Leading businesses continue to struggle with innovation, states Capgemini Consulting and Altimeter global report

MUMBAI: The leading businesses continue to struggle with innovation, with the traditional R&D model viewed as 'broken', states a global report by Altimeter Group’s Brian Solis and Capgemini Consulting, the global strategy and transformation consulting arm of the Capgemini Group.

According to the release, the report states a shifting approach to digital innovation, with R&D teams at large, traditional corporations viewed as ill-equipped to rise to the challenge of digital Darwinism.

Firms however are looking at 'innovation centres' in major global technology hubs such as Silicon Valley to leverage an ecosystem of startups, venture capitalists, accelerators, vendors, and academic institutions.

According to the report, 38% of the leading 200 companies have set up innovation centers in a global tech hub. And, US and Europe have the largest share with 29% of total innovation centers respectively followed by Asia at 25% .

"For the world’s largest organizations, innovation has never been more important – or more difficult. We find ourselves in a world where disruption is imminent and can come from anywhere and these digital-savvy competitors are threatening the very fabric of many established industries. Without constant innovation, once dominant players are finding their tried and trusted paths to innovation are now dead ends," stated Brian Solis, principal analyst at Altimeter Group.

The study found out that these innovation centers help in implementation of new ideas, attract talent, drive employee engagement, and establish partnerships with startups.

In the release, Jerome Buvat, Global head of Research at Capgemini Consulting, said, "Many organizations are solving the issue of embracing innovation by partnering with or acquiring technology startups, but too often this is a sole focus. A more equal balance between external and internal thinking is required. Innovation centers are proving an effective means to cultivate the agile startup mentality needed to remain at the forefront of the market, but it is clear that establishing an effective center has many challenges."