Gaining competitive advantage
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Innovation and competition
Gaining competitive advantageInnovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey
12 April 2013
Nick KsCountry Managing Partner PwC HungaryGaining competitive advantageWhat is innovation?Why is innovation so important to us? How do CEOs see innovation and competitiveness? The 1M USD question: how shall big companies become entrepreneurial in these challenging times? 212 April 2013PwC21. What is innovation? Toyota defines innovation as an incremental process, Toyota implements a million new ideas a year, and most of them come from ordinary workers!
Do your innovations create value for customers or just novelty?312 April 2013
PwC31. What is innovation?
12 April 20134PwC41. What is innovation? 12 April 20135
PwC52. Why is innovation so important to us?12 April 20136Disruptive changes in more and more areasCountinous pressure on efficiency Rapidly changing customer needs+1: Employer branding: innovation is sexy
PwC62. Why is innovation so important to us?12 April 20137High priority for todays companies: cultural change neededOne of the priorities of PwC as Trusted Business Advisor -PRTM Management Consulting as part of PwC nowPwC has a dedicated Innovation Office and Global Innovation NetworkNew initiative: Global Innovation SurveyPwC Local initiatives Innovation@Poland
PwC73. How do CEOs see innovation and competitiveness?16th Global CEO Survey 1330 CEOs2nd Hungarian CEO Survey - 171 interviews were conducted with Hungarian CEOs between October and December, 2013
812 April 2013
CEOs priority: cost cutting and operational efficiency Meanwhile innovation isnt possible without investment
3. How do CEOs see innovation and competitiveness?912 April 2013PwC9
3. How do CEOs see innovation and competitiveness?1012 April 2013PwC103. How do CEOs see innovation and competitiveness?1112 April 201314%14%3. New investments, new profiles13%8. Innovation9%26. R&D2%1. Improving operational efficiency2. Implementing cost reduction
Which factors have improved your companys competitiveness in the past 12 months? PwC113. How do CEOs see innovation and competitiveness?1212 April 201331%26%3. Changes in taxation22%4. Competition22%14. Innovation3%1. Shrinking market2. Changes in legislation
What is the biggest challenge in your industry?PwC123. How do CEOs see innovation and competitiveness? - government and regulators
13februr 2013In Hungarian CEOs opinion what role does the government take on?And in comparison what should be its priority?Percentage of CEOsPwC134. An approach to corporate innovation by PwC - 112 April 201314First: Throw Out What You Don't Need.Don't weigh your innovation portfolio downClean the pipelineReduce complexityNext: Move Faster.Severe conditions punish slow movers. Now, Manage Capacity.Take a hard look at what you have on hand and what you will need to survive for the next 12 months.Find new sourcesIdentify constraintsConvert What You Have Into Something More Valuable.Be imaginative and boldCreate business model innovations for current productsInnovate on cost reductions for existing products and servicesLeverage strong customer loyalty to provide new customer experiencesAnd Finally: Keep Your Head.Dont let the current situation affect your basic good judgment. PwC144. An approach to corporate innovation by PwC - 212 April 201315Getting closer to your customers:...but how you develop it, how you sell it, how you deliver it, and what you sell with it.For example, over half of CEOs in our16th Annual Global CEO Surveyare increasing the emphasis of their companys innovation portfolio on business model innovations.Becoming systematic about innovation:Effective innovators have structures in place to encourage entrepreneurial thinking at employee level......while having strong leadership backing and centralised support.Companies are also looking to harness the power of ideas that come from outside their organisation.The long haul:Continuous innovators have a pipeline of incremental ideas as well as longer term big bets.How are you creating the business of tomorrow, even as you keep your organisation lean today?Embracing digital:The complete change of operational models as a result of digitalisation is driving many forms of innovation.Are you fully taking advantage of what digital means for your business?PwC15If we want to turn HungaryFrom Assembly lines in Electronics vs.
12 April 201316PwC16If we want to turn Hungary to high value added, innovative industries
12 April 201317PwC17