Is Innovation Thriving in the Fortune 50 Companies?

By: Shail Khiyara | February 6th, 2013

Innovation is the lifeblood of a business. Many organizations are beginning to realize that investing in their people through crowdsourcing helps drive innovation, revenue and competitive advantage. In fact, the Corporate Executive Board found that companies with transformative innovation had 30 percent in sales from new products vs. 14 percent of others that did not have transformative innovation.

Collaboration is key to innovation. General Electric’s Global Innovation Barometer found that 87 percent of senior business executives believe their firm would innovate better by partnering than on their own. Advances in social software have helped businesses better promote innovation within and foster collaboration. According to recent research from McKinsey Global Institute, 72 percent of companies use social technology in some way, but very few are using it to its full potential. Sales pipelines and Financial reports are not a coincidence. They are built systematically with a consistent process. Such is the nature of Innovation and Idea pipelines.

While companies continue to value innovation and in some instances make it their core brand proposition, they still struggle to derive innovation leverage from their employee, customer and supplier networks. Spigit recently examined the Fortune 50 companies to see just how big of a role innovation plays among the leading organizations in the U.S. We took a close look at company demographics, such as location and size, in order to hone in on any interesting patterns, as well as how ‘innovation’ was used in the company branding efforts.

Our research is the first in ‘Deconstructing Innovation’ down to its roots.
Deconstructing Innovation – To analyze and identify the essential elements for repeatable crowd empowered innovation and engagement. 

Below we’ve provided an overview of our key findings:

  • Are companies that claim a focus on innovation designating a leader to drive the cause?
    • More than half of the Fortune 50 mention innovation in their messaging, yet only 6 percent have appointed a Chief Innovation Officer or similar C-suite position.
  • Does size matter? Are smaller companies with fewer employees more apt to focus on innovation branding than larger companies that have more employees?
    • Over 65 percent of larger companies (more than 100,000 employees) mention innovation in their branding efforts, as opposed to only 29 percent of smaller companies (less than 100,000 employees).
  • Do companies based in the Silicon Valley, a place some would consider to be the hub for innovation, focus more on innovation than those in other parts of the U.S.? Or, is the Big Apple more ripe for innovation?
    • 73 percent of companies based in the NYC area mention innovation in their branding efforts and websites compared to only 50 percent of those based in the San Francisco Bay Area.

Does your company place a focus on innovation all day, every day? Is it engrained in your company’s DNA? Share with us your thoughts and how you plan to increase innovation in 2013.