N=1, R=G describes a new age of innovation driven by an aggressive use of IT, especially analytics, and an extensive, sophisticated, real-time supply chain. A new survey by Accenture indicates many companies think the barriers to innovation are mostly internal, as in corporate politics and motivation. Is there a disconnect here?

Consulting firm Accenture conducted a survey late last year of 601 senior executives in Canada, Germany, the United Kingdom, and the United States. The survey sought to gauge companies' efforts toward business innovation: it's significance for their organizations, and their success in achieving it.

First, the good news; Most companies "get it" when it comes to innovation -- that innovation is the fuel that drives the business forward. A significant number of respondents, 17.5%, said their companies are "totally" dependent on innovation for their long-term success -- "we intend to transform our business in the next 3-5 years," was the response they indicated. Almost half, 44.1%, said they're "largely" dependent on innovation to grow their business, while less than 10% said they intend to concentrate mostly or exclusively on their current core business.

Unfortunately, people at the top don't seem to be taking their share of the responsibility for the innovation agenda.

While nearly two-thirds (62%) of respondents said that their organization’s business strategy is either totally or largely dependent on innovation, only 21% of respondents said their companies have a chief innovation executive, and even fewer -- 11% -- said there is a C-suite executive in charge of the process. Nearly half (48%) of respondents said that multiple executives are responsible for innovation in their companies.

Having a single C-level executive in charge of innovation across the company makes a lot of sense. Accenture broke out several survey results according to respondents who indicated they had a dedicated innovation executive and those who didn't, and the results were impressive:

How satisfied are you with your organization's performance in the following innovation areas (percent of respondents that are very satisfied):
• Growing your portfolio -- 36% (dedicated innovation executive); 13% (no dedicated innovative executive)
• Developing a pipeline of initiatives -- 36% (dedicated innovation executive); 14% (no dedicated innovative executive)

When it comes to the challenges represented by innovation, most respondents seemed to feel it's an internal thing:

Which of the following barriers to innovation have you observed often in your organization? Select all that apply. (Here are the top three.)
1. The organization tends to pursue line extensions rather than developing totally new business models -- 45.1%
2. The organization has prioritized short-term financial results over investing for the long term -- 42.8%
3. Opportunities to exploit underdeveloped areas/markets often die because they can never find a home to nurture them -- 36.6%

These are systemic, organizational problems. It's easy to pay lip service to innovation; it's a lot harder to walk the walk. However, even when presented with external factors, many respondents still chose internal challenges as the most difficult to overcome:

What would you say are the greatest innovation-related challenges facing your organization over the next two years? Select up to three.

(Here are the top three:)
1. Changing the organizational culture -- 30.6%
2. Reducing time to market for an innovation -- 30.1%
3. Transforming ideas into marketable goods/services -- 28.6%

(Here are the bottom three:)
1. Leveraging new technology -- 12.8%
2. Eliciting and using customer feedback -- 10.6%
3. Identifying and collaborating with suppliers, subcontractors, and other external partners -- 9.5%

Correct me if I'm wrong, but aren't the bottom three what N=1 and R=G are all about? And most companies think they have those knocked? I fear some people are significantly underestimating what it will take to succeed in the new age of innovation.

I understand that internal challenges often seem the most daunting. That goes for anything from lawn work (self motivation) to organizing a high-school fund-raising drive (herding cats). But companies should not make the mistake of underestimating the challenges represented by the role of technology and the supply chain in adapting to the fast-paced business market that's now evolving.

Authors Prahalad and Krishnan spend a good bit of time in chapter six of the book talking about the role of the CIO in the new age of innovation. And here they're talking about the Chief Information Officer. I believe these survey points reinforce their contention that the chief information officer must evolve into something akin to a chief innovation officer. Someone has to be knowledgeable enough about technology to optimize its use, especially in regards to analyzing customer interactions and consumer trends, while at the same time being able to look across the organization to coordinate and motivate teams of workers, streamline business processes, and exploit the resources available in the supply chain, both internal and external. The CIO (chief information officer/chief innovation officer) is probably that person.

It's good to note that most executives are aware of the priority innovation must be in their organizations. They must also be aware of the barriers, the challenges, and the opportunities presented by innovation, and prioritize accordingly.