At Arthur D. Little, we’ve found that in almost all industry sectors, the 25 per cent of companies that are best at innovating outperform the 25 per cent of companies in their sector that are worst, with a surprisingly wide margin. Managers estimate that by becoming really good at innovating these efforts they can increase profit margins by about 30 per cent.
Arthur D. Little developed a diagnostic framework for our ongoing Innovation Excellence study. It is accessible for companies interested in benchmarking their innovation performance against peers and understanding the opportunities to improve innovation practices. All data is presented in an anonymized format. If you are interested please contact the benchmark team. The study toolkit is available in PDF or online, in English, Chinese and Arabic.
It is increasingly important for companies to be able to deliver a pipeline of serial Breakthrough (or Radical) Innovations in order to respond to emerging competition, disruptions to core business, and increasing customer power. To investigate this further, Arthur D. Little completed a survey of over 80 large organizations to explore best practices for how to deliver a consistent pipeline of Breakthrough Innovations – meaning radically-new products, performance features, business models or market space. The results were both expected and unexpected, and yielded many valuable insights for companies wishing systematize their breakthrough innovation performance. [...]
To maintain our insights into emerging R&D management practices ADL launched a formal study in which we prioritized a deep qualitative engagement with innovation leaders. From the rich material that these companies shared with us, ADL identified common challenges and insight into how innovation leaders are responding. ADL is developing a series of viewpoints, each focused on specific aspects of the study (Idea Management, Resource and Competence Management, Portfolio Management, and Stagegate Management). [...]