(This entire posting is quoted from Businesswire.com) — start quote–
Survey Reveals 50% of Companies Dissatisfied with Return on Innovation Investment
72% Still Plan to Increase Spending
STAMFORD, Conn.–(BUSINESS WIRE)–Archstone Consulting, a rapidly growing strategy and operations management consulting firm, today announced results from a new survey which found that while 50% of companies are dissatisfied with their return on innovation spending, 72% still plan to increase spending on innovation.
Furthermore, 50% of the companies reported that 10% to 25% of their revenues over the next 3 years would be driven by products and services that will be developed over the next 12 months. Less than 5% of these companies believe they have a highly effective innovation process and only a small number are using state of the art approaches to innovation like open networks and innovation based metrics.
To bridge this gap, 86% of companies who responded are leveraging external resources to help identify new innovation strategies, especially during the upfront discovery phase. In particular, companies are investing significantly in consumer research to maximize innovative techniques for a better understanding of the consumer. Companies are also tapping into formal and informal inventor networks to find new ideas, concepts, improvements and enablers.
External resources cited include consumer research firms, brand strategy and innovation firms, management consultants, advertising agencies and brand and identity design firms.
“In today’s fast paced business environment, companies are increasingly relying on new products to drive the top line growth,” said Carrie L. Shea, Global Strategy Practice Leader, Archstone Consulting. “Yet many of the companies we surveyed were very dissatisfied with the overall innovation process and a lack of confidence in their innovation investments.”
Have a Formal Strategy – Substantial opportunity exists for companies to improve their innovation effectiveness as 55% of the companies surveyed do not have a formal innovation strategy in place. Furthermore, only 5% of respondents think they innovate very successfully.
Commit to the Discovery Phase – Over 80% of respondents state they are only somewhat effective or very ineffective in the discover phase of innovation, resulting in fewer quality opportunities.
‘The survey also found that having a culture that does not foster risk taking was the biggest impediment to innovation,’….”
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– Daniel Montano
Author of Innovation Strategies of the World’s Most Innovative Companies. Analyzes the innovation strategies of P&G, Apple, IDEO, eBay, GE, Gillette, IBM, Nokia, Philips, Samsung, Target, Toyota, IKEA, Virgin, and companies nominated by BusinessWeek Magazine as the “World’s Most Innovative Companies” ©2006 Daniel Montano.