2011 Europe R&D Innovation and Product Development Priorities Survey Results

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2011 Europe R&D Innovation and Product Development Priorities Survey Results, in association with AIPMM.

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2011 Europe R&D Innovation and Product Development Priorities Survey Results

  1. 1. growth team m e m b e r s h i p™ 1Europe 2011 R&D/Innovation and Product Development Priorities Survey Results Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . 2 Section R&D/Innovation and Product Development What is the Growth Team Membership™ . . . . . . 3 3 intro Effectiveness and Expenditures . . . . . . . . . . . . . . 12 Survey Purpose and Respondents . . . . . . . . . . . . . 4 Section Section Open Innovation and Crowdsourcing . . . . . . . . . .17 External Factors Shaping R&D/Innovation 1 and Product Development Strategies . . . . . . . . . . 5 4 R&D/Innovation and Product Development Overarching Challenges . . . . . . . . 22 Section Section Key R&D/Innovation and Product 2 Development Challenges . . . . . . . . . . . . . . . . . . . . 8 5 Respondent Demographics . . . . . . . . . . . . . . . . . 23 in cooperation with www .aipmm .comThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
  2. 2. growth team m e m b e r s h i p™ 2011 survey results 2 Executive Summary Main External Challenge The primary factor influencing R&D planning is the need for new products and services intro Key Internal Challenge Internal Challenge Root Cause Section The challenge is prioritising innovation ideas and projects The challenge’s root cause is limited staff 1 Section 2 R&D Budget Resources Section On average, companies allocate 5% of their revenue R&D/Innovation budgets are expected to increase to R&D/Innovation budgets moderately, yet staffing will remain static in 2011 3 Section 4 Open Innovation Challenge The challenge is creating a collaborative framework Crowdsourcing and Innovation Respondents primarily use crowdsourcing for ideation Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  3. 3. growth team m e m b e r s h i p™ 2011 survey results 3 What is the Growth Team Membership™? The Growth Team Membership™ (GTM) is a GTM provides best practices, events, and services to subscription program that supports executives within enable executives to address internal challenges within the functions reporting to the CEO their companies CEO’s Growth Team™ GTM: Creating Client Value R&D/ GTM’s case-based best practices help executives: R&D/ intro Innovation Innovation Corporate Sales Strategy Leadership Section Speed the design and implementation of initiatives by 1 not reinventing the wheel Section Marketing CEO Corporate Development Save money and reduce risk by avoiding mistakes 2 made by other companies Investors/ Market Finance Research Accelerate problem solving with a cross-industry Section perspective 3 Competitive Intelligence Improve their function/company’s performance and Section productivity 4 If you have any questions or comments, please contact us Section 5 Email us GTMresearch@frost.com Visit us online www.gtm.frost.comThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  4. 4. growth team m e m b e r s h i p™ 2011 survey results 4 Survey Purpose and Respondents Research Objective Methodology Survey Population In Cooperation with To understand the most Web-based survey platform Target respondents were pressing external and internal Manager level and above challenges shaping R&D/Innovation and product R&D/Innovation and product development executives from development executives’ 2011 companies throughout Europe . planning . intro Section 1 Section 2 Section 84 3 survey respondents Section 4 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  5. 5. growth team m e m b e r s h i p™ 2011 survey results 5 intro Section External Factors Shaping R&D/Innovation and 1 Product Development Strategies Section 2 Section 3 Section 4 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  6. 6. growth team m e m b e r s h i p™ 2011 survey results 6 Strategic planning for R&D is being shaped by demands for new products and renewed access to capital Top Three External Factors External Factor 1 Need for product and services innovation (33%) intro Section 1 External Factor 2 Access to capital/capital markets (15%) Section 2 Section 3 Demand for “green/sustainable” products and Section External Factor 3 services (19%) 4 Section 5 Survey Question: Please specify the Top Three external factors shaping your R&D/Innovation and product development strategy in 2011 .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  7. 7. growth team m e m b e r s h i p™ 2011 survey results 7 External Factors Impact on R&D/Innovation and Product Development intro Opportunities for R&D/Innovation and Product Development Section 1 Need for product and services innovation (69%) Section 2 Access to capital/capital markets (73%) Section 3 Demand for “green/ sustainable” products and services (73%) Section 4 Section 5 Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 R&D/Innovation and product development strategy .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  8. 8. growth team m e m b e r s h i p™ 2011 survey results 8 intro Section 1 Section 2 Key R&D/Innovation and Product Development Challenges Section 3 Section 4 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  9. 