How boards innovate for growth

  • Technology should not be seen as the innovation, but rather the driver and the enabler of innovation.
  • A recent study found that customer-centric organisations are 60 per cent more profitable.
  • Boards and their executive should make deliberate decisions to look beyond the established industry and market boundaries to observe what’s taking place at the market periphery.

‘You must know when not to follow the traditional way of thinking.’
President and CEO, Nintendo, Satoru Iwata

Innovation has traditionally not featured on the board agenda nor explicitly been a part of boardroom conversations. Historically innovation has been viewed as the responsibility of the CEO and delivered across an organisation’s R&D, product development and marketing functions.

But given the rapid increase in societal change and technological and industry disruption, innovation is increasingly becoming imperative to strategic planning and governance.

Technological disruption is transforming our economies, our political systems and our customers. With a rate of societal change that doubles every few years many organisations are finding it increasingly difficult to remain sustainable and achieve growth. Over the past three decades the average life span of an ASX200 company has more than halved. Some business leaders predict 40% of the world’s major companies will not survive the next ten years.

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