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In recent years organisations have been striving to continuously innovate in order to remain competitive and relevant, ultimately to meet the growing digital demands of customers and citizens.

As a result, Australian organisations, like their global counterparts, have increasingly embraced a range of growth-focused innovation practices including crowdsourcing platforms, sprint-based product and service development, exploring new partnerships and building safe to fail innovation cultures.

Unfortunately, the COVID-19 health and economic crisis has presented great challenges with unprecedented disruption to individuals, families, businesses and government organisations. Leaders around the world have been struggling to respond to the crisis and balance the health and economic priorities of their citizens. Even organisations that have previously embraced disruption, and led the way with innovative solutions, are caught up in the maelstrom like everyone else.

KPMG Digital Delta's Innovation Trends 2020 provides research data and analysis to provide an understanding of the changing perceptions of innovation through this turbulent and uncertain period. The report aims to help inform future priorities and investment decisions.

Key findings


COVID-19 is driving an increased focus on innovation.

  • Over 92 percent of respondents feel that COVID-19 has either increased their organisation’s focus on innovation or maintained previous levels.
    • More than two thirds (73 percent) of respondents feel that COVID-19 has increased focus on innovation.
    • Less than 8 percent feel that COVID-19 will result in a reduction in focus on innovation.

 

However, some innovation leaders will need to do more with less.

  • Despite the increased focus on innovation, 65 percent of respondents feel that innovation funding will be reduced, or remain steady, as a result of COVID-19 related impacts.
    • Approximately 30 percent of respondents anticipate a reduction in innovation investment while facing an increase (or no change) to their organisation’s focus on innovation.
    • One third of respondents expect an increase in both focus on innovation and funding available for pursuing innovation.
    • Only 8 percent of respondents expect both innovation focus and innovation funding to greatly increase.

 

Organisations are focusing on more incremental/short-term innovation outcomes.

  • There has been an increase in pivoting and incremental innovations with short-term financial returns, and a decline in the pursuit of disruptive innovation.
    • An increase in the focus on pivoting or adapting current products and services to meet changing needs going forward is expected by 73 percent of the respondents.
    • Incremental innovations will be pursued by 65 percent of respondents.
    • The largest decline in innovation activities was reported for disruptive products or services, with 23 percent of larger organisations expecting a decline in the pursuit of disruptive innovation and 15 percent across all respondents.
    • An enhanced focus on innovative ideas that create financial impact within 12 months was reported by 61 percent of respondents.

 

Read our media release

Download the full report

Innovation Trends 2020, a report from KPMG Digital Delta, provides research data and analysis to provide an understanding of the changing perceptions of innovation through this turbulent and uncertain period.

The report aims to help inform future priorities and investment decisions.

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