Innovation Index

Version 5

    As your company competes in the increasingly connected global economy, the ability to innovate is a key success factor. The question now isn’t whether you should innovate, but where you should innovate. Years of research have shown that companies that choose the right areas to innovate are rewarded through sustained market leadership. In conjunction with Anthony Paoni, Professor of Technology and Innovation at the Kellogg School of Management, SAP has designed a program to help you evaluate where and how you innovate. This Innovation Index framework becomes a valuable assessment tool for prioritizing your company’s innovation roadmap.


    Sustained market leadership is the proven reward of organizations that choose the right areas to innovate. Market Leaders (companies that grow sales and market capitalization faster than peers) returned 183% percent total shareholder return over a recent four year period; significantly higher than their peers.


    Based on research, engagements, and executive interviews, we identified four common attributes that market leaders do better than anybody else:


    Customer Centricity: They have strong insights into customer behaviors, put their customers’ customer at the heart of product and service design, and deliver a personalized and seamless customer experience.


    Leadership and Talent: They have a deep leadership pool, drive a culture of continuous learning and collaboration, and use metrics to drive strategy to execution (all supported by the appropriate incentive structures).


    Execution Excellence: They are effective and efficient with internal and external coordination, have best-practice processes in place supported by a well-functioning IT infrastructure, and leverage process and technology to rapidly bring new ideas to market.


    Information Advantage: They not only have efficient information flow, they use information to drive insight and predictively model the future.


    An example is Under Amour, a leading maker of athletic apparel, footwear, and accessories. Under Armour invested in Information Advantage and Execution Excellence by improving their financial planning and analysis process. As a result, they achieved speedier reporting, greater visibility into performance, and access to the business knowledge that enables better decision making.


    Additionally, Under Armour invested in Leadership and Talent by providing the infrastructure it needed to manage the demands of the company's rapid growth. With a new system in place, Under Armour has been able to align goals from the executive team all the way through to its associates and improve the business impact of its HR systems platform.


    Under Armour’s success is evidence that investing in innovation capabilities yields positive results. SAP has created a program to help you understand your organization’s Innovation Index profile and if you’re well positioned to achieve sustainable market leadership.

    Again, the question isn’t whether you should innovate, but where you should innovate. To understand your own Innovation Index profile, you can simply answer the questionnaire: SAP is also available to guide your organization through the process in a facilitated design-thinking based workshop setting. Take the few minutes required to fill out a survey and begin your transformation into becoming a Market Leader.