2018 Chase Innovation Research Report

2018 Innovation Study
Chase Consulting Group Pty Ltd

Melbourne, Victoria, AUSTRALIA
www.chasegroup.com.au
ABN 3308899035
ACN 099528435
Research Disclaimer:
This report is provided for information purposes only. It is not a complete analysis of every material innovation
factor impacting organisations, industries and sectors.
Neither this report nor any opinion expressed herein should be construed as providing professional
management consulting advice. Chase Consulting Group accepts no liability whatsoever for any direct or
consequential loss arising from the use of this report or its contents. This report may not be reproduced,
distributed or published by any recipient for any purpose.
Copyright © Chase Consulting Group Pty Ltd 2018
2018 INNOVATION STUDY │ Research Summary Page 2 of 27

TABLE OF CONTENTS
KEY FINDINGS ..................................................................................................................................... 4
ABOUT THE RESEARCH ..................................................................................................................... 6
THE INNOVATION PERSPECTIVE .................................................................................................... 9
THE INNOVATORS ............................................................................................................................14
INNOVATION CAPABILITY ..............................................................................................................18
INNOVATION TECHNIQUES ...........................................................................................................20
DRIVING INNOVATION ....................................................................................................................24
FINAL THOU GHTS .............................................................................................................................25
APPENDIX .............................................................................................................................................26
HOW CAN CHASE HELP YOU? .......................................................................................................27

KEY FINDINGS
120 organisations across 17 Industries and Sectors answered our innovation survey instrument in
January and February 2018. Our goal was to find out what highly innovative organisations are doing
differently from their peers.
The key findings from our research are:
 Organisations are anticipating significant disruptive shifts in their industry and sector over
the next 5 to 10 years. Automation and artificial intelligence, empowered customers, and
vertical integration and collapsing supply chains are anticipated to be major disruptive forces
over the next 5 to 10 years.
 Disruptive shifts are creating opportunities for innovation. Organisations need to plan and
respond to change now, build organisational capacity, and grab the opportunity for
innovation.
 High-Innovation organisations1 are investing nearly five times more than their peers in their
innovation budgets. One in three High-Innovation organisations is directing a massive 50% of
revenue to the innovation budget. At the other end of the innovation spectrum, the top 30%
of Low-Innovation organisations are investing between 5% to 10% on innovation.
 High-Innovation organisations have realised 65% more benefits from their innovation
initiatives in comparison to the Low-Innovation organisations.
 High-Innovation organisations are using twice as many innovation techniques than their
peers. They are using a mix of traditional and new techniques to rapidly progress along their
innovation journey and get closer to customers.
 The ten most impactful innovation techniques for High-Innovation organisations are:
o Opportunity Identification and Screening
o Rapid Testing and Piloting
o Opportunity Evaluation (business case)
o Design Thinking
o In-house Innovation Management System
o Prototyping/Minimum Viable Product
o Market Validation
o Business Planning
o IP Licensing
o Customer Journey Mapping
1
High-Innovation organisations are the innovators and disruptors in their industry or sector, see p14.

 High-Innovation organisations have on average 49% greater innovation capability compared
to their Low-Innovation peers. These organisations have a significant advantage when it
comes to their people, innovation tools and innovation metrics.
 The Innovation Capability Index developed from our research provides organisations with
confirmation of capability gaps compared to leading innovators. It identifies the strongest
and weakest innovation areas, and the improvement opportunities to develop innovation
capability and how to accelerate along the innovation journey.
Organisations need to drive innovation as the waves of disruption sweep through their industry
and sector. To grab these opportunities, organisations need to optimise their innovation
capabilities in the important areas of strategy, people, process and culture.
The specific innovation approach, whether it is incremental innovation or transformative

innovation; and the mix of innovation techniques needs to be carefully selected on where the
industry or sector is playing at, where the competition is, and where the timing of the
opportunities lies.
Our 2018 innovation research study provides insights into the innovation strategies and
techniques of highly innovative organisations. These insights apply to big organisations, small
and medium enterprises and start-ups.

