within Offering, indicating there are large unexploited areas of positioning within innovation.<br />
    46. 46. Innovation radar examples from the Retail sector and the Media sector illustrate different innovation focus dimensions<br />14<br />Key finding 2 - Offering<br />Media company focusing on Offering<br />Retail company focusing on Operations<br />Offering<br />Partnership<br />Offering<br />Partnership<br />Offering<br />Offering<br />Platform<br />Platform<br />Ecosystem<br />Ecosystem<br />Solution<br />Solution<br />Channel<br />Channel<br />Customer needs<br />Supply chain<br />Customer needs<br />Supply chain<br />Customer experience<br />Customer experience<br />Management<br />Management<br />Value Capture<br />Value Capture<br />Marketing communication<br />Marketing communication<br />Operations<br />Customer<br />Operations<br />Customer<br />Process<br />Process<br />Areas of focus varies substantially between the Retail and Media sector.<br />
    47. 47. Key finding 3 - Offering<br />When asked for future primary macro radar dimension, the share of Offering Innovation increases<br />15<br />Most importantfutureprimarymacro radar dimension<br /><ul><li>Offering Innovation increases from 64% to 72%, when Nordic companies choose the most important future macro radar dimension
    48. 48. The increase of Offering Innovation is at expense of Operations Innovation
    49. 49. Only 3% rank Operations Innovation as the most important macro dimension for the future, 14% less than in todays primary radar</li></ul>Partnership<br />Most important future primary macro radar dimension – by sector<br /><ul><li>All companies in Tourism consider Customer Innovation the most important future dimension</li></ul>Eleven out of twelve sectors consequently list Offering as the primary area of centration for future innovation.<br />
    50. 50. Content<br />Analysis scope and approach<br /><ul><li>Key findings and insights
    51. 51. Offering oriented innovation
    52. 52. Innovation focus and effort
    53. 53. Innovation strategy</li></ul>Recommendations<br />16<br />
    54. 54. A majority of Nordic countries have an unfocused innovation approach and/or low innovation effort levels<br />17<br />Key finding 4 – Focus and effort<br />Innovation effort level<br />Innovation focus approach<br />68%<br />80%<br />32%<br />20%<br />High innovation focus approach<br />High innovation effort level<br />Low innovation focus approach<br />Low/medium innovation effort level<br /><ul><li>32% have a high innovation focus approach, whilst 68% have a low innovation focus approach
    55. 55. Only 20% of respondents have a high innovation effort level,whilst the remaining 80% experience low levels of effort</li></ul>Only 6 % of the companies have both high innovation focus approach and high innovation effort level.<br />
    56. 56. Size of companies and competitive landscape matter for innovation focus<br />Innovation focus vs. size of companies<br />18<br />Key finding 5 - Focus<br />Innovationfocus vs. competitivesituations<br />company<br />company<br />company<br />competition<br />competition<br />Focused innovation approach<br />Focused innovation approach<br /><ul><li>38% of companies in a low to medium competitive situation have a focused approach to innovation, whilst only 26% of companies in a market with significant or high competitive situation have a focused approach</li></ul>Unfocused innovation approach<br />Unfocused innovation approach<br /><ul><li>43% of small companies have a focused innovation approach to innovation, whilst only 19% of large companies are focused</li></ul>Large companies and companies operating in a competitive market should pay an even closer attention to their innovation focus areas. <br />
    57. 57. 19<br />Key finding 6 - Effort<br />High innovation effort levels are not common practice across the Nordic companies, with the exception of Finland<br />Country vs. Innovation effort level<br />Low innovation effort level<br />Medium innovation effort level<br />High innovation effort level<br /><ul><li>Nearly half of the surveyed companies in Sweden and Norway have low innovation effort
    58. 58. 39% of Finnish companies have a high innovation effort level</li></li></ul><li>Key finding 6 – Focus and effort<br />The Healthcare sector stands out as the most innovation focused sector, and the Service sector has the highest innovation effort<br />The three sectors with the highest innovation focus<br />100 %<br />0 %<br /><ul><li>86% of the companies within Healthcare have a focused innovation approach, making it the sector with the highest innovation focus
    59. 59. Tourism and IT are relatively focused, with a share of respectively 67- and 47% focused companies</li></ul>14%<br />20<br />Healthcare<br /># 1<br />86 %<br />33%<br />Tourism<br />67 %<br /># 2<br />53%<br />47 %<br /># 3<br />IT<br />Unfocused innovation approach<br />Focused innovation approach<br />The three sectors with the highest innovation effort levels<br />100 %<br />0 %<br /><ul><li>50% of companies within the Service, Telecom and Media sector have high innovation effort levels</li></ul>50 %<br />Service<br /># 1<br />50 %<br />25 %<br />50 %<br />Telecom<br /># 2<br />25 %<br /># 2<br />25 %<br />50 %<br />25 %<br />Media<br />Medium innovation effort level<br />High innovation effort level<br />Low innovation effort level<br />
    60. 60. Content<br />Analysis scope and approach<br /><ul><li>Key findings and insights
    61. 61. Offering oriented innovation
    62. 62. Innovation focus and effort
    63. 63. Innovation strategy</li></ul>Recommendations<br />21<br />
    64. 64. Key finding 8 – Innovation strategy<br />Companies with an innovation strategy have higher effort, internal alignment and innovation focus<br />22<br />Presence of innovation strategy vs. agreement level<br />Presence of innovation strategy vs. focus<br />Presence of innovation <br />strategy vs. effort<br />14 %<br />14 %<br />Equities<br />Equities<br />Equities<br />79 %<br />79 %<br />79 %<br />Low internal agreement level <br />Unfocused innovation approach<br />Low innovation effort level<br />Focused innovation approach<br />High innovation effort level<br /><ul><li>The survey indicates that companies are more likely to have a high innovation effort level if it has an innovation strategy in place
