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

Latest Videos

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟

Sylvie

How this alcohol-free spirits brand rode the health and wellness wave

Read more

okay this a good newsmaybe i gonna try it

kenzopoker1

CMO's top 8 martech stories for the week - 9 July 2020

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

One failing brand tying up with another failing brand!

Realist

Binge and The Iconic launch Inactivewear clothing line

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

The personal digital approach that's helping Vision RT ride out the crisis

Read more

Blog Posts

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Bottoms up: Lockdown lessons for an inverted marketing world

The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading

Andy Gaunt

General manager, Fever-Tree Australia and New Zealand

Sign in