November 12, 2012
Booz & Company’s annual global study of R&D spending reveals that successful innovators bring clarity to the early stage of innovation. It’s when companies generate ideas and decide which ones to develop.
Just 43 percent of participants said they were highly effective in generating new ideas. And only 36 percent felt the same way about converting ideas to development projects. Altogether, only a quarter of all companies indicated they were highly effective at the front end of innovation. Which is a shocking conclusion.
There are three fundamental innovation strategies. You can categorize companies as Need Seekers, Market Readers, or Technology Drivers. Booz & Company describes them as follows:
1. Need Seekers, such as Apple and Procter & Gamble, make a point of engaging customers directly to generate new ideas. They develop new products and services based on superior end-user understanding.
2. Market Readers, such as Hyundai and Caterpillar, use a variety of means to generate ideas by closely monitoring their markets, customers, and competitors, focusing largely on creating value through incremental innovations.
3. Technology Drivers, such as Google and Bosch, depend heavily on their internal technological capabilities to develop new products and services.
Click here to read more: LinkedIn