Transformation by Radical Innovation
by Petter Kilefors, Nils Bohlin, Katia Valtorta, Anders Johansson, Johan Geterud
Turning Megatrends and Emerging Technologies into Growth Opportunities

“The most successful companies spend 1/3 of their R&D budget on radical innovation” 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.