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MOREBIGBETSHowCompaniesareEmbracingBolderInnova7on

DrTimJones|Innova7onLeaders|16March2017

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Morecompaniesaremakingbiggerinnova7onbets

§  TheInnova7onLeadersresearchshowsanincreasinglynumberofhigh-growthcompaniespreparedtotakegreaterriskandmakebigbets.

§  Ratherthanfocusjustonincrementalgrowth,theyarebeingbolderandareseekingtodevelopmoreradicalinnova7onopportuni7es.

§  Despiterequiringsignificantinvestmentandofferingnoguaranteeofsuccessthisapproachhasbeentransforma7onalforsome.

§  Whereandwhyisthishappeningandwhathaschangedthathasmadethisapproachmorecommon?

hSps://www.linkedin.com/pulse/more-big-bets-bolder-innova7on-7m-jones

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Thesearesomeorganisa7onsmakingbolderinnova7onmoves

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Wecanseemorecompaniesbeingbolderintheirgrowthambi7onsandtakingmoreradicalmovestoachievethese

Majororganisa7onsareincreasinglypreparedtoplaceintelligentbigbetsforfourkeyreasons.

1.  Theyhaveadesiretoreplicatethesuccessesbeingachievedbyothers;

2.  Theywanttomi7gatethethreatsofdisrup7onfromfast-growingunicornstart-ups;

3.  Thecorporateappe7testoriskischanging;and

4.  Morebusinessleadersarewillingtobebolder.

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Replica7ngSuccess

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SomeMajorBets

§  IBM:Cogni7veintelligenceandmachinelearning

§  Microso6:Botsandconversa7onplaZorms

§  Cisco:Smartci7es,theInternetofEverythingand

cyber-security

Leadershaveachievedmajorshare-pricegrowth.Otherswantsimilarresultsandarealsoadop7ngboldergrowthambi7ons

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Mi7ga7ngDisrup7on

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Forsomesectorsthethreatofdisrup7onisbecomingmoreevidentandaccelera7ng–proac7veac7oniswidening

§  Aimingfor500mroomnightsperyearwithin5years,1bnby2025

§  MarrioS,Hilton,IHGandAccorhavejustover3mhotelroomsintotal

§  Newop7onsforgenera7ngsignificantgrowthoneveryagenda

§  ‘uberisa7on’isnowanestablishedwayofdescribingnewcompe77on

§  Severalcompanieshavestartedtheirownmoreradicalbusinessmodels

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Appe7teforRisk

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Giventhesuccessesandtheassociatedgrowthinshareholdervalue,marketsen7menttomoreradicalinnova7onischanging

§  InvestorsincreasinglyexpectthesignificantR&Dinvestmentsbeingmadeinmajororganisa7onstodeliverhigherlevelsofdouble-digitgrowth

§  Inareasoftheinvestmentcommunity,riskisbeingmorewidelyaccepted

§  35%ofthecompanieshaveradicalinnova7onontheirboardagenda

§  Doubledigitgrowthisnotjustforunicornsandstart-ups

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BolderLeaders

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Today’sleadersdon’thavetogainconsensusandsocanmakemajorfuturefocuseddecisionswithoutexcessiveconsulta7on

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BecomingBolder

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Weseethreepivotalissuestoaddressinordertobothmakeintelligentbetsandsuccessfullyscaletohavemajorimpact

ForesightandInsight

Collabora7onandSharing

Incuba7onnotIsola7on

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AboutInnova7onLeaders

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Forthepast15yearswehavebeeniden7fyingandprofilingtheworldsmostinnova7vecompaniesacross25sectors

Thispublishedanalysishasconsistentlyiden7fiedorganisa7onsthatsubsequentlydeliverhigherorganicgrowth

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Ourmodelanalysesthe1500largestcompaniesinthesesectorsandsystema7callyselectsthetopinnovators

25Innova7onLeaders

Singlecompanyforeachsector

75Companies

25Sectors1500Companies

Largestcompaniesacross25sectors

25mostinnova7on-focusedsectors

Top3companiespersector

Quan7ta7veAnalysisThroughoutProcess

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Acrossthe25sectorsassessed,thecurrentinnova7onleadersareclearandshowhowbestinclassinnova7onprac7ceisevolving

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A2012back-testoftheInnova7onLeadersagainstS&P500showedclearoutperformanceovertheprevious10years

CompoundAnnualGrowthRate:14%,StdDev:20%,Alpha:12,Beta:0.74

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MoreInforma7on

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Formoreinforma7onpleaseseetheInnova7onLeaderswebsiteTodiscusspleasecontactresearch@innova7onleaders.org

Forafullar<cleonMoreBigBetssee:hSps://www.linkedin.com/pulse/more-big-bets-bolder-innova7on-7m-jonesFollowthisresearchon@innova7onldrshSps://www.slideshare.net/innova7onleaderswww.growthagenda.com