Innovation Becomes Crucial Factor in the Development of Companies

Digitization, the Internet of Things and artificial intelligence could have an impact on the corporate profits decline by one-fifth.

Ljubljana — The most innovative countries are Switzerland, Sweden, UK, USA and Finland. This is evidenced by the recently published 9th edition of the Global Innovation Index (GII). Slovenia occupies the 32nd place and, thus, on a global scale, it is one of the most innovative countries. However, according to the vice president of A.T. Kearney Marco Dercha, Slovenia can still improve its position in the future.

“In those areas that affect the Global Innovation Index 2016, Slovenia has a good political, legislative and business climate (the 23nd place), successfully develops human capital and invests in research and development (the 24th place). At the same time, the worst position of Slovenia refers to the indicators that assess the development of the market (the 84th place), the possibility of lending, investment and trade, competition and market conditions. In the development and marketing of innovations, communication and partnerships of large and small companies and start-ups are one of the key factors that can enhance the reputation of Slovenia among the leading innovative countries in the world,” Marco Dercha says.

Additional research, jointly prepared by the A.T. Kearney and the IMP³rove Akademija companies in the framework of cooperation in preparing the GII, shows that for companies, innovations become a momentous factor in the context of maintaining and strengthening market position. Improper management of innovation has certain risks.

Six out of ten surveyed executives believe that the digitization, the Internet of Things, artificial intelligence and other changes resulting from innovation may affect the reduction in company profits by 20%, if companies do not change their approach to the organization of work.

A.T. Kearney in its study notes that with an increasing number of global players, innovation is becoming more complex. To optimize the functioning of the global innovation ecosystem, the coordination of different cultures, traditions and goals is required.