ABOUT THE RESEARCH
This study forms part of Chase’s commitment to conducting, sharing insights and best practices from
our research with Australian and international organisations. This research report is the second
edition of our conducted Innovation Study, updated with latest data and insights.
METHODOLOGY
120 organisations participated in our innovation survey instrument in January and February
2018.
The sample was segmented to compare innovators who are industry/sector innovators and
disruptors, with those less innovative organisations.
THE SAMPLE
We sorted the organisations into four size categories shown in Table 1.
Table 1: Organisation Size Category Description
Large Organisations Employing more than 200 people
Mid-Sized Organisations Employing 20 to 199 people
Small Organisations Employing 4 to 19 people
Micro Organisations Employing less than 3 people

The proportion of respondents by organisation size is shown in Figure 1.
Figure 1: Proportion of Respondents by Organisation Size
The organisations surveyed were from 17 Industries and Sectors. The composition of respondents by
Industries and Sectors is highlighted in Figure 2.
Sample Composition by Organisation Industry Sector
Professional, Scientific and Technical Services 22%

Health Care and Social Assistance 15%
Education and Training 9%
Manufacturing 9%
Other Services 7%
Information Media and Telecommunications 6%
Government, Public Administration and Safety 5%
Financial and Insurance Services 5%
Transport, Postal and Warehousing 4%
Wholesale Trade 3%
Construction 3%
Agriculture, Forestry and Fishing 3%
Retail Trade 2%
Electricity, Gas, Water and Waste Services 2%
Arts and Recreation Services 2%
Administrative and Support Services 2%
Accommodation and Food Services 2%
0% 5% 10% 15% 20% 25%
Percent of Industry Sectors Identified
Figure 2: Survey Composition by Organisation Industry Sector

The survey respondents by organisation position are highlighted in Figure 3. Over 51% of
respondents are business owners, CEOs and C-Suite executives.
Survey Respondents by Organisation Position
Owner / CEO 38%

Executive / C Suite 13%
Sales / Marketing / Communications 7%
Finance / Accounting 3%
Operations / Engineering / Manufacturing 12%
Innovation 3%
IT / Digital Information 7%
Board of Directors 2%
Other 16%
0% 10% 20% 30% 40%
Percent of Organisational Position
Figure 3: Survey Respondents by Organisation Position

THE INNOVATION PERSPECTIVE

This research study defines "disruption" as something which displaces an existing market, industry,
sector or technology by producing something new, more efficient and more worthwhile. It is at once
both destructive and creative. Our definition is based on the concept of disruptive innovation by
Clayton Christensen.2
DISRUPTIVE FORCES IMPACTING ORGANISATION OVER THE PAST 12 MONTHS

We asked our respondents to rate the impact of a number of disruptive forces that their
organisation has experienced in the past 12 months. These disruptive forces are highlighted in Figure
4.
Impact of Disruptive Forces over Past 12 Months
Direct customer relationships 6.6

Technology integration 6.3
Empowered customers 6.2
Pace of innovation 6.2
Economic conditions 6.2
Social media 6.1
Technology / Big data 5.4
Demographic / social change 5.3
Local competition 5.3
Automation/Artificial Intelligence 4.5
Existing international competition 4.4
Vertical integration / collapsing supply chains 4.2
Global workforce/outsourcing 4.2
New market entrants from overseas 3.9
3 4 5 6 7
Impact Scale (0 to 10)
Figure 4: Disruptive Forces Impacting Organisation over the past 12 Months
Overall, the forces of direct customer relationships, technology integration and empowered
customers were rated as the highest impacts. Interestingly these top 5 disruptive forces are similar
to our 2016 survey findings.
2
Bower, J. L., and C. M. Christensen. "Disruptive Technologies: Catching the Wave." Harvard Business Review 73, no. 1
(January–February 1995): 43–53.

