Survey Reveals Corporations With Centralized Innovation Departments More Likely to Have Focused Efforts

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Innovation Industry Pulse Poll data indicates that organizations with centralized structures have firmer goals in place to manage innovation and pursue game-changing opportunities

While many organizations are developing enhanced innovation capabilities, structure and measurement continue to remain areas for improvement, as most companies are still experimenting

Organizations with centralized innovation structures are more likely to have firm goals in place to manage innovation and pursue game-changing opportunities, according to a new Innovation Industry Pulse Poll by Innovationedge, a leading U.S. – based strategy, management and innovation consultancy.

The Innovation Industry Pulse Poll is based on a highly targeted survey of executive and management-level innovation professionals from global organizations. The survey captures the current pulse of the innovation industry on leadership, measurement and strategy.

In the survey, 88 percent of respondents with centralized innovation structures said their long-term innovation efforts were focused on “changing the game,” as opposed to only 43 percent of respondents who work with decentralized systems. About one-third of respondents had a combination of centralized and decentralized approaches. However, in response to a combined approach, one respondent indicated that, “strategic direction and development is mostly centralized.”

Generally, centralized innovation departments are located in corporate headquarters and provide counsel to all divisions of the corporation. Organizations with decentralized structures operate their innovation efforts at the division level and may have many separate innovation teams. Of the survey respondents, 41 percent indicated their organizations have a de-centralized approach, 27 percent indicated they have a centralized approach and 32 percent indicated they have a combination of both structures.

“Companies are adopting centralized and hybrid solutions as a way of balancing support for business activities and long-term corporate ambitions. However, findings reveal that those with a centralized approach believe they are more focused,” said Cheryl Perkins, president and founder of Innovationedge.

The survey indicated that companies with centralized innovation structures are also more likely to have standards for success measurement, as 67 percent of respondents with centralized structures said they have a system in place to measure innovation efforts. 57 percent of decentralized systems had no measurement structure at all.

“While many organizations are developing enhanced innovation capabilities, structure and measurement continue to remain areas for improvement, as most companies are still experimenting,” said Perkins. “From our experience with organizations’ innovation structures, companies should develop strategic direction from the center of the organization and work very closely with their business unit innovation teams to evolve the culture, manage processes, measure progress and deliver game-changing innovations.”

About Innovationedge Research
The Innovation Industry Pulse Poll is a quarterly survey sent by Innovationedge to nearly 200 executive-level innovation professionals at leading global organizations. The survey aims to capture the latest developments on innovation leadership, measurement and strategy.

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Media Contact: Abby Gutowski
Innovationedge, LLC
920-731-2771 ext. 224
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