Companies that place emphasis on innovation and product development capabilities end up with three to seven per cent higher annualised revenue than those that don’t, according to a new report by Accenture. The company surveyed 351 G2000 companies in Canada, China, France, Germany, Italy, Japan, South Korea, the UK and the US and came to a simple conclusion – industry leaders are innovating on how they innovate.
They are creating a ‘total customer experience’, combining products, services, software and hardware. Two thirds (66 per cent) of organisations surveyed have said that their most successful innovations came from better customer experience. The report also says there won’t be an industry unaffected by this approach. The automotive industry will see revenues go up to $1 billion, and for consumer technology, up to $633 million.
“It is no longer enough to build the next generation car, music player, crane or plane to satisfy customers. Companies need to provide a superior experience to their rivals, from the point a customer shows interest in a product, through the research and purchase, to long after they own the item, with a series of services to keep the customer delighted,” said Richard Holman, managing director, Accenture Strategy.
“Companies across all sectors are rewriting the playbook for how they innovate and organize to drive growth, with leaders achieving between 3.5 percent and seven percent higher revenues that are attributable to distinct approaches to innovation, product development and solution development.”
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