Coordinating operations to enhance innovation in the global corporation

Abstract

Purpose

Over the last two years, the authors have studied the growth strategies and the supporting operations of nearly 650 companies around the world. While most have the expectation that innovation will drive corporate fortunes, the research makes it clear that building or restructuring business operations to profitably bring new products and services to market is a top priority only for best performing companies but near the bottom of most companies' priorities.

Design/methodology/approach

Explains how top‐performing global companies are investing in the product development capabilities, the supply chain process infrastructure, and the sophisticated information systems needed to support and synchronize innovation across the value chain.

Findings

Research on a subset of the survey base (the 300+ larger companies and business units with revenues ranging from US$200 million to US$10 billion and higher) shows that those that can synchronize complex global value chains – the complexity masters – are up to 73 percent more profitable than the others.

Research limitations/implications

Interviews with senior managers at leading firms and case studies on the complexity masters would be of high value.

Practical implications

The authors suggest three steps: create innovation – build an idea‐generation machine; exploit innovation where and when it matters; and invest in innovation capabilities for creating and sustaining a profit cycle. The four ingredients that make top‐performing companies stand out are visibility, flexibility, collaboration, and technology.

Originality/value

Lists the best practices – the strategies and tactics – of the most profitable innovators, the elite “complexity masters.”

Citation

Koudal, P. and Coleman, G.C. (2005), "Coordinating operations to enhance innovation in the global corporation", Strategy & Leadership, Vol. 33 No. 4, pp. 20-32. https://doi.org/10.1108/10878570510608013