A correct reading of the market and what matters to customers. Appropriate management of the innovation process. While firms usually give explicit attention to market factors, they are much less likely to attend to the management of the innovation process.
Few firms have explicit success measures for innovations.
Even fewer have an innovation policy to guide the innovation process. Innovation delights customers while meeting needs of stake-holders and allowing the company to remain financially viable. Innovation requires vision to drive the change process. Top management needs to be able to inspire staff towards a single vision or a sense of purpose within which to innovate. Innovation requires a risk-tolerant environment where you are not expected always to succeed.