A PwC global innovation study has found that the most innovative 20 per cent of Technology, Media and Telecom (TMT) companies surveyed expect a growth rate of nearly 90 per cent over the next five years, more than twice the TMT average (37.5 per cent) and over four times higher than the least innovative TMT companies (22.2 per cent). The same top 20 per cent innovative TMT companies collectively benefited from an additional $45 billion in revenue over the last three years, compared with the least innovative companies. This is the equivalent of more than $1 billion per company, or a 14 per cent revenue uplift.
Data from the report indicates the top 20 per cent of performers account for the revenue increase by establishing and executing a coherent innovation strategy and planning for a greater proportion of breakthrough and radical innovations. The report, the first of three papers exploring innovation within TMT, highlights how innovation is accelerating growth for leading TMT companies.
Dan DiFilippo, Global TMT Leader, PwC, said: “Developing an innovative product or service is not enough to secure and maintain a leadership position in today’s market. Companies must have a consistent innovation strategy, which separates them from the competition as our survey results demonstrate. Companies that adopt a coherent innovation strategy, with a greater proportion of radical innovation and a more diverse innovation portfolio, enjoy higher revenue growth and a strengthened competitive position.”