What makes one industry more innovative in terms of quotient in Nigeria is on the extent to which they differ on various steps and actions needed to make innovation happens and performing.
2. 1 August 2017 Enterprations Weekly Strategy
n industry or country is hyped as innovative theircompanies.Theaimistogivebusinessmanagersa
when multiple activities are performed by toolforinnovationinspiringandmanagement.
HowquotientarethesectorsAdifferent actions towards creating a new
solution or reinventing the existing one. To understand From our analysis of the employees' aggregated
the effectiveness and efficiency of country's innovation views on the process and performance of innovation
ecosystem, the World Intellectual Property activities, it was discovered that private sector has 88
Organisation (WIPO) studies countries in the six score which placed it as the highly innovative quotient
continents yearly. The Global Innovation Index 2017 sector. When the analysis was done on the industry
report, indicating the outcomes of the organisation's basis, manufacturing sector with 96 score is more
measurement of the ecosystem reveals that Nigeria quotient than services which has 80 score. These show
ranks 119 out of 127 ranked economies, falling behind that manufacturing sector is the star of innovation
Kenya, Rwanda, Mozambique, Uganda, Malawi, while services sector still seeking innovation. In other
Madagascar and Senegal on the Sub-Saharan African words, a set of multiple activities being done are yet to
region. This year performance is not quite different take services sector to a highly innovative sector
from the 2016's Index, which established that Nigeria whereas manufacturing sector has reached the
was114thoutof128countriesintheworld. pinnacle.
These positions indicate that Nigeria is lagging behind
Emerging Obstacles in the Process
in terms of patent filings to education spending
andPerformanceproviding decision makers a high-level look at the
What makes one sector more innovative in terms ofinnovative activity that progressively drives economic
quotient is on the extent to which they differ on variousand social growth, the main metrics used in the
steps and actions needed to make innovation happensanalysis. The performance has also called for critical
thinking with the specific posers such as at what period and performing. Despite being the most innovative
do public and private sectors in Nigeria consider industry, manufacturing is slow in rolling out new
innovation as a core activity? How many firms do products and new businesses while in the services
innovate? What is the amount of resources devoted to industry, development of new product don't finish on
innovation? Do sources of innovative internal or time. Manufacturing's slownesscould be hinged on the
external to firms in manufacturing and services industry's high risk-averse attitude towards investing
sectors? in novel ideas which is highly passive in the services
To understand innovation process and industry. Firms in the services do not have dedicated
performance in the two sectors, we studied Innovation budget for innovation. This remains one of the factors
Quotient using Power and Grace's scale. The scale contributing to its present position innovation seeker
classifies sector or company into spectator, seeker and whereas companies in the manufacturing have
star. A sector or company with less than 55 score is specialized budget for innovative activities such as
considered spectator while more than 55 to 84 and formalprogrammes.
more than 85 is designated as seeker and star People process towards making innovation
respectively. Employees in Nigeria's services and happens is highly prioritised in the manufacturing
manufacturing sectors were asked to express their industry than services. For example, innovation
views about innovation process and performance in projects involve teammembers and leaders, working in
3. quick exchange of ideas. Whenever
innovation happens in the services
industry, it is more celebrated and
rewarded than in the manufacturing
industry.
Innovation Process Vs
I n n o v a t i o n
Performance
In this section, we intend to
understand relationship between
innovation process and innovation
performance of the two industries.
Moderate negative relationship was
discovered. This indicates that as
innovation process goes up per
industry performance goes up too
but slightly comes down. Thus,
different functional areas in the manufacturing available innovation process
industry. This is different from what attainable in the activities are not adequate to ensure effective
services. Few of innovation projects involve team innovationperformanceinthetwoindustries.
members. For robust ideas formation, companies
OvercomingtheMainObstacleswithin the manufacturing industry also consider few
The best approach to resolve the identified issues both
good ideas for new products and businesses from
in the process and performance is collaboration with
o u t s i d e . T h e
examined process go
in a long way of
d e t e r m i n i n g
performance of each
i n d u s t r y .
M a n u f a c t u r i n g
i n d u s t r y i s
performing well in six
functional innovative
areas while services is
only making headway
in one area. In the
m a n u f a c t u r i n g ,
c o m p a n i e s a r e
re c o g n i s i n g a n d
e x p l o i t i n g t h e
diversity of people's
t a l e n t s , m a n a g e
innovation projects
by cross-functional
t e a m s , p o s s e s s
quantified goals for
innovation and its
impact on future
competitors, consulting firms, universities amongperformance and supporting champions of innovation.
others. Companies in the two industries need toensureOurstudyequallyfoundthatcompaniesaresucceeding
their intimacy with these actors towards appropriateindevelopingnewproductsandgettingthemtomarket
understandingofinnovationprocessandperformance,but at a slow rate. Effectively, companies breakdown
especially in the areas of strategic thinking, staffing ofbarriers between varied functional areas to ensure
August 2017 Enterprations Weekly Strategy2
Innovation Process
Innovation Performance
4. innovation unit and budget planning. Without this, the
identifiedclogswillremain in the innovation wheeland
possibleextinctionofproductsand/orcompanies.
Contact
Suite 19, 3rd Floor, Lagos City Mall, Onikan, Lagos
State
www.enterprations.com
info@enterprations.com
August 2017 Enterprations Weekly Strategy3
Innovation Process Versus Innovation Performance
