2 min read •

Focus on new business areas to dramatically increase in next ten years, reveals global innovation survey from Arthur D. Little

<p>Understanding what customers want remains top innovation management priority</p>

Arthur D. Little has conducted a global survey of CIOs and CTOs1 to gauge their views on emerging trends over the next ten years in the area of innovation management.  Key findings are listed in this piece:

  • Share of products/services in new business areas expected to double from 20% in 2010 to 40% in 2020
  • Share of revenue generated from new products/services expected to increase from 30% in 2010 to 40% in 2020
  • Unit cost reductions achieved through innovation expected to increase by 50% in the next ten years
  • The most important area for innovation investment will continue to be gaining a deeper understanding of the customer
  • Integrating innovation across functions,  and innovating in and for emerging markets are also set for significant investment increases in the next ten years
  • European-based companies expect increasingly to relocate their innovation capabilities from Europe & US to Asia & South America, doubling from 12% share in 2010 to 25% in 2020

Arthur D. Little has produced a report based on these and other findings entitled “The Future of Innovation Management: The Next 10 Years”, which is available for download at

www.adl.com/InnovationManagement Rick Eagar, Head of the UK Technology and Innovation Management Practice at Arthur D. Little, and one of the authors of the report, comments, “We predict that businesses will increasingly need to focus on radical innovation in order to stay ahead of the pack.  For example, CTOs expect the proportion of innovative new products in adjacent and new business areas to be double that of the last decade. Such an increase would have fundamental consequences for the nature of innovation management, with companies operating more in untested markets and exposed to greater risk. The accelerating pace of transfer of innovation resources to the developing economies also poses significant global management challenges.” 1Survey of 83 Chief Technology Officers and Chief Innovation Officers across Europe, US and Asia

 

2 min read •

Focus on new business areas to dramatically increase in next ten years, reveals global innovation survey from Arthur D. Little

<p>Understanding what customers want remains top innovation management priority</p>

DATE

November 2011

Arthur D. Little has conducted a global survey of CIOs and CTOs1 to gauge their views on emerging trends over the next ten years in the area of innovation management.  Key findings are listed in this piece:

  • Share of products/services in new business areas expected to double from 20% in 2010 to 40% in 2020
  • Share of revenue generated from new products/services expected to increase from 30% in 2010 to 40% in 2020
  • Unit cost reductions achieved through innovation expected to increase by 50% in the next ten years
  • The most important area for innovation investment will continue to be gaining a deeper understanding of the customer
  • Integrating innovation across functions,  and innovating in and for emerging markets are also set for significant investment increases in the next ten years
  • European-based companies expect increasingly to relocate their innovation capabilities from Europe & US to Asia & South America, doubling from 12% share in 2010 to 25% in 2020

Arthur D. Little has produced a report based on these and other findings entitled “The Future of Innovation Management: The Next 10 Years”, which is available for download at

www.adl.com/InnovationManagement Rick Eagar, Head of the UK Technology and Innovation Management Practice at Arthur D. Little, and one of the authors of the report, comments, “We predict that businesses will increasingly need to focus on radical innovation in order to stay ahead of the pack.  For example, CTOs expect the proportion of innovative new products in adjacent and new business areas to be double that of the last decade. Such an increase would have fundamental consequences for the nature of innovation management, with companies operating more in untested markets and exposed to greater risk. The accelerating pace of transfer of innovation resources to the developing economies also poses significant global management challenges.” 1Survey of 83 Chief Technology Officers and Chief Innovation Officers across Europe, US and Asia