10.03.16
According to top managers in German industrial companies, the biggest challenge the industry will face in the future is coping with the pressure of having to differentiate one’s company from the competition by means of products and solutions. Eighty-two percent of decision-makers consider innovative strength a key component for a company’s success. Innovativeness has grown, as the Industry Innovation Index 2016 shows. For the study, ALTANA commissioned the Forsa institute for the third year in a row to survey 250 top decision-makers and 250 entry-level employees in German industrial companies.
The Industry Innovation Index, a specially developed indicator for recording the innovative ability of German companies, reached a level of 143.5 points in 2016, a four-point increase compared to 2015. Managers, in particular, assess their companies to be more innovative vis-à-vis the previous year. Almost every second manager – 48% – sees his or her company as being “very innovative”; in 2015 it was 43%. The benchmark group of entry-level employees has also given their employers a better evaluation: 44% currently perceive their companies to be very innovative (2015: 42%).
The increased innovative ability is largely due to the improved innovation culture in the companies. In particular, more freedom was created for innovations. Thus the share of managers who see individual employees as having creative leeway rose by 13 percentage points. This development is in line with the trend toward collaborative rather than hierarchical management styles within companies.
Companies often lack the entrepreneurial courage for innovations. Both managers and entry-level employees see potential for improvement here. Only 9% of the managers say that a willingness to take risks is implemented in their companies – a 5% decrease compared to the previous year. Seventeen percent of the entry-level employees see a somewhat higher willingness to take risks; in 2015 the share was 19%.
“To enable innovations to be made, it is decisive to continually question established procedures and in cases of doubt to get off the beaten track. To this end, it is essential that the corporate culture grants sufficient scope of action and admits mistakes,” says ALTANA’s CEO Martin Babilas.
The Industry Innovation Index, a specially developed indicator for recording the innovative ability of German companies, reached a level of 143.5 points in 2016, a four-point increase compared to 2015. Managers, in particular, assess their companies to be more innovative vis-à-vis the previous year. Almost every second manager – 48% – sees his or her company as being “very innovative”; in 2015 it was 43%. The benchmark group of entry-level employees has also given their employers a better evaluation: 44% currently perceive their companies to be very innovative (2015: 42%).
The increased innovative ability is largely due to the improved innovation culture in the companies. In particular, more freedom was created for innovations. Thus the share of managers who see individual employees as having creative leeway rose by 13 percentage points. This development is in line with the trend toward collaborative rather than hierarchical management styles within companies.
Companies often lack the entrepreneurial courage for innovations. Both managers and entry-level employees see potential for improvement here. Only 9% of the managers say that a willingness to take risks is implemented in their companies – a 5% decrease compared to the previous year. Seventeen percent of the entry-level employees see a somewhat higher willingness to take risks; in 2015 the share was 19%.
“To enable innovations to be made, it is decisive to continually question established procedures and in cases of doubt to get off the beaten track. To this end, it is essential that the corporate culture grants sufficient scope of action and admits mistakes,” says ALTANA’s CEO Martin Babilas.