    65. 65. 71 % of Nordic companies with low agreement levels do not have an innovation strategy
    66. 66. The survey indicates that companies are more likely to have a high innovation focus approach if it has an innovation strategy in place</li></ul>The survey shows that creating an innovation strategy may bring effort, agreement and focus to higher levels.<br />
    67. 67. 23<br />Key finding 7 - Innovation strategy<br />The analysis indicates that more Nordic companies should build innovation strategies to deliver business value <br />Innovation strategy vs. profit margin and sectors<br />Innovation strategy vs. profit margin<br />Innovation strategy vs. sector<br />Highest share of innovation strategy vs. lowest share of innovation strategy<br />Innovationstrategy<br />Innovationstrategy<br />No innovationstrategy<br />No innovationstrategy<br /><ul><li>More than 60% of Energy companies have defined an innovation strategy
    68. 68. None of the Telecom companies answer they have defined an innovation strategy
    69. 69. Only 41 percent of the Nordic Companies claim to have defined aninnovation strategy</li></ul>Our results indicate that Nordic companies with a high profit margin are more likely to have an innovation strategy.<br />
    70. 70. The survey indicates undeniably important findings on how Nordic companies innovate<br />24<br />Overall findings<br />Key findings<br />1<br />Nordic companies are biased towards Offering oriented innovation<br />A majority of Nordic companies primarily innovate within the Offering dimension<br />2<br />Ten of twelve sectors have a majority of participants primarily biased towards the Offering dimension<br />3<br />Offering is rated as the most important future radar dimension<br />4<br />Nordic companies have an Unfocused innovation approachand put relatively low Effort into innovation<br />A majority of Nordic countries have an unfocused innovation approach and/or low innovation effort levels<br />5<br />Size of companies and competitive landscape matter for innovation focus<br />6<br />High effort levels are not common practice across the Nordic companies, with the exception of Finland<br />A minority of Nordic companies have an Innovation strategy, however companies with innovation strategy have higher innovation effort, higher innovation focus and better internal alignment<br />7<br />Only 41 percent of the Nordic companies have an innovation strategy<br />8<br />Companies with an Innovation strategy have higher innovation effort, higher innovation focus and higher internal alignment<br />Note: The terminology ‘Nordic companies’ used throughout the document refers only to the Nordic companies participating in the MMI program<br />
    71. 71. Content<br />Analysis scope and approach<br />Key findings and insights<br /><ul><li>Offering oriented innovation
    72. 72. Innovation focus and effort
    73. 73. Innovation strategy
    74. 74. Recommendations</li></ul>25<br />
    75. 75. Interestingly, the biggest future business challenge is linked to Operations, and Offering is not particularly important<br />26<br />Primary future business challenges vs. most important future Innovation focus<br />0 %<br />100 %<br />Future business challenges quotations;<br />“To create efficient value chains for each business area”<br />“Managing growth- operational excellence”<br />“Deliver sufficient quality to a very low price”<br />“Cutting production costs”<br />“Deliver complex and<br /> modern production<br /> solutions”<br />“Improving manufacturing<br /> processes”<br />“Becoming our customers<br /> 1st choice”<br />Future business challenge<br />Operations<br />44 %<br /># 1<br />Future Innovationfocus<br />Operations<br /># 4<br />3 %<br />Future business challenge<br />Customer<br />26 %<br /># 2<br />Future Innovationfocus<br />Customer<br />21 %<br /># 2<br />Future business challenge<br /># 3<br />Offering<br />17%<br />Future Innovationfocus<br /># 1<br />Offering<br />72 %<br />Future business challenge<br /># 4<br />Partnership<br />13%<br />Future Innovationfocus<br /># 3<br />Partnership<br />4 %<br />Why are Nordic companies so biased towards Offering oriented innovation when they list Operations as the biggest business challenge for the future?<br />
    76. 76. After the Innovation Radar deep-dive workshops, 70% of the companies expressed a desire to change their innovation approach<br />Innovation radar profile Company X<br />27<br />Change the mindset and innovation culture<br /><ul><li>Challenge your innovation focus
    77. 77. Develop a culture of innovation
    78. 78. Foster creativity and collaboration
    79. 79. Bring structure and discipline to all phases of innovation</li></ul>Company X , today <br />Company X, tomorrow <br />A change in mindset is needed for companies with a restricted view of innovation, in order to help succeed in capturing great opportunities in the future.<br />
    80. 80. Enhance the competitiveness of your company by creating a strategic approach to innovation management<br />28<br />Choose your innovation profile<br />Innovation approach<br />High<br /><ul><li>Look for dimensions that differentiate your company from its competitors
    81. 81. Find the appropriate effort and focus levels that match your company profile
    82. 82. Coordinate all internal functions and external partners to innovate around these differentiating dimensions of your business system
    83. 83. Create an innovation strategy that allows your business to benefit from innovation by distinguishing itself in the market</li></ul>Innovation focus approach<br />Low<br />Innovation effort level<br />High<br />Low<br />Build and/or revise your innovation strategy to increase the rate of return on innovation!<br />
    84. 84. Nordic Innovation<br />Stensberggata 25<br />NO-0170 Oslo<br />www.nordicinnovation.org<br />29<br />

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