Industries are dealing with exponential changes to the business environment that require greater discipline and agility in the innovation portfolio. More than ever, companies must have a robust innovation capability to develop solutions that meet changing customer and market demands, solve emerging business and operational problems, create and maintain future relevance, and drive growth in the new reality.
Although the need to manage innovation effectively is constant, COVID-19 further highlighted the need for the right innovation mindset and approach. According to survey research by KPMG LLP and Innovation Leader (A new vision for corporate innovation, October 2020), innovation budgets took a hit in 2020. The crisis forced many hard-hit companies to focus on survival, which meant shifting resources to short-term operational needs and narrowing innovation objectives.
Yet the pandemic also illuminated the link between innovation preparedness and business resilience. Enterprises with leading innovation capabilities and deep connections to their markets were more successful at weathering the storm and building a strong foundation for the future.