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Gaining competitive advantage Innovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey 12 April 2013 Nick Kós Country Managing Partner PwC Hungary

Gaining competitive advantage

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Gaining competitive advantage. Innovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey. 12 April 2013 Nick Kós Country Managing Partner PwC Hungary. Gaining competitive advantage. What is innovation? Why is innovation so important to us? - PowerPoint PPT Presentation

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Page 1: Gaining competitive advantage

Gaining competitive advantageInnovation and Competitiveness in the eyes of CEOs PwC 2nd Hungary CEO Survey

12 April 2013

Nick KósCountry Managing Partner PwC Hungary

Page 2: Gaining competitive advantage

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Gaining competitive advantage

1.What is innovation?2.Why is innovation so important to us? 3.How do CEOs see innovation and competitiveness?

4.The 1M USD question: how shall big companies become entrepreneurial in these challenging times?

12 April 2013

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1. What is innovation?

12 April 20134

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2. Why is innovation so important to us?

12 April 20136

• Disruptive changes in more and more areas• Countinous pressure on efficiency • Rapidly changing customer needs+1: Employer branding: innovation is sexy

Intrapreneurship

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2. Why is innovation so important to us?

12 April 20137

• High priority for today’s companies: cultural change needed

• One of the priorities of PwC as Trusted Business Advisor -PRTM Management Consulting as part of PwC now

• PwC has a dedicated Innovation Office and Global Innovation Network

• New initiative: Global Innovation Survey• PwC Local initiatives – Innovation@Poland

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3. How do CEOs see innovation and competitiveness?

• 16th Global CEO Survey – 1330 CEOs• 2nd Hungarian CEO Survey - 171 interviews were conducted with Hungarian CEOs between October and December, 2013

12 April 2013

CEOs priority: cost cutting and operational efficiency…

…Meanwhile innovation isn’t possible without investment

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3. How do CEOs see innovation and competitiveness?

912 April 2013

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3. How do CEOs see innovation and competitiveness?

1012 April 2013

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3. How do CEOs see innovation and competitiveness?

1112 April 2013

14%

14%

3. New investments, new profiles 13%

8. Innovation 9%

26. R&D 2%

1. Improving operational efficiency

2. Implementing cost reduction

Which factors have improved your company’s competitiveness in the past 12 months?

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3. How do CEOs see innovation and competitiveness?

1212 April 2013

31%

26%

3. Changes in taxation 22%

4. Competition 22%

14. Innovation 3%

1. Shrinking market

2. Changes in legislationWhat is the biggest challenge in your industry?

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3. How do CEOs see innovation and competitiveness? - government and regulators

február 2013

The government has reduced the regulatory burden on corporations

The government has maintained a level playing field despite having stakes in private enterprises

The government is taking adequate steps to improve the country’s infrastructure (e.g. electricity, water supply, transport, broadband)

The government supports innovation in the private sector

0 5 10 15 20 25 30 35

11

11

20

30

In Hungarian CEOs opinion what role does the government take on?

And in comparison what should be its priority?

Reducing poverty and inequality

Ensuring financial sector stability

Creating and fostering a skilled workforce

0 10 20 30 40 50 60 70

29

59

60

Percentage of CEOs

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4. An approach to corporate innovation by PwC - 1

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First: Throw Out What You Don't Need.• Don't weigh your innovation portfolio down

• Clean the pipeline

• Reduce complexity

Next: Move Faster.• Severe conditions punish slow movers.

Now, Manage Capacity.• Take a hard look at what you have on hand and what you will need to survive for the next 12 months.

• Find new sources

• Identify constraints

Convert What You Have Into Something More Valuable.• Be imaginative and bold

• Create business model innovations for current products

• Innovate on cost reductions for existing products and services

• Leverage strong customer loyalty to provide new customer experiences

And Finally: Keep Your Head.• Don’t let the current situation affect your basic good judgment.

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4. An approach to corporate innovation by PwC - 2

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Getting closer to your customers:• ...but how you develop it, how you sell it, how you deliver it, and what you sell with it.• For example, over half of CEOs in our 16th Annual Global CEO Survey are increasing

the emphasis of their company’s innovation portfolio on business model innovations.

Becoming systematic about innovation:• Effective innovators have structures in place to encourage entrepreneurial thinking

at employee level...• ...while having strong leadership backing and centralised support.• Companies are also looking to harness the power of ideas that come from outside

their organisation.

The long haul:• Continuous innovators have a pipeline of incremental ideas as well as longer term big

bets.• How are you creating the business of tomorrow, even as you keep your organisation

lean today?

Embracing digital:• The complete change of operational models as a result of digitalisation is driving

many forms of innovation.• Are you fully taking advantage of what digital means for your business?

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If we want to turn HungaryFrom Assembly lines in Electronics vs. …

12 April 201316