This document summarizes an innovation program in Turkey called İnovaLİG. The program is organized by the Turkish Exporters Assembly and A.T. Kearney consulting firm to help Turkish companies improve their innovation capabilities and help Turkey achieve its 2023 export growth targets. The program involves companies completing a survey to assess their innovation management strengths and weaknesses, with top performers advancing to finals and championships in various innovation categories. The goal is to move Turkish companies from having isolated innovative ideas to generating repetitive innovation successes and high value exports.

1. The Turkish Perspective 53Brands/Lorem
INNOVATION
INNOVATION,TECHNOLOGY
Content: P59 Twentify: Little Ideas, Great Success P58 Editor: M. Bahadırhan Dinçaslan
INNOVATION:
Openingthenextchapterin
Turkey’ssuccessstoryas
globalexportchampion
Turkey has set ambitious
targets and vision for key
industries towards 2023.
On the way to achieve these
goals, Turkish Exporters
Assembly (TİM) highlights
and supports the importance
of innovation driven export
growth. The shift from
volume driven towards value
driven export will allow
Turkish business not only to
realize more growth. Even
more important is the shift
towards a more resilient
growth model with stable
revenue streams.
As a change agent for the
Turkish export industry, TİM
aims to transform Turkey’s
outstanding creativity
potential into high value-
added products and services
through a strict focus on
innovation management.
While innovation is a nice
word in each CEO speech
and company vision, it
turns out to be one of the
most challenging items
on the daily CEO agenda.
How to win in innovation?
Global research shows that
it is less the unique idea in
the hidden laboratory of a
talented researcher but the
leverage of the full company
The Turkish Perspective
Companies that ranked
in top three places in
five different categories
received their awards
from President Recep
Tayyip Erdoğan.
Turkey is walking
in the path of
reaching its 2023
target without a
doubt. Adopting
innovation in to
business life is
one of the most
important steps
taken at this stage.
BuildingTheFuture:

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Brands/InnovaLeague54
talents across functions in
close collaboration with their
suppliers and customers.
Innovation therefore is not
anymore good or bad luck
but as in professional sport
the reflection of daily hard
work, diligent management
and the allocation of resources
where the matter most.
Global research studies also
proof that only a handful of
countries has been able to
achieve this shift towards a
sustainable success across key
industries.
İnovaLİG:Movingfrom
the“onegreatideainlife”
towardsexportsresults
drivenbyrepetitive
innovationsuccess
To fulfill the vision 2023
as one of the top 10 global
economies and outperform
markets with cheaper access
to raw material and cheaper
labor force it is therefore
key for Turkey to ensure
its business leaders are
addressing this strategic
transformation with
maximum focus along the
next years. TİM’s leadership
knew from the beginning
that this shift would require
significant efforts and
lot of patience along the
implementation.
To help achieve this
target, global management
WhatisİnovaLİG?
İnovaLİG, organized by
Turkish Exporters Assembly
and A.T. Kearney, is the
first innovation capability
assessment and development
program in Turkey. For
Turkey to reach 2023 targets,
innovation needs to be at the
core of all strategies. In this
journey, the aim is to create
awareness of innovation
in both public institutions
and private enterprises and
support companies even at
micro level to realize their
targets by taking the outlined
way in innovation strategy
project, towards 2023.
İnovaLİG is based on
“IMP3rove Academy”
methodology, which is
organized by A.T. Kearney in
collaboration with European
Commission in 17 European
countries and the experience of
A.T. Kearney as being the host
of “Best Innovator Club” which
enables the most innovative
European companies to
discuss and share their ideas
on a certain topic. Based on
this solid expertise, İnovaLİG
will add significant intellectual
capital to Turkey.
İnovaLİG’s process consists
of three major phases after
registration. In the first
phase, applicants fill out a
consulting firm, A.T.
Kearney was chosen as the
long-term strategic partner
supporting TİM on this path
in two collaborative projects
to enhance the innovation
awareness and capability
landscape in Turkey.
These ongoing projects
are National Innovation
Strategy 2023 which will
outline a roadmap at macro
level for Turkey to realize
the ambitions of innovation
driven export growth as a key
element to reach the 2023
targets and İnovaLİG which
aims to support Turkey at
micro level to reach world
best practices by moving
from creative ideas pool
towards profitable innovative
goods and services.
