Focus on New Business Areas will Increase Dramatically
Literature is rife with books and articles on the history of innovation management. But what about the future? A recent global survey describes the five major innovation management concepts to watch in the next ten years.
Arthur D. Little has conducted a global survey of CIOs and CTOs (83 Chief Technology Officers and Chief Innovation Officers across Europe, US and Asia) to gauge their views on emerging trends over the next ten years in the area of innovation management.
According to the survey understanding what customers want remains top innovation management priority. The result also shows that focus on new business areas will increase dramatically in the next ten years.
Rick Eagar, Head of the UK Technology and Innovation Management Practice at Arthur D. Little, and one of the authors of the report, comments the result:
- “We predict that businesses will increasingly need to focus on radical innovation in order to stay ahead of the pack. For example, CTOs expect the proportion of innovative new products in adjacent and new business areas to be double that of the last decade. Such an increase would have fundamental consequences for the nature of innovation management, with companies operating more in untested markets and exposed to greater risk. The accelerating pace of transfer of innovation resources to the developing economies also poses significant global management challenges.”
Key findings in the survey include:
- Share of products/services in new business areas expected to double from 20% in 2010 to 40% in 2020
- Share of revenue generated from new products/services expected to increase from 30% in 2010 to 40% in 2020
- Unit cost reductions achieved through innovation expected to increase by 50% in the next ten years
- The most important area for innovation investment will continue to be gaining a deeper understanding of the customer
- Integrating innovation across functions, and innovating in and for emerging markets are also set for significant investment increases in the next ten years
- European-based companies expect increasingly to relocate their innovation capabilities from Europe & US to Asia & South America, doubling from 12% share in 2010 to 25% in 2020
Arthur D. Little has produced a report based on these and other findings entitled “The Future of Innovation Management: The Next 10 Years”, which is available for download here.
To find out more please contact Marion M. Sommerwerck, Arthur D. Little GmbH, +49 (0)211 860 9523, Sommerwerck.email@example.com
Arthur D. Little – 125 years of innovation
Founded in 1886 as the world’s first consulting firm, Arthur D. Little has continually transformed business thinking and practice by applying its expertise in the areas of strategy, innovation and technology. Today, Arthur D. Little helps companies to create growth, overcome challenges, improve innovation capabilities, and increase efficiency and competitiveness in a globalised marketplace.