This is what innovation looks like in the DACH region

Innovation in the DACH region study

To shed light on current innovation practices, challenges, and results, Pioneers A first big Business Innovation Study carried out in the DACH region (Germany, Austria, Switzerland). The study provides deep insights into how companies deal with innovation and highlights the reasons for success and failure. The study data was collected from senior employees (mainly innovation or digitization managers) in 104 companies with an average of over 1,000 employees.

Reasons for innovation in the DACH region

Technological developments are on the rise, and new Megatrends Such as automation, data analysis, AI and IoT are changing the way entire industries work. At the same time, a large number of fast-growing companies are joining forces with new, often digital business models enter the market or even create new markets. In view of this challenging environment, many companies have Innovation efforts reinforced to keep pace with the pace of change. Looking at the overall results of the study, there were mainly three reasonsWhy DACH companies invest in innovation activities: staying ahead of the competition, increasing the company's turnover and responding to customer needs. But that's nothing new. It is much more important to know exactly how innovation takes place. Namely through Intrapreneurship, multi-corporate collaboration and startup-corporate collaboration.

intrapreneurship

Originally described as entrepreneurial behavior by employees, it is now seen as a proven tool for promoting innovation within the entire organization. More and more companies give employees Time, space, and resourcesto during their working hours or even during predefined and structured Innovation programs to develop your own (business) ideas The latter are in high demand, and in the last year, the majority of companies have started to create one or more Intrapreneurship programs with the aim of supporting employees in the internal development of new solutions. The study showed that the majority of DACH companies are already using the innovative power of their employees through intrapreneurship. 82% of the participants surveyed have engaged in practice, while 18% have not yet offered employees the opportunity to work on their own ideas. DACH companies are primarily engaged in intrapreneurship in order to to develop new products and services (82%), a strong Innovation culture to promote (56%) and internal processes to improve (47%). The majority of companies offer employees budgets (63%), mentors (51%), and time (51%) to work on their own ideas. As far as organizational formats are concerned, internal Idea competitions (60%) and training programs for innovation or entrepreneurship (41%), the most frequently used innovation formats in practice. Intrapreneurship activities lead to product innovations (57%), improved innovation cultures (49%) and motivated employees (43%). The general results show that when it comes to intrapreneurship, there is still a lack of effective programs and formats to fully exploit the innovative power of employees.

Startup-corporate collaboration

Young, innovative companies practice more than ever printing based on the market position of established companies. Clearly, these companies can no longer be ignored and as a result, companies are now looking for Collaboration in the form of open innovation. According to the study, 88% of DACH companies are already working with start-ups. The reasons for DACH companies to promote cooperation between start-up companies are clear. 86% strive for product innovation through inspiration thru fresh ideas the start-ups or the joint development of specific products using latest technological solutions, which are all aimed at competitive advantages to create. Other destinations include Process innovation (41%) and entry into new markets (39%). Due to cultural differences and new agile working approaches, most companies (72%) seek external support when they enter into start-up cooperation. In fact, 38% employ external consultants, while around 20% with universities or work together with external mentors. Looking at the level of satisfaction with project results, it becomes clear that companies that do not have external support are less satisfied with the results than those that have them.

Multi-corporate collaboration

When companies with different stakeholders, whether suppliers, customers or cross-sector colleagues, work together to achieve their innovation goals, we speak of multi-corporate innovation. 78% of the DACH company participants surveyed have already tried out multi-corporate collaborations in the past, the majority of which come from either the automotive & mobility industry (14%), the chemical & healthcare industry (14%), the financial & administration industry (14%) or the manufacturing industry (22%) originates. During successful collaboration between several companies, innovations can more profitable Will who Time to market using the partners' existing infrastructure, reduce costs through joint research and development reduce and increase revenue through combined marketing and sales measures create. As a result, cross-company innovation, such as when working with start-ups, is used to develop new products (65%). The Building a network However, this is the second decisive factor for this innovation model. Even though there are many challenges associated with cross-company innovation, the study shows that more companies (81%) want to innovate multi-corporate collaboration in the next two years.

Innovation outlook

Looking at the market from today's perspective, innovations will undoubtedly continue to be important for companies in the DACH region. However, forms of innovation continue to develop, and the focus of innovation activities is shifting away from the mere search for the most creative ideas and the best partners towards innovation activities that help determine whether an idea is worth it to be followed up and how to effectively implement valuable ideas can be. Innovation must take place not only in the form of state-of-the-art products, but above all in terms of providing and capturing benefits through new channels and business models.