DISCOVERWHEREVALUES HIDINGHow to unlock the value of your innovation investmentsCONTENTSINNOVATION UNLOCKS TRAPPED VALUE IN THE DIGITAL AGERELEASE VALUE USING THE DISTINCT INNOVATION APPROACH THE SEVEN CHARACTERISTICS OF HIGH-GROWTH COMPANIES, UNCOVERED2ABOUT THE AUTHORSOur team is at the forefront of helping organizations to steer a path through disruption, unlocking trapped value and becoming leaders in the new. OMAR ABBOSH Group Chief Executive, Communications, Media and Technology Group.PAUL NUNES Global Managing Director of Thought Leadership at Accenture Research.DR. VEDRANA SAVIC Managing Director of Thought Leadership at Accenture Research.MICHAEL MOORESenior Principal, Thought Leadership at Accenture Research.He serves on Accentures Global Management Committee and was previously Accentures Chief Strategy Officer. He has extensive experience in advising C-level and board level members across a wide range of industries.He focuses on technologydriven innovation in business and marketing strategy. His research has helped to shape the companys strategic vision as well as its critical imperatives for change, spanning three decades.She has extensive experience in strategy and management consulting, and in financial services. She is a thought leader focused on innovation strategy, value creation in the digital age, and corporate reinvention.He has extensive experience in strategy consulting, developing growth strategies for energy companies. His research looks at how companies can understand, harness and scale disruptive innovation in support of inclusive growth.3A QUICK LOOKTechnology-enabled innovations are creating enormous potential in every industry. To convert that potential into value, companies need to put innovation to work, at the right pace and in the right place.But many are unable to do so. In fact, the return on companies innovation spending has declined by 27 % over the past five years.1The good news is there is a group of companies (14% of C-level executives we surveyed) that are turning innovation investments into value with success.So, what are these high-growth companies doing that others arent? High-growth companies adopt a distinct approach to innovation that helps them turn innovation investments into value. The approach advocated by their C-suite is:CHANGE-ORIENTEDHave the courage to apply innovation with greater intensity to reinvent existing ways of working, and thus achieve deep organizational change. OUTCOME-LEDFoster innovation efforts across the business, and have the discipline to tie them rigorously to financial performance. DISRUPTION-MINDEDCommit to invest more aggressively, over time, in truly disruptive innovation initiatives that have the potential to create entirely new markets.Sources: (1) Accenture Research analysis based on Bloomberg, with method adapted from Bloom, N., Jones, C.I., Van Reenen, J., and Webb, M. (2018): “Are Ideas Getting Harder to Find?”, version 2, National Bureau of Economic Research.1234INNOVATION UNLOCKS TRAPPED VALUE IN THE DIGITAL AGE5FINDING NEW OPPORTUNITIESIn exponential technology changeAdvanced technologies performance relative to cost is improving exponentially. Unsurprisingly, this trend presents an abundance of value opportunities. Figure 1:The declining cost of advanced technologies1Logarithmic cost index, 2002 = 100Sources: (1) Accenture Research estimates based on data from: IHS Markit; NY Times; WEF.Cloud storage costs ($US/GB per month)Electric vehicle battery pack ($US/kWh)Global PV module prices ($US/W)Commercial/military drone minimum prices ($US/unit)Global bandwidth costs (US$/1000 MBps)3d printing machines ($US/machine)Genome sequencing cost ($US/genome)1001012002 2007 2012 20170.56INCREASING INVESTMENTSReveal the chase for new opportunitiesOverall, spending on innovation is up. Way up. The top 1,000 companies globally (by market capitalization) grew R job creation; water and food safety).9RELEASE VALUEUSING THE DISTINCT INNOVATION APPROACHHOW THE 14% OF HIGH-GROWTH COMPANIES PUT INNOVATION TO WORK10