INDUSTRY/SECTOR SHIFTS AND THE MAJOR DISRUPTION FORCES ANTICIPATED
Industry/sector shifts are defined as deep, structural changes to an industry or sector, or how an
industry or sector operates. Often, these take place over 5 to 10 plus years before they fully
materialise.
We asked our survey respondents to identify the major disruption forces that they anticipate will
impact their organisation in the future. These disruption forces are summarised in Table 2.
Overall, the forces of automation and artificial intelligence, empowered customers, and vertical
integration / collapsing supply chains are anticipated to be the major industry/sector shifts over the
next 5 to 10 years.
Table 2: Major Disruption Forces Anticipated
Major Disruption Forces Anticipated
Industry/Sector Shifts Disruption forces
Artificial intelligence, augmented reality
Automation / Artificial Intelligence Automation of professional white-collar tasks, availability of

online advice, customer service via chatbots
Automotive automation, robotic process automation,
machine learning technologies
Big data, cloud computing, digitisation - converting
information into digital information
Technology / Big Data Blockchain, reduction in cash payments, increasing digital
payments
Technology integration and technology developments, 3D
printing
An ageing population, aged care reform, implementation of

Demographic / Social Change
NDIS, higher density living in Australia
Flexible working
Economic Conditions Economic cycles, slowing economy

Economic pressures, shift from Capex to Opex spending
Consumer-directed care - consumers choose service, Industry

shift towards patient-centric devices
Empowered Customers Customer empowerment

More services available on the internet, more people can DYI,
user expectations of access to services via web technologies,
online transacting versus person to person

Table 3: Major Disruption Forces Anticipated (cont.)
Major Disruption Forces Anticipated (cont.)
Industry/Sector Shifts Disruption forces
Energy costs, increasing power prices due to phase out of coal

Energy
Renewable energy
ASIC and Government regulations, legislation changes,

deregulation, regulators facing up to their mistakes from the
past
Change of Government, political change
Government / Regulations
Government funding cuts, financial tightening (State,
Commonwealth Govts)
State Government position change towards self-
determination
Competing interests for customers

International and global competition, Google
International Competition
Low-quality Asian products entering the market
Overseas competitors entering the Australian market
Increasing competition within Australia, industry competency

Local Competition Competitor mergers and industry mergers
Industrial / unions
Pace of Innovation Innovations, the pace of change

New markets
Skilled Workforce Skill shortage, staff retention
Changes in the traditional supply chain; supplying directly to

customers, online offerings, new service delivery methods
Easier market entry as technologies becomes more common
Vertical Integration / Collapsing Supply New media platforms, an extension of social giants into
Chains vertical advertising markets (classifieds)
Increasing direct interaction between buyers and sellers
supported by technology, e.g. Airbnb, Uber that bypass
existing regulatory structures
The change from outsourcing to insourcing

OVERALL IMPACT OF THE DISRUPTIVE SHIFTS ON INDUSTRIES AND SECTORS
We asked our respondents to rate the overall impact of the disruptive shifts in their industry/sector
over the next 5 to 10 years. The overall impact was rated at a 51% of industry/sector change, as
highlighted in Figure 5.
Organisations are anticipating significant industry/sector shifts over the next 5 to 10 years.
Overall Impact of Disruptive Shifts on Industries and Sectors
0% 20% 40% 60%

% change in the Industry/Sector
Figure 5: Overall Impact of Disruptive Industry/Sector Shifts
With disruption still to play out in a significant way over the next 5 to 10 years, it is clear that no
industry or sector will evade the effects of disruption in a rapidly changing world. Organisations will
not be able to stand still. The strategic implication is that innovation is not an option. The question is
how do organisations respond, develop their innovation capability and move forward.

