Study: The Puzzle of Innovation in China | Page 15

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INNOVATION
BENCHMARKING
SELF-ASSESSING INNOVATION PROWESS
Survey results confirm:
Innovation performance
is positively related to
sales growth
Despite everyone talking about innovation, it is often not easy
to judge one’s own innovation prowess. Therefore, we have
developed the goetzpartners’ Innovation Benchmarking Tool,
which outlines a company’s individual innovation capabilities
and positions it against competitors. It sets a firm in the context
of its competitive environment and thereby identifies
not only potential areas for improvement but also derives the
basis for the development of concrete strategic measures.
Our survey confirms that innovation performance is positively
related to sales growth, i.e. companies that report higher
innovation performance also indicate above-average sales
growth rates.
With the Innovation Benchmarking Tool, a firm’s innovation
performance and sales growth rate can be compared against
competitors and top innovators. It positions the firm within
an innovation matrix (see fig. 13) according to its sales growth
rate and its overall innovation prowess. Depending on its
positioning, the firm can either be classified as lagging importer,
prospering importer, slow innovator or innovative performer.
In order to change positioning, it is necessary to take a deeper
look at the seven dimensions of innovation that determine
overall innovation prowess.
FIG. 13 І INNOVATION MATRIX
Participants
Top Innovators
Your Company
All Participants
SALES GROWTH IN LAST 3 YEARS COMPARED
WITH PEER GROUP AVERAGE
10%
PROSPERING IMPORTER
LAGGING IMPORTER
INNOVATIVE PERFORMER
SLOW INNOVATOR
20% 30% 40% 50% 60% 70% 80% 90%
INNOVATION PERFORMANCE INDEX