The way firms and governments innovate will change radically over the coming years. Arthur D. Little state in its recently released report 'Innovation Manifesto' that the change is driven by external factors such as the ongoing globalization, the shift of economic power away from the west, the continuing economic uncertainty and more individual customer requirements.
The strategic consulting firm outlines five key innovation concepts in the report that companies can focus on in order to be ready for the future:
1. Client based innovation - connecting with your customers in more meaningful way.
2. Pro-active business model innovation - identifying new ways to create innovative business models.
3. Sustainable innovation - bringing forth new innovations in emerging low wage markets, and adapting them to more developed markets.
4. High speed / low risk innovation - Bringing products and services to the market in a fast and efficient way.
5. Integrated innovation - Take the traditional innovation approaches from product development and apply them in the value chain.
Arthur D. Little believes that organizations can tackle significant problems in their specific industries by using these models. Whether it is CO2/emission-reduction in the automotive industry, recyclable assets in the energy sector, or increased mobility as in the new communication requirements for the telecom industry: success will lie in the ability of organizations to use these approaches for radical innovation.
Rick Eagar, Head of the Technology and Innovation Management Practice at Arthur D. Little, says: "Organizations and governments are currently facing unprecedented challenges and have to take on new forms of innovation in order to survive. The winners of the 21st century are those that innovate better than their competitors."