Innovation
Organisation
andCulture
Innovation
Strategy
Innovation
Results
Source:A.T.Kearney
Innovation
Lifecycle
Processes
Enabling
Factors
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Turkey’s breakdown of exports by unit value range
Source: CEPII, WTFC database, A.T. Kearney
The global economic turmoil hampered Turkey’s export vision as
the unit value of exports has decreased significantly
2000 2002 2004 2006 2008 2010 2012 2014
15%
20%
40%
45%
25%
50%
35%
30%
+16%
-17%
High value Low valueMedium value
Achieving 2023 targets requires a positive step change in high value exports
Turkey’s exports by valueChallenges
Growing
deficit with
trade
imbalance
Domestic
manufacturing
capability
constraining
competitive-
ness
Economic and
political
turmoil and
instability
• Higher import growth than export growth:
– Limited product variety
– Raw material and capital goods
import due to missing components of
industry value chains
• High dependence on imported goods
• Limited technology, know-how and
infrastructure availability
• Limited modularity and lack of inter-
industry integration
• Geopolitical instability across EMEA
• Volatility in FX, decrease export unit
values and increase import unit values
Global economic turmoil
Wideninggap
A
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Description
Innovation strategy
• Vision and strategic focus on innovation
• Implementation of strategy
Organization and culture
• Roles and responsibilities
• Organizational structure
• Organizational culture and climate
Innovation life cycle processes
• Idea management
• Product/Service/Business
Model/organizational or Process
Development
• Launch and Continuous Improvement
Enabling factors
• Project Management
• Human Resources and Incentives
• IT and Knowledge Management
Innovation results
Innovation life
cycle management
Enabler, e.g. Human Resource Management, IP-/Knowledge
Management, Project and Program Management, Controlling,
and IT
Idea
management
Product/ service/
business model/
organisation/ pro-
cess development
Launch/
Continuous
Improvement
Innovation
organization
and culture
In-
novation
strategy
Innovation
results
1
2
3
4
5
1
2
3
4
5
A.T. Kearney "House of Innovation"
MAY2016 ISSUE34

3. The Turkish Perspective 55
capabilities of the companies,
first time in Turkey.
With the completion
questionnaire process and
after companies receive their
confidential assessment report;
the competition will proceed
from an internal review exercise
to more of a stage based on
external communication and
open dialogue. Jury for the
finals consists of leading figures
from business, academia and
public institutions. Finals
took place in Innovation Week
2015 and the jury announces
innovation champions, in
December 2015.
comprehensive survey, which
enables the assessment
of current capabilities. At
the end of the first phase,
each participant receives an
individual benchmark report,
comparing the participant
with local and international
benchmarks. Thanks to this
benchmark, report enables
participants to assess their
competencies in multiple
dimensions of A.T. Kearney’s
IMP3rove innovation
management framework.
After completion of survey
submission and evaluation
period, finalist companies are
identified. These companies
are being visited for further
evaluation on innovation
management capabilities. As
the last step of the program,
finalists present their
innovation management
approaches to the jury and
champions in each dimension
of innovation management
framework are selected and
announced by the nominated
jury.
In its third year, İnovaLİG is
utilizing this proven approach,
refined with positive feedback
of participants and the jury.
In 2014 and 2015, next to 500
companies have registered to
İnovaLİG in each year, which
is an extreme success for a
program that aims to assess
innovation management
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Registration First round Semi final Final Award ceremony
• Firms can register
until May 31, 2016
• Firms will get access
to success stories,
publications and
training materials
• Firms will also be
invited to
conferences that will
be held on the
subject of innovation
• Firms will complete
online innovation
survey and then will
be delivered ~100
pages of assessment
report
• 250 firms will be
ranked along 5
dimensions of
innovation based on
examination of
company
assessment reports
• Top 10 firms in all 5
innovation
management
dimensions, will
qualify for the semi
final
• 25 finalist firms
present on their
innovation
approaches and
methodologies in
front of the grand jury
• Based on jury
assessment, top 3
firms in each
dimension will be
deter-mined. Top
firms in all 5
categories will be
awarded with the title
"2016 İnovaLİG
Champion"
Source: A.T. Kearney
• Semi finalists will be
visited by
A.T. Kearney & TİM
innovation
consultants and
meetings will be held
• According to meeting
results and jury
assessment, top 5
firms in each
dimension of
innovation, will
qualify for the final
İnovaLİG 2016 flow chart – Deadline for registration 31st of May
February June September November December
Source:A.T.Kearney
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1
2
1
148
4
10
3
10
0
1
2
4
All participants
12
488
2
3
10
52
4
2
4
1
5
1
11
46
Top 10 companies
13
20
24
13
22
18
26
18
32
15
36
16
12
2
37
24
6
27
1
9 9
4
6
263
0
0
2
8
52
0
22
All participants
0
2
3
9
Top 10 companies
488
29
65
Eskişehir
Gaziantep
Adana
Tekirdağ
İstanbul
Kocaeliİzmir Konya
Bursa
OtherAnkara
Denizli
İnovaLİG participants and top 10 companies breakdown
Breakdown by sector Breakdown by city
Automotive
Energy
Machinery & machinery accessories
Chemicals & chemical products
Other industrial commodities
Electrical-electronics & servicesInformatics services
Textile & raw materials Cereals, oils seeds
Logistics
Apparel
Education services
Consulting
Scientific R&D
Other
Wood & forestry products
Cement, glass, ceramic & soil products
Ferrous & non-ferrous metals
Source: A.T. Kearney
Source:A.T.Kearney

4. Brands/InnovaLeague56
JourneyofİnovaLİG
Champions
In the competition, companies
that ranked in top three places
in five different categories
received their awards.
