New product development (NPD) and innovation have grown to become the sole driver of establishing sustainable growth for many organizations. One can invest significant funds into the R&D department, however, how effective is this?
The fact that innovation and R&D spending are gaining attention – even in economic recession – brings the following question to mind: Is your organization outperforming the industry in innovation in relation to speed?
Now, you may be one of those executives who think that speed is not an important issue since your company wants to represent quality over quantity, meaning: that you would rather have fewer new product releases of great quality than many releases and only incremental quality increases.
In essence, there is absolutely nothing wrong with wanting to invest in quality, however, speed in innovation should not be neglected. Your competitors may move quicker with less than superior product innovations and capture a significant market share. By doing so, they enter a virtuous circle in which they are able to increase revenue on a short term, which, in turn, they can invest in more long-term innovation projects.
By having a good portfolio of short-term and long-term innovation projects, an organization is better equipped to guard itself from competitors and to achieve sustainable growth. But how to ensure that the short-term innovations are brought to market in a speedy fashion?
Here are some of the 17 drivers of new product development speed that Capgemini Consulting has defined:
- Goal clarity
A journey without a goal may be interesting and full of adventure, but will not add value to your organization in form of short-term gains. Set a clear goal for your innovation team and communicate it well.
- Top management support
A captain that does not support its crew may soon have a mutiny on his hands. Ensure that your innovation team gets full support in both focus and resources.
- Process formalization
Some say that process kills progress in innovation, however, without some sort of path set out, it can take years before an idea has reached maturity. Balance the trade-off.
- Team dedication
Does your organization have the people with the right mindset to innovate? Are your employees willing to step up to the plate? And what is the composition of your innovation team?
- Team autonomy
Micro-management is the killer of all creativity. Trust your innovation team.
The articles posted on www.robinchu.com represent the vision and opinion of the author about the subjects. The views expressed in this blog reflect the author’s personal views about any or all of the subjects and is not part of the official Capgemini Consulting company view.