gaining competitive advantage
DESCRIPTION
Gaining competitive advantage. Innovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey. 12 April 2013 Nick Kós Country Managing Partner PwC Hungary. Gaining competitive advantage. What is innovation? Why is innovation so important to us? - PowerPoint PPT PresentationTRANSCRIPT
Gaining competitive advantageInnovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey
12 April 2013
Nick KósCountry Managing Partner PwC Hungary
PwC 2
Gaining competitive advantage
1.What is innovation?2.Why is innovation so important to us? 3.How do CEOs see innovation and competitiveness?
4.The 1M USD question: how shall big companies become entrepreneurial in these challenging times?
12 April 2013
PwC 3
1. 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?
12 April 2013
PwC
1. What is innovation?
12 April 20134
PwC
1. What is innovation?
12 April 20135
PwC
2. Why is innovation so important to us?
12 April 20136
• Disruptive changes in more and more areas• Countinous pressure on efficiency • Rapidly changing customer needs+1: Employer branding: innovation is sexy
Intrapreneurship
PwC
2. Why is innovation so important to us?
12 April 20137
• High priority for today’s companies: cultural change needed
• One of the priorities of PwC as Trusted Business Advisor -PRTM Management Consulting as part of PwC now
• PwC has a dedicated Innovation Office and Global Innovation Network
• New initiative: Global Innovation Survey• PwC Local initiatives – Innovation@Poland
PwC 8
3. How do CEOs see innovation and competitiveness?
• 16th Global CEO Survey – 1330 CEOs• 2nd Hungarian CEO Survey - 171 interviews were conducted with Hungarian CEOs between October and December, 2013
12 April 2013
CEOs priority: cost cutting and operational efficiency…
…Meanwhile innovation isn’t possible without investment
PwC
3. How do CEOs see innovation and competitiveness?
912 April 2013
PwC
3. How do CEOs see innovation and competitiveness?
1012 April 2013
PwC
3. How do CEOs see innovation and competitiveness?
1112 April 2013
14%
14%
3. New investments, new profiles 13%
8. Innovation 9%
26. R&D 2%
1. Improving operational efficiency
2. Implementing cost reduction
Which factors have improved your company’s competitiveness in the past 12 months?
…
…
PwC
3. How do CEOs see innovation and competitiveness?
1212 April 2013
31%
26%
3. Changes in taxation 22%
4. Competition 22%
14. Innovation 3%
1. Shrinking market
2. Changes in legislationWhat is the biggest challenge in your industry?
…
PwC 13
3. How do CEOs see innovation and competitiveness? - government and regulators
február 2013
The government has reduced the regulatory burden on corporations
The government has maintained a level playing field despite having stakes in private enterprises
The government is taking adequate steps to improve the country’s infrastructure (e.g. electricity, water supply, transport, broadband)
The government supports innovation in the private sector
0 5 10 15 20 25 30 35
11
11
20
30
In Hungarian CEOs opinion what role does the government take on?
And in comparison what should be its priority?
Reducing poverty and inequality
Ensuring financial sector stability
Creating and fostering a skilled workforce
0 10 20 30 40 50 60 70
29
59
60
Percentage of CEOs
PwC
4. An approach to corporate innovation by PwC - 1
12 April 201314
First: Throw Out What You Don't Need.• Don't weigh your innovation portfolio down
• Clean the pipeline
• Reduce complexity
Next: 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 sources
• Identify constraints
Convert What You Have Into Something More Valuable.• Be imaginative and bold
• Create business model innovations for current products
• Innovate on cost reductions for existing products and services
• Leverage strong customer loyalty to provide new customer experiences
And Finally: Keep Your Head.• Don’t let the current situation affect your basic good judgment.
PwC
4. An approach to corporate innovation by PwC - 2
12 April 201315
Getting 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 our 16th Annual Global CEO Survey are increasing
the emphasis of their company’s 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?
PwC
If we want to turn HungaryFrom Assembly lines in Electronics vs. …
12 April 201316
PwC
If we want to turn Hungary… to high value added, innovative industries
12 April 201317