Innovation champions of
Turkey received their awards
from President Recep
Tayyip Erdoğan, Minister of
Economy Mustafa Elitaş and
TIM president Büyükekşi.
In the Innovation Strategy
category, Kordsa Global; in
the Innovation Organization
and Culture category,
IETT; in the Innovation
Life-Cycle category,
Insurance Information and
Monitoring Center (SBM);
in the Innovation Resources
category, MIR AR-GE and
in the Innovation Results
category, Teklas became the
champions.
In the Innovation Strategy
category, Brisa and Procter &
Gamble; in the Innovation
Organization and Culture
category, Kümaş and SOCAR;
in the Innovation Life-Cycle
category, Koruma Temizlik
and Shell & Turcas; in
the Innovation Resources
category, İSTAÇ and Yiğit
Akü in the Innovation Results
category, Berdan Civata and
Triodor Software achieved
second and third places
respectively.
In his closing speech,
President Recep Tayyip
Erdoğan expressed his
thanks to all those involved
in the organization of
Turkey Innovation Week
and contributed with
their hard work, projects,
ideas, experience and
recommendations, and
congratulated TIM for the
organization. Erdoğan stated
that this year 488 companies
participated to İnovaLİG and
this number will increase in
the coming years. Erdoğan also
congratulated the companies
that won awards at İnovaLİG
and said, “I wish further
success to these companies in
the future”.
Erdoğan also stated that
he was so happy to see that
İnovaLİG has been taken to
the global level. Erdoğan said
that founding of InovaTIM
for young innovators is a
major step in encouraging
young entrepreneurs and
expressed future success to
InovaClub.
Erdoğan stated that Turkey
has gone through a great
transformation and change
in every area as well as in
economy and said, “You’ve
witnessed this enormous
change closely. Now we have
goals for 2023. Policies and
practices that have brought
Turkey to current times were
very important but we cannot
reach our 2023 goals with
them. We should raise the
bar, develop new policies and
implement them without
hesitation. We will focus more
on innovative works with high
brand value and technology
intensive rather than on labor-
intensive projects. Being able
to design our own products
has never been so important
and vital. To achieve this, we
need to place emphasis on
innovation and R&D. Turkey
ranked 74th in the global
innovation index in 2012.
This year it went up to 58th
position. This picture shows
our country’s transition from
efficiency based production to
innovation based production
but we’ve still got a long way
to go.”
Mehmet Büyükekşi who
started the third day of
Turkey Innovation Week
by saying, “Four years ago,
Turkey Innovation Week was
visited by only 12 thousand
people. This year, around
50 thousand innovation
enthusiasts visited in 3 days.
For 3 days, we listened to 29
local and 14 foreign speakers.
Total of 99 R&D centers,
reinforcement technology, the
company aims to sustain their
leadership in this industry
and to become the leader in
composite and construction
materials market by utilizing
innovation effectively. Kordsa
Global decided to participate
in İnovaLİG program to
evaluate its innovation
capabilities and how the
organization is positioned in
terms of innovation vis-à-vis
other Turkish companies. The
self-evaluation survey helped
the company to locate which
innovation topics it should
address for improving the
contribution of innovation
strategy to its performance.
Kordsa has started to
take innovative actions by
evaluating its innovation
processes based on innovation
organization and culture,
innovation lifecycle, enabling
factors, and innovation results
as part of the comprehensive
innovation pyramid. As
the champion of Turkish
competition, the company
now strives to become the
global leader in innovation.
