Formalized Innovation is Competitive Advantage

Comapnies that have a focus on listening to customers and opening up external networks to facilitate collecting ideas are more competitive.

Innovation is often the key value driver, according to a new study 2008 State of Innovation Study by Archstone Consulting. Companies that have organized around innovation, have instilled a focus on consumer listening, opened up external networks to facilitate idea collection, created metrics to measure progress against these goals and are more often than not leaders in innovation, said Jam Attari, a Principal in Archstone Consultings innovation practice.

The study identified key emerging trends in best practices for innovation such as:

  • Foster Culture of Innovation
  • Convert Innovative Ideas Into Commercial Success
  • Discover New Ideas Through Outside Channels
  • Establish a Formal, Yet Flexible, Innovation Processes

Other fiindings of the report include:

  • Only 36% of all respondents stated that their organization had a formal innovation strategy.
  • Almost 80% of Best Practice Companies use a defined, repeatable process to uncover new ideas, as opposed to 36% of Non Best Practice Companies.
  • Innovation is often the key value driver, according to a new study "2008 State of Innovation Study" by Archstone Consulting. "Companies that have organized around innovation, have instilled a focus on consumer listening, opened up external networks to facilitate idea collection, created metrics to measure progress against these goals and are more often than not leaders in innovation," said Jam Attari, a Principal in Archstone Consultings innovation practice.

    The study identified key emerging trends in best practices for innovation such as:

    • Foster "Culture of Innovation"
    • Convert Innovative Ideas Into Commercial Success
    • Discover New Ideas Through Outside Channels
    • Establish a Formal, Yet Flexible, Innovation Processes

    Other fiindings of the report include:

    • Only 36% of all respondents stated that their organization had a formal innovation strategy.
    • Almost 80% of Best Practice Companies use a defined, repeatable process to uncover new ideas, as opposed to 36% of Non Best Practice Companies.
    • Only 22% of all respondents indicated that they work collaboratively with other companies to identify new products.
    • 87% of Best Practice Companies felt they were effective at generating and discovering new ideas, while only 51% of Non Best Practice Companies rated themselves as effective.
    • 85% of Best Practice Companies rated themselves as effective at bringing new ideas to market, while only 49% of Non Best Practice Companies rated themselves as effective.
    • 72% of all respondents stated it was important to conduct regular studies of customers, channel partners and others to uncover emerging customer needs, yet only 56% of companies were effective at doing so.

    In addition to the above statistics, the Archstone Consulting survey also uncovered specific best practice findings surrounding the Consumer Package Goods industry include:

    • CPG companies excel in protecting current market share and revitalizing brands: Leading CPG companies have developed innovation processes and tools that revitalize brands and serve to protect market share.
    • 52% of best practice CPG companies focus on brand revitalization/ products/ services for their innovation
    • 71% of best in class CPG companies focus on entering new markets
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