A New Report by Arthur D. Little Presents How Businesses Are Rethinking Their Innovation Efforts to Create Value
A new report by Arthur D. Little explores the reasons why both
industry and government surveys repeatedly show some companies are
more successful at harnessing the power of innovation than others. A
key success factor behind high street clothing giant Zara, electronics
behemoth Phillips, and automotive manufacturers Scania and Volvo,
innovation programmes that deliver real value require businesses first
identify the type of value they aim to create and then to tailor the
innovation process based on the businesses´ specific marketplace.
Ensuring innovation investment is maximised in such competitive
and fast-moving sectors takes far more than just a CEO reiterating
their commitment to research and development in the annual report -
but is there a formula for securing increased performance per R&D
dollar spent? Arthur D. Little´s latest report "Innovation for Value"
examines and articulates how businesses can strategically review their
innovation culture and processes to create business value and
long-term competitive advantage.
"Our research has shown that successful innovators achieve on
average two-and-a-half times higher sales of new products and achieve
10 times higher returns on their innovation investment than the
underperformers," reflects Per I Nilsson, Director of Arthur D.
Little´s Technology & Innovation Management Practice. "Innovation is
not about how much you spend, but why and how you spend it. We aim to
show CEOs and business leaders how maintaining an innovation strategy
based on specific goals and with an eye to one´s own industry
landscape is vital to improving the overall value that a business
gains from its innovation efforts."
Companies across all sectors are increasingly developing
sophisticated approaches to solving business goals as varied as
climate change, IT infrastructure, new product development and
Corporate Social Responsibility. However, in many cases such
activities are not linked back to the company´s overall business
targets. According to Arthur D. Little´s study, businesses achieve the
most impact for their innovation efforts when they first identify what
source of value creation is most suitable to their business model:
top-line growth, bottom-line optimization, or enhanced shareholder
value.
According to the report, innovation consultants and practitioners
who advocate a single best practice process for building a company´s
innovation program have got it wrong. The right choice for how to run
innovation within an organization depends crucially on industry
sector, competitive environment, and where the company is positioned
in the value chain. The Innovation for Value report provides Arthur D.
Little´s Aspiration-vs.-Concept matrix, a useful guide for
organizations to better understand how to effectively deliver
innovation within their market.
The Innovation for Value report is now available for download at
http://www.adl.com/reports.html?&view=77.
About Arthur D. Little
Arthur D. Little (ADL), founded in 1886, is a leading global
management consulting firm that links strategy, innovation and
technology to master complex business challenges while delivering
sustainable results to our clients. Arthur D. Little has a
collaborative client engagement style, exceptional people, and a
firm-wide commitment to quality and integrity. ADL is proud to serve
many of the Fortune 100 companies globally in addition to many other
leading firms and public sector organisations.
Arthur D Little has over 30 offices worldwide, employing over
1,000 people. If you would like additional information on the firm,
please visit www.adl.com.