MAJOR OBJECTIVES DRIVING INNOVATION STRATEGIES
Respondents were asked to identify the strategies they believe they will need to employ to address
future threats to their organisation or industry/sector.
Major Objectives driving Innovation Strategies

- excluding revenue and profit motives
Improving the customer experience 56%
Building competitive advantage in the existing business 54%
Developing new products and services 52%
Recruitment of staff with new skill sets 47%
Creating a new business model 41%
Reducing costs to improve operating margins 38%
Reaching new customer segments 38%
Creating new channels to market 36%
Protecting existing business and keeping pace with… 33%
Adoption of new pricing models 32%
New sales and marketing such as social and mobile… 31%
Scaling up our organisation 29%
Increasing workforce productivity 29%
Sustainability 24%
Social outcomes/impacts 18%
Overseas expansion 18%
0% 10% 20% 30% 40% 50% 60%

Percent of Organisations
Figure 6: Major Objectives driving Innovation Strategies
Two of the top three innovation strategies are responding to customers changing demands;
improving the customer experience and developing new products and services.
The strategies of building competitive advantage in the existing business, scaling up the organisation
and the recruitment of staff with new skill sets were ranked highly by the innovative organisations in
the survey.

THE INNOVATORS
There is a segment of organisations that have some very clear differences in their strategy and
capabilities and the benefits they have realised when compared to their peers; these are the
innovators.
We asked our respondents to select how innovative their organisation is, as per the organisation
type categories defined in Table 4.
Figure 7: Organisations by Innovation Category

To maximise the sensitivity of our analysis we grouped:
 innovators as High-Innovation organisations;
 early adopters and advanced incumbents as Medium-Innovation organisations; and
 mainstream organisations and disrupted organisations as Low-Innovation organisations.
These definitions have been adopted throughout the survey.
Table 4: Organisation Type Definitions
Innovation Organisation Definition

Category Type
We are the industry/sector disruptor. We have created a

High-Innovation
Innovators disruptive business model and are generating significant
organisations
growth.
We are the early adopter of innovations in our

Early Adopters industry/sector. We have embraced new models early
and have generated significant growth.
Medium-innovation
organisations
We are scanning the environment to anticipate market
Advanced
changes and use our capabilities to evolve and expand
Incumbents
our business models and achieve growth.
Mainstream We follow the industry/sector leaders in responding to

Organisations disruptive threats.
Low-Innovation
organisations
We have been significantly impacted by the disruption in
Disrupted
our industry/sector. We have tended to be less aware of
Organisations
disruptive threats and have been slower to respond.

INNOVATION BUDGETS
Respondents were asked to identify the proportion of annual ﬁrm revenue devoted to innovation
budgets. High-Innovation organisations are investing more in innovation — in some cases,
dramatically more.
Percentage of Annual Revenue devoted to the Innovation Budget
50
42
40
Innovation Budget %
30
20
15
12
10 6
2
0
Innovators Early Adopters Advanced Mainstream Disrupted
Incumbents Organisations Organisations
High Innovation Medium Innovation Low Innovation

Organisations Organisations Organisations
Figure 8: Percentage of Annual Revenue devoted to the Innovation Budget
Innovators are investing nearly five times more than their peers. One in three High-Innovation
organisations are directing a massive 50% of revenue to the innovation budget. At the other end of
the innovation spectrum, the top 30% of Low-Innovation organisations are investing between 5% to
10% on innovation.

INNOVATION BENEFITS
Respondents were asked to identify the benefits they have received from their innovation initiatives.
We have categorised the benefits that organisations have realised from their innovation initiatives in
terms of:
 customer benefits (acquisition, retention and profitability);
 revenue (overall revenue, new income streams and market share);
 improved productivity and operating costs;
 scaling up; and
 overall profitability and sustainability benefits.
These benefits are illustrated in the following diagram.
Innovation Benefits
50%
47%
41%
40%
30%
30% 27%
27%
25%
20%
20%
15%
14%
10%
10%
0%
Customers Revenue (overall Productivity / Scaling up our Overall profitability /
(acquisition, retention revenue, new income operating costs organisation sustainability
and profitability) streams and market
share)
High-Innovation Organisations Low-Innovation Organisations
Figure 9: Innovation Benefits
High-Innovation organisations have realised 65% more benefits from their innovation initiatives in
comparison to the Low-Innovation organisations.
As previously stated, we are comparing High-Innovation organisations against the Low-Innovation

organisations to maximise the sensitivity of the analysis.

