Why businesses need to place innovation higher on the agenda in 2017

| December 20, 2016

As we move into the New Year, the Australian business community will continue to face significant challenges. In an environment of digital disruption and increased competition, businesses need to prioritise innovation and collaboration as key drivers of business growth.

To map the state of play in Australia’s innovation ecosystem, the Australia-Israel Chamber of Commerce partnered with SKY NEWS BUSINESS in 2016 to launch the Innovation Index: a series of on-the-pulse quarterly reports that measure the growth of innovation in Australian workplaces of all sizes.

Findings from the December 2016 Index indicates that companies are prioritising innovation in their business plans like never before. In this quarter alone, over half of the survey respondents indicated that collaboration and innovation are fundamental ingredients to business growth.

This quarter’s Index found that investment in technology and new products, services and markets are significant areas of growth for Australian businesses. However, some companies are struggling to achieve success in these areas.

Drawing from the Index findings, here are three key focus areas for Australian businesses to drive innovation in 2017:

➢ With funding becoming more accessible, businesses can capitalise on opportunities for collaboration. This quarter’s Index found that either internal resources (43%) or a mix of internal and external resources (36%) are still the largest areas of growth funding for businesses. There appears to be a stronger preference for external funding options, such as grants and angel investments, which are becoming more accessible. With these funding opportunities comes the need for SMEs to consider investing in new collaborative partnerships to help drive innovation.

➢ To drive innovation, businesses should explore partnerships as a way to successfully develop and launch new products and services. More than half of this Index’s respondents identified market pressure as their biggest challenge for the year ahead. In an environment of uncertainty and disruption, businesses fear the financial risks involved in the take-up of new products and services. To combat these concerns, companies are looking to accelerators and the start-up community for partnership opportunities, with 61% of respondents signifying strong interest and investment in start-ups. Organisations investigating collaborative pathways are broadening scope for greater business success and a competitive edge.

➢ Employee training and development will encourage business success. The last quarter has seen employee training and development rated more highly as an opportunity for business growth – significantly up from 15% to 30%. Organisations are starting to feel encouraged to equip employees with the skills to innovate internally and boost productivity. By prioritising this businesses area, organisations can look to enhance innovation output and employee retention – key areas for enhanced performance and business growth.

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