Report: Innovation hype is triggering market skepticism

New report into Australia's top 100 ASX-listed companies shows shareholders are increasingly skeptical about the trapping of innovation

Innovation might the buzzword echoing across corporate hallways today, but a new piece of research on Australia’s top 100 companies shows deep scepticism from shareholders around the benefits of innovation activities on the bottom line.

The new study, which was commissioned by Terem Technologies of Australia’s top 100 ASX-listed companies found 41 per cent have a publicly announced innovation lab, 23 per cent have a venture fund dedicated to innovation, and 69 per cent account on their financial statements for innovation, R&D or related technology.

But what the report also highlighted was that innovation activities such as these are not being rewarded by the share market without the tangible business results to support them.In fact, the report claimed innovation hype is now being viewed with increasing scepticism by the market.

In addition, the report found companies that claimed a large innovation footprint in their communications to shareholders did not necessarily out-perform companies that did not have the same commitment to innovation.

The top five “innovators by press release” identified by Terem Technologies were Rio Tinto, Commonwealth Bank, Amcor, Bendigo and Adelaide Bank and Aristocrat Leisure.

However, companies producing tangible innovation results are being rewarded even when they do not trumpet innovation.

For Terem Technologies CEO, Scott Middleton, the results suggest companies that want to foster innovation must not only demonstrate actual results from these activities, but also put the emphasis on disruption over iterative improvement.

“Companies can’t talk their way to growth,” he said. “For innovation to have an impact on a company’s performance, it must move the company into a significant, growing market. This takes time and commitment. Innovation around process is important, but these days, it’s just table stakes.”

The report was based on analysing the ASX100 over the short, medium and medium to long term (up to five years), looking at public innovation infrastructure, venture capital funds, collaboration with universities, patents field and board composition. Terem Technologies said it also looked at an organisation’s shareholder-focused rhetoric around innovation by analysing financial reports and press releases.

The report also featured a breakdown of the innovation claims of Australia’s top four banks. According to these findings, all four – CommBank, Westpac, ANZ and National Australia Bank – have innovation labs as well as research collaboration programs underway, and both NAB and Westpac had venture funds.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Undoubtedly, Robotic Process Automation enables marketing teams to accomplish repetitive tasks with fewer resources at a great accuracy.

Raj

What marketers need to know about robotic process automation

Read more

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

Blog Posts

Attention marketers, it’s the small things that make a big difference

Marketers spend their careers searching for the formula that can improve the bottom line for their brands. Most new marketers also come into a role and feel like they need to put their own stamp on things.

Peter Pynta

CEO APAC, Neuro-Insight

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in