Turning Megatrends and Emerging Technologies into Growth
Opportunities. Is your company sufficiently innovative?
Most CEOs and CTOs would like to say yes, although
Arthur D. Little’s recent Global Innovation Excellence
study reveals that most companies are focusing on
incremental, rather than radical, innovation. The most
successful innovators in the study, in terms of EBIT and
sales from new products, spend as much as one third of
total R&D resources on radical innovation activities.
While in the past, successful companies prospered by
focusing on incremental innovation, tweaking existing
products and processes, today they face difficulties
competing with start-ups and younger companies with
game-changing offerings. While new entrants usually
benefit from lean and flexible organizations suited to
the culture and processes needed for radical innovation,
previously successful incumbents struggle to adapt their
bigger and more cumbersome organizations. In this
article, Arthur D. Little shares its perspective on how
larger companies
can become “radical innovators” by focusing on three
critical key success factors. pdf 2014