New Delhi: With a fast changing business environment, Indian companies are feeling the pressure of adapting and being ahead of trends, to get a better grip of domestic and international markets. As the world is waking up to the high productivity levels of the Indian workforce, India Inc is upping its antennae and assigning higher strategic priority to innovation.
The India Innovation Survey, undertaken by CII and BCG, is the first of its kind in the Indian manufacturing industry based on the BCG Global Survey.
For 91% senior executives who responded to the survey, innovation is amongst their top three strategic priorities. Indian companies are far more innovation savvy than their global counterparts. Only 71% global companies’ today are assigning innovation high strategic priority.
The survey highlights the emergence of Innovation in Indian companies, akin to the quality movement of the 1980s and 90s. There is a concerted effort to build a culture of innovation in India.
An overwhelming 89% of respondents said the importance of innovation has increased manifold over the last decade.
39% felt that innovation has become critical to their organization. Only 7% felt its importance had increased only marginally while 4% felt it had remained constant.
74% companies are planning to increase funds invested in innovation. However, Indian companies are facing an “innovation paradox” as almost 60% respondents are dissatisfied with their returns on innovation. There is thus greater need for advocacy and awareness building in the area of innovation.
CII’s roadmap for innovation is focused on building awareness through a host of activities. The Survey helped develop an understanding of the innovation environment in the Indian manufacturing sector and to fine-tune efforts targeted at building an innovation culture in the country.
Another finding is that the Indian manufacturing sector is serious about innovation and has well defined outcomes that they expect from their innovation initiatives. Some of the companies detailed their expected outcomes, which sounded daunting and to that extent the role of innovating becomes that much more challenging.
The survey also revealed a gap between creating an innovation strategy and managing innovation as a business process. It found that this is largely due to the lack of the right framework to create innovations.
Innovation can be triggered by stimuli from external environment or a supportive eco system. Attempt has to be made to build an eco system where industry, academia and government work in unison to unleash latent creative potential. A system has to be created where companies can realize their desired innovation portfolio.
According to Dr. Surinder Kapur, Chairman, CII Mission for Innovation in Manufacturing.“CII’s Mission for Innovation in Manufacturing works closely with companies on the subject. The 15 Deming Awards and 111 TPM Awards received by companies has elevated their stature on the international corporate platform.”CII has organized various interfaces with leading names in the field like Prof. Shoji Shiba, Prof. Clayton Christensen, Prof. Whitney and the Blue Ocean Network.
CII is also building an eco system for supporting innovation in companies and has signed MoUs with Centre for Entrepreneurship Learning, Cambridge, VTT Technical Centre, Finland and the National Academies of Science, USA.