INNOVATION CAPABILITY
INNOVATION CAPABILITY AND READINESS
Respondents were asked a series of questions on their overall approach to Innovation. Our
innovation index analyses performance against four areas of innovation.
Strategy – a clearly defined innovation strategy which guides decisions, an explicit innovation
ambition from the Board and Top Management.
People – people are innovative, have a strong capability to innovate, and have innovation tools and
innovation metrics.
Process – deep market and customer insights, constantly uncovering and understanding today's and
tomorrow's customer needs, collaborate well with partners and leading-edge customers.
Culture – encouraged to think big, dream big and take calculated strategic risks, great at making
innovation investments, funding is easily available for new innovative projects, and have the time
and freedom to innovate.
These four areas of innovation become the Innovation Capability Index, an overall rating of
innovation capability and readiness.
Innovation Capability Index Scores
High-Innovation Low-Innovation
Organisations Organisations
Overall Innovation Capability and Readiness 81.1 54.3
Strategy 80.9 53.8
Clearly defined innovation strategy which guides our decisions. 79.1 51.4
Explicit innovation ambition from the Board and Top
Management. 82.7 56.2
People 87.0 57.7
People are innovative. 89.1 62.0
Strong capability to innovate. 87.3 63.0
People have innovation tools and innovation metrics. 84.5 48.0
Figure 10: Innovation Capability Index Score

Innovation Capability Index Scores (cont.)
High-Innovation Low-Innovation
Organisations Organisations
Overall Innovation Capability and Readiness 81.1 54.3
Process
85.8 57.0
Deep market and customer insights. 84.5 54.0
Constantly uncovering and understanding today's and 86.4 54.0

tomorrow's customer needs.
Collaborate well with partners and leading-edge customers. 86.4 63.0
Culture 73.4 50.0

Encouraged to think big, dream big and take calculated
strategic risks. 83.6 54.0
Great at making innovation investments. 78.2 50.0
Funding is easily available for new innovative projects. 60.9 47.0
Have the time and freedom to innovate.

70.9 49.0
Figure 11: Innovation Capability Index Score (cont.)
High-Innovation organisations have on average 49% greater innovation capability compared to their
Low-Innovation peers. High-Innovation organisations have a significant advantage when it comes to
their people, innovation tools and innovation metrics.
The Innovation Capability Index provides deep insights into capability gaps of organisations
compared to leading innovators. It identifies the strongest and weakest innovation areas, and what
organisations can do to develop your innovation capability and progress towards innovation
leadership.
TAKE THE INNOVATION DIAGNOSTIC TEST

ON THE CHASE WEBSITE.

INNOVATION TECHNIQUES
If innovation is related to growth, are there identifiable differences in the way High-Innovation
organisations innovate? We try to answer that question.
THE INNOVATION PROCESS JOURNEY

The Innovation journey can be described in phases; Opportunity Identification > Opportunity
Evaluation > Scaling Up > Growth.
The Innovation Process Journey

OPPORTUNITY OPPORTUNITY
SCALING UP GROWTH
IDENTIFICATION EVALUATION
Figure 12: Innovation Process Journey
In this study, we asked respondents about 25 possible innovation techniques that can be used along
the innovation process journey. A full list and description can be found in the appendix.
High-Innovation uses more innovation techniques on average compared to Low-Innovation

organisations. Across the top 10 techniques, High-Innovation organisations invested 37% more effort
towards innovation than Low-Innovation organisations and saw 40% more impact.

