Businesses across the workforce are placing a greater priority on innovation, but the vast majority are not ready to act on innovation strategies.
This paradox was revealed in Boston Consulting Group (BCG)18th Annual Innovation Study, which shows how corporate “innovation readiness” has plummeted by 17 percentage points since 2022.
The research found that 83% of companies see “innovation as a top-three priority,” but only 3% of companies in 2024 qualify as “innovation ready,” meaning their organization is prepared to act on their priorities.
The study surveyed over 1,000 global senior innovation executives and identifies that having an unclear strategy is a major barrier for more than half of the companies.
Trends are also pointing towards experimentation of Generative AI (GenAI) for innovation purposes. While the majority, or 86%, of companies are experimenting with GenAI, only 8% have reportedly managed to scale its application effectively.
This suggests that firms are more focused on improving processes with GenAI rather than integrating it into their core business strategies. It’s a clear sign that without a cohesive and well-aligned strategy, the potential for transformational innovation remains highly limited.
With innovation readiness so starkly low, many companies should take careful glance on how they approach business-wide strategies and how they execute those decisions. It’s not just about prioritizing innovation as an abstract concept but how well it is incorporated into an organization that makes the difference.