International examples also
show that champions highly
improved their innovation
capabilities with the assistance
of İnovaLİG programs. For a
British automotive company
that targeted new segments but
lacked required capabilities,
techno parks, science centers
and universities and 471
designs and R&D projects
were featured at Turkey
Innovation Week. I’d like
to thank our Ministry of
Economy and our Minister of
Economy Mr. Mustafa Elitaş
for supporting this great event
and our strategic partners
Arçelik, Sabancı Holding,
Türk Ekonomi Bankasi, THY
and Turkcell which joined
us this year, who have been
supporting us for the last 4
years and our partner country
the Netherlands. I would also
like to thank TIM Innovation
Committee, all InovaTIM
members and the professional
team of TIM.”
Büyükekşi said, “We’ll
create high added value in
industry and exports with
branding and innovative
designs. With its powerful
and dynamic economy, its
exports with added value,
with its industry producing
technology, and its brands
spread all over the world,
Turkey will become the
shining star of its region and
the world. We believe with all
our hearts that it will happen.”
Kordsa Global, the 2015
champion in innovation
strategy category, has already
established innovation as
a pillar of its organization.
Being the global leader in tire
MAY2016 ISSUE34
Deadline for İnovalig
applications is 31th of May.

5. The Turkish Perspective 57
İnovaLİG consultants built
a roadmap that targets
innovation lifecycle, quick-
win areas and setting up an
R&D management system.
The company adopted the
İnovaLİG recommendations
and returned to profitable
growth within a year with
the help of outstanding
performance in new segments.
CEOAgenda:Providing
impactandlong-term
advantagebeyondR&D
Regardless of their size,
participants mobilized
different departments and
functions in their companies.
Mobilization in such scale
enabled employees that were
previously not responsible
from innovation initiatives to
support these processes. It also
raised the awareness of the
subject throughout firms even
just by completing the survey.
Key lesson of İnovaLİG
program is CEO driven
innovation management is
the common success receipt
across industries. Oftentimes
companies equate innovation
with R&D and measure
their innovation results by
number of patent grants. As a
result, innovation is driven by
R&D department only, with
limited contribution from
other departments and not
agile enough to capture the
opportunities in the market.
This model of innovation
management is a key barrier
in translating the investments
in R&D and innovation into
sustainable top line growth
and profitability. İnovaLİG
assessment results also prove
this point as the largest gap
between Turkish companies
and their European peers is in
the İnnovation Results category.
Moreover, joint efforts of
the departments and cross-
functional teams created new
synergies. As a result, the first
phase starting with the simple
registration led to a stage
where companies reached to
a higher activity level. In this
way, participants have already
strengthened the monitoring
of innovation management
processes.
The advantage of İnovaLİG
is not only to incentivize
companies but also to jointly
establish the principles of
how to innovate and establish
a collaborative learning
environment. As a long-
term program, İnovaLİG
aims to enable firms to enter
a continuous and efficient
innovation management
cycle and collect the fruits of
their innovation capabilities,
developed in mid to long
term, as growth and efficiency.
The program partner A.T.
Kearney’s database, based
on 7 years of experience and
thousands of companies in
17 European countries, also
proves that companies with
high innovation capabilities
are not only growth
champions on the top-line,
but also have efficient cost
structure at the bottom-
line. Such benefits carry
a particular relevance for
the current state of Turkey
where the entrepreneurial
culture is strong but
innovation management is an
improvement area especially
for small and medium sized
enterprises. SME’s could
significantly contribute
to 2023 targets and
ambitions with innovation
driven exports. From this
perspective, İnovaLİG
program is poised to provide
much needed momentum to
Turkey by helping to mobilize
SME’s, and more.
Nextstep:Accelerating
Successthrough
collaborativeInnovation
Success stories show that
innovation management best
practice is not just to mobilize
the company but also
customers and value-chain
partners such as suppliers.
A.T. Kearney studies
document that collaborative
innovation with outside
partners is not systematically
practiced and could be the key
success factor in innovation
management. Utilizing the
voice of the customer in
innovation processes enables
the company understands
how customers define value
and prioritize the ideas in
the development pipeline
accordingly. Furthermore,
establishing an outcome
driven feedback loop ensures
innovation efforts are focused
with clear view of required
improvements.
Similarly, supplier
driven innovation is a
common practice of the
leading innovators. Early
involvement of the suppliers
in innovation process enables
the company to launch its
offerings more quickly and
long-term collaboration to
exploit suppliers’ innovation
capabilities could help
the company to lower the
execution risk, increase the
quality of its products and
services and achieve more
successful commercialization.
Through its holistic
approach, innovation
management framework of
İnovaLİG program highlights
these often-ignored areas and
helps companies identify the
gaps and devise a roadmap to
address improvement areas.
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İnovaLİG champions vs. STOXX 50 average
Source: A.T. Kearney
Share price
EURO STOXX 50, 2003 - 2014
Source:A.T.Kearney