HOW MANY INNOVATION TECHNIQUES ARE ORGANISATIONS USING?
High-Innovation organisations are using about 5 innovation techniques on average, whereas Low-
Innovation organisations using only 2.6 innovation techniques, as highlighted in Figure 13 below.
Innovation Techniques
5.0
2.6
0 2 4 6
Number of Innovation Techniques
Figure 13: Innovation Techniques
The High-Innovation organisations are using a mix of the traditional and the newer innovation
techniques. In comparison, the Low-Innovation organisations are predominantly using the traditional
innovation techniques.
The most commonly used traditional techniques are Business Planning, Opportunity Evaluation
(business case) and Opportunity Identification and Screening.
The new techniques are helping organisations rapidly progress along the innovation journey, test
new business models and get closer to customers. The most commonly used traditional techniques
are Rapid Testing and Piloting, Prototyping/Minimum Viable Product and Design Thinking, Market
Validation and Customer Journey Mapping.

WHAT INNOVATION TECHNIQUES WORK FOR HIGH-INNOVATION ORGANISATIONS?
Respondents using a particular technique were asked to rate the perceived level of impact on a scale
from 0-10. The chart shows the average levels of impact for High- and Low-Innovation organisations.
High-Innovation organisations are experiencing benefiting from 40% greater impact from this
innovation mix than Low-Innovation organisations.
Innovation Techniques Impact
Opportunity Identification and Screening 8.2

3.8
Prototyping/Minimum Viable Product 8.1

4.7
Design Thinking 8.0

4.0
Rapid Testing and Piloting 7.3

6.0
Opportunity Evaluation (business case) 7.3

4.6
Stage-Gate Process 6.7

6.0
In-house Innovation Management System 6.6

6.0
Market Validation 6.4

0.0
Business Planning 6.3

5.3
Customer Journey Mapping 4.8

4.6
0 2 4 6 8 10
Impact
Figure 14: Innovation Techniques Impact
High-Innovation organisations are seeing twice as much impact from opportunity identification and
screening as their Low-Innovation peers.
High-Innovation organisations are also seeing significantly higher impacts from the newer innovation
techniques of Rapid Testing and Piloting, Prototyping/Minimum Viable Product, Design Thinking and
Market Validation.

HOW DO HIGH-INNOVATION ORGANISATIONS INVEST IN INNOVATION?
Respondents using a particular technique were asked to rate the perceived level of eﬀort invested
on a scale from 0-10. The chart shows the average levels of investment for High- and Low-Innovation
organisations.
Innovation investment includes both money and time. High-Innovation organisations invest 37%
more time and effort in the top 10 innovation techniques compared to the Low-Innovation
organisations.
Innovation Techniques Investment
Prototyping/Minimum Viable Product 8.3

5.3
Rapid Testing and Piloting 8.2

4.7
Opportunity Evaluation (business case) 8.1

6.8
Opportunity Identification and Screening 7.8

3.0
Market Validation 7.4

0.0
Business Planning 7.2

6.0
` 7.1
Design Thinking 5.3
In-house Innovation Management System 6.9

5.0
Stage-Gate Process 6.3

5.0
Customer Journey Mapping 4.8

6.4
0 2 4 6 8 10
Investment - finances and time
Figure 15: Innovation Techniques Investment
High-Innovation organisations are also investing more in the new innovation techniques. Three of
the top five new innovation techniques are the new innovation techniques of Prototyping/Minimum
Viable Product, Rapid Testing and Piloting and Market Validation.

DRIVING INNOVATION
DRIVING INNOVATION TO GRAB THE OPPORTUNITIES
Innovation applies to all organisations; big organisations, small and medium enterprises and start-
ups. Organisations need to drive innovation as the waves of disruption sweep through their industry
and sector. To grab these opportunities, organisations need to optimise their innovation capabilities
in the important areas of strategy, people, process and culture.
The specific innovation approach, whether it is incremental innovation or transformative innovation;

and the mix of innovation techniques needs to be carefully selected on where the industry or sector
is playing at, where the competition is, and where the timing of the opportunities lies.
Strategy – A clearly defined innovation strategy and an explicit innovation ambition from the board
and the senior leadership team are essential in setting innovation as a priority. The attitude of the
board and the senior leadership team towards innovation is key to driving innovation. A lack of
urgency to sense change to respond, and to be future-ready will allow the organisation to be
significantly impacted by the disruption.
Process – Organisations require a way of formalising ideas or getting people to participate,

