Financial Goals Take Priority
Among executives, pursuing company profits has eclipsed product innovation.
For the first time in the four years of this survey, companies are more focused on achieving financial goals than on pursuing product innovation efforts. Compared to last year, the share of executives who rank financial goals as a top priority has increased by 20 percentage points (66% vs. 46%). When taking a look at regional differences, the survey found that prioritizing profits over other objectives is also more prominent among all respondents at German companies than among businesses in other parts of the world (67% vs. 58% of global companies).
We also see a growing emphasis on financial metrics in the ways executives are evaluating their AI efforts. This year, cost savings, ROI and workforce efficiency improvements have surpassed last year’s top measures of AI success: optimized product designs, increased automation of manual tasks, and improved data processing and analysis.
TE Takeaway
Executive priorities are shifting from product innovation toward financial objectives, driven by two forces. First, rising macro uncertainty and margin pressure have elevated the importance of cash flow and resilience. Additionally, scaled adoption of AI and other technologies now requires innovation to deliver outcomes through ROI, cost savings, and productivity gains. This shifting mindset is reshaping how innovation is judged—from product development to system-level optimization and repeatable deployment across design, manufacturing, and operations. Those who tie innovation more tightly to strategic growth will be better positioned to compete through cycles. Acknowledging this business dynamic, TE continues to invest in innovation and engineering capabilities. We are working to accelerate scalable deployment and translate technology advances into measurable improvements in reliability and efficiency and lower total cost of ownership—working with our customers to achieve their business goals and compete more effectively in a challenging global economy.
Chao Zhang
General Manager, Vice President of HR
TE China