Tangible R&D Innovation Techniques Gaining Ground , Profit Measurement Is Increasing
NEEDHAM, Mass.--(BUSINESS WIRE)--June 26, 2008-- Goldense Group, Inc. [GGI] primary research finds progress in the next major initiative to improve new product pipeline productivity in research, development, and engineering. "We have been conducting biennial surveys of industry for a decade now in this area," says President Bradford L. Goldense, and it appears that companies are now beginning to focus on innovation measures and tangible tools to boost their overall innovativeness.
More than 200 companies that design and develop new products participated in the research. 98% of respondents engage in product development. 74% engage in advanced development, applied research, and/or basic research.
Five distinct areas where innovation is tangible and can be directed or managed by executives were researched: Innovation Environment, Innovation Processes, Innovation Identity, Innovation Tools, and Metrics.
Our findings clearly indicate that there is an increased emphasis on measuring revenue and profits over the past decade. Some 55% of companies now have a working definition for a "new product" and measure cumulative new product revenues in a rolling manner over time, up 20% from a decade ago. The number of corporations measuring new product profits is also starting to rise. "It is the first significant rise in measuring profit from R&D in ten years," says Goldense.
Only a few corporations actively brand their product development capabilities external to the corporation. Internal branding and senior management reinforcement of innovation varies greatly, but demand for " tangible innovation tools" is increasing. GGI identified over 250 generally available techniques of which 67 were researched. "There are four or five "most popular corporate tools emerging," not including common usages of Microsoft's Office and equivalent suites during meetings," says Goldense. "The market is at the beginning and there is a great deal of turmoil. Today's winners hold a tenuous position."
GGI's previous research has been published or cited by Business Week, Industry Week, R&D Magazine, and CFO Magazine among others. Complimentary descriptions of GGI's Biennial Surveys are available on the GGI Web site at http://www.goldensegroupinc.com. Results may be purchased through The Wisdom iStore on this site.
GGI is a consulting, research, and education firm concentrating in advanced business and technology management practices for line management functions.
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