otherwise, they are going to miss opportunities. The innovation process is critical to uncovering deep
market and customer insights, understanding today's and tomorrow's customer needs, and
collaborating with partners and leading-edge customers. A mature innovation process enables
organisations to quickly test, develop, accelerate and scale-up their innovations.
People – Equipping and prioritising people into innovation is critical in making innovation happen.
Developing capability and providing the right innovation tools and metrics are key success factors.
Culture – It is very important to give the organisation permission to innovate. Encouraging the
organisation to think big, dream big and take calculated strategic risks is key. If organisations do not
put money into innovation, it will never happen. Being great at making innovation investments and
having funding easily available for new innovative projects are key to moving the organisation's
forward.

FINAL THOUGHTS
It is clear that there will be an enormous period of disruption and opportunity ahead, where
innovators are combining technologies and new business models in different ways to drive
innovation and opportunities.
The impacts of disruption have a significant way to play out over the next 5 to 10 years.
Organisations will not be able to stand still. Organisations doing what they do now will not sustain
them in the future.
Innovation is not an option; the question is how do organisations respond, develop their innovation
capability and move forward.
To grab these opportunities, High-Innovation organisations are optimising their capabilities in the
important areas of strategy, people, process and culture. They have a significant advantage when it
comes to their people, innovation tools and innovation metrics.
High-Innovation organisations not only enjoy greater benefits but also were using twice as many
innovation techniques than their peers. They are using a mix of traditional and new techniques to
rapidly progress along their innovation journey and get closer to customers.
Organisations need to be ready to re-invent themselves and to change the dynamics of how they
engage with the customer. This study provides insights into building organisational capacity to
innovate and embrace the period of disruption and opportunity ahead.
HOW TO LEARN MORE

This research study is being made available to Australian and international organisations. More
detailed results and analysis are available to Chase clients and research participants.
We welcome the opportunity to extend this research. To participate in new studies and gain access
to detailed results, analysis and advice, please contact us at info@chasegroup.com.au.

APPENDIX – INNOVATION TECHNIQUE DESCRIPTION
A strategic management and an entrepreneurial tool to describe,
Business Model Canvas
design, challenge, invent and pivot the business model.
Business Model Experiments A test and learn approach to validating the business model.
The process for developing the business goals, objectives,

Business Planning
commercialising innovations and financial forecasts.
Commercialisation Funding - equity Funding to commercialise the innovation for local and international
and debt markets.
Customer Journey Mapping An approach to improving the customer’s journey and experience.
A process for creative problem solving to arrive at innovative

Design Thinking
solutions.
A hackathon is an event where people come together to solve
Hackathon
problems.
A process to construct the best solution to satisfy the unmet
Ideation
customer needs of the target customers and segments.
A structured program guiding start-ups to become valuable in the
Incubator/Accelerator Program
eyes of investors.
In-house Innovation Management
An organisation’s formal Innovation Management System.
System
A structured program providing seed funding for ideas with
Innovation Challenge
business mentoring to solve social and commercial problems.
A strategic goal-focused unit, tasked with creating anything from a
Innovation Lab
new product or service, to new technology or business model.
A partnership between an intellectual property rights owner and
IP Licensing
another to use such rights for an agreed payment.
Adaption of the Business Model Canvas focusing on problems,
Lean Canvas
solutions, key metrics and competitive advantages.
An approach to creating and managing start-ups and getting the
Lean Start-up
desired product to customers' hands faster.
A technique for testing a product concept against a potential target
Market Validation
market to validate the product, price and the economics.
Opportunity Evaluation (business A business case process to critically examine the opportunities,
case) alternatives, innovation stages and financial investment.
Opportunity Identification and
A process to identify and evaluate business opportunities.
Screening
Prototyping/Minimum Viable A minimum viable product has just enough features to satisfy early
Product customers and provides feedback for future development.
To rapidly test and pilot the innovation in a commercial
Rapid Testing and Piloting
environment.
Revenue Testing A technique for testing the price and revenue streams.
A model from idea-to-launch for managing new product innovation

Stage-Gate Process
excellence.
A process of collective thinking, reflection and planning on how and
Theory of Change
why an intervention will contribute to the desired impact.

HOW CAN CHASE HELP YOU?
Chase Consulting Group is a boutique Australian

management consulting firm. Based in Melbourne, we To find out how Chase can
work with organisations, businesses and enterprises help your organisation grab
throughout Australia to bring effective, timely and the opportunities for
proven results. innovation, please contact
us!
We improve organisations.
Chase Consulting Group
We provide a complete range of consulting services, Melbourne, Victoria
including strategy, customer research, innovation,
performance improvement, evaluation and 0412714549
professionalising the business. info@chasegroup.com.au
Chase helps clients build their innovation capabilities and

maximise the impacts from their innovation investments.
We help our clients look at the future differently from
various perspectives, helping them to innovate and
transform themselves
Ready to accelerate your innovation?

Chase offers a complimentary 30-minute discussion to
help organisations accelerate.
REQUEST A COMPLIMENTARY
INNOVATION CONSULTATION

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2018 INNOVATION STUDY │ Research Summary Page 2 of 27

KEY FINDINGS ..................................................................................................................................... 4

ABOUT THE RESEARCH ..................................................................................................................... 6

THE INNOVATION PERSPECTIVE .................................................................................................... 9

THE INNOVATORS ............................................................................................................................14

INNOVATION CAPABILITY ..............................................................................................................18

INNOVATION TECHNIQUES ...........................................................................................................20

DRIVING INNOVATION ....................................................................................................................24

FINAL THOU GHTS .............................................................................................................................25

HOW CAN CHASE HELP YOU? .......................................................................................................27

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The specific innovation approach, whether it is incremental innovation or transformative

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ABOUT THE RESEARCH

Table 1: Organisation Size Category Description

Large Organisations Employing more than 200 people

Mid-Sized Organisations Employing 20 to 199 people

Small Organisations Employing 4 to 19 people

Micro Organisations Employing less than 3 people

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Figure 1: Proportion of Respondents by Organisation Size

Sample Composition by Organisation Industry Sector

Professional, Scientific and Technical Services 22%

Figure 2: Survey Composition by Organisation Industry Sector

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Survey Respondents by Organisation Position

Owner / CEO 38%

Figure 3: Survey Respondents by Organisation Position

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THE INNOVATION PERSPECTIVE

DISRUPTIVE FORCES IMPACTING ORGANISATION OVER THE PAST 12 MONTHS

Impact of Disruptive Forces over Past 12 Months

Direct customer relationships 6.6

Figure 4: Disruptive Forces Impacting Organisation over the past 12 Months

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Table 2: Major Disruption Forces Anticipated

Major Disruption Forces Anticipated

Industry/Sector Shifts Disruption forces

Artificial intelligence, augmented reality

Automation / Artificial Intelligence Automation of professional white-collar tasks, availability of

An ageing population, aged care reform, implementation of

Economic Conditions Economic cycles, slowing economy

Consumer-directed care - consumers choose service, Industry

Empowered Customers Customer empowerment

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Major Disruption Forces Anticipated (cont.)

Industry/Sector Shifts Disruption forces

Energy costs, increasing power prices due to phase out of coal

ASIC and Government regulations, legislation changes,

Competing interests for customers

Increasing competition within Australia, industry competency

Pace of Innovation Innovations, the pace of change

Skilled Workforce Skill shortage, staff retention

Changes in the traditional supply chain; supplying directly to

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Overall Impact of Disruptive Shifts on Industries and Sectors

0% 20% 40% 60%

Figure 5: Overall Impact of Disruptive Industry/Sector Shifts

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Major Objectives driving Innovation Strategies

0% 10% 20% 30% 40% 50% 60%