9. growth team m e m b e r s h i p™ 2011 survey results 9 Key R&D/Innovation and Product Development Challenges Snapshot Prioritising innovation ideas and projects Challenge 1 intro Section 1 Matching innovation projects to unmet customers needs Section 2 Challenge 2 Section 3 Section Identifying breakthrough new product ideas 4 Section Challenge 3 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  10. 10. growth team m e m b e r s h i p™ 2011 survey results 10 Respondents emphasise challenges with improving innovation projects and integrating inputs from internal and external sources Top Five Key R&D/Innovation and Product Development Challenges Challenge 1 Prioritising innovation ideas and projects (20%) intro Challenge 2 Matching innovation projects to unmet customers needs (9%) Section 1 Section Challenge 3 Identifying breakthrough new product ideas (19%) 2 Section 3 Integrating inputs from cross-functional partners [Sales, Challenge 4 Manufacturing, Marketing, etc .] (13%) Section 4 Challenge 5 Managing an open innovation process successfully (13%) Section 5 Survey Question: Please indicate the top five functional challenges shaping your R&D/Innovation and product development strategy in 2011 .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  11. 11. growth team m e m b e r s h i p™ 2011 survey results 11 Respondents cite understaffing as the predominant cause of their challenges Top Five R&D/Innovation and Product Root Cause of Top Five R&D/Innovation and Development Challenges Product Development Challenges Challenge 1 Prioritising innovation ideas and Staff: Limited resources (54%) projects intro Challenge 2 Matching innovation projects to unmet Process: Ineffective process (40%) Section customers needs 1 Challenge 3 Identifying breakthrough new product Staff: Limited resources (25%) Section ideas 2 Challenge 4 Integrating inputs from cross-functional Strategic Alignment: Lack of Section partners (Sales, Manufacturing, Marketing, team buy-in (43%) 3 etc .) Section Challenge 5 Managing an open innovation process Staff: Limited resources (43%) 4 successfully Section 5 Survey Question: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  12. 12. growth team m e m b e r s h i p™ 2011 survey results 12 intro Section 1 Section 2 Section R&D/Innovation and Product Development 3 Effectiveness and Expenditures Section 4 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  13. 13. growth team m e m b e r s h i p™ 2011 survey results 13 R&D/Innovation and Product Development Expenditures and Effectiveness Snapshot Respondents rank their R&D/Innovation function’s effectiveness as “Average” or “Above Average” intro In general, companies allocate 5% of their revenue to the R&D budget Section 1 Section 2 Respondents expect their staffing levels to stay the same in 2011 Section 3 Section Respondents expect their R&D/Innovation budgets 4 to increase moderately in 2011 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  14. 14. growth team m e m b e r s h i p™ 2011 survey results 14 Respondents are likely to rank their function’s effectiveness as “Above Average” or “Average” R&D/Innovation and Product Development’s View of Its Effectiveness Exceptional Below Average 10% 8% intro Section 1 Above Average 41% 41% Average Section 2 Section 3 Section 4 Section 5 Survey Question: Please assess the overall effectiveness of your R&D/Innovation and product development function compared to those in other firms within your industry .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  15. 15. growth team m e m b e r s h i p™ 2011 survey results 15 Companies tend to allocate 5% of their revenue to R&D budgets 2010 R&D/Innovation and Product Development Budgets as a Percent of Revenue 60% 50% 5% is the median percentage intro of company revenue allocated to R&D budgets . Section 1 30% 26% Section 2 14% Section 6% 3 4% 0% Section 1 to 5% 6 to 10% 11 to 30% 31 to 50% 51% and Above 4 Section 5 Survey Question: Please provide your 2010 total R&D/innovation and product development budget as a percentage of total company revenue:The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  16. 16. growth team m e m b e r s h i p™ 2011 survey results 16 Respondents expect budgets to increase moderately, yet staffing will remain static in 2011 R&D/Innovation and Product Development Staffing and Budgets 2011 Staffing Decrease Moderately Increase Substantially 11% 12% intro 41% 36% Stay the Same Increase Moderately Section 1 Section 2 Budget Decrease Substantially 1% Section Decrease Moderately Increase Substantially 3 10% 11% Section Stay the Same 23% 4 55% Section Increase Moderately 5 Survey Question: In comparison to 2010, your 2011 R&D/Innovation and product development staffing and budgets will:The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  17. 17. growth team m e m b e r s h i p™ 2011 survey results 17 intro Section 1 Section 2 Section 3 Section 4 Open Innovation and Crowdsourcing Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  18. 18. growth team m e m b e r s h i p™ 2011 survey results 18 Open Innovation and Crowdsourcing Snapshot Primary Open Innovation challenge is creating a collaborative framework intro Section 1 Section 2 For crowdsourcing, companies usually employ specialised vendors such as Six Sigma Section 3 Section 4 Section 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  19. 19. growth team m e m b e r s h i p™ 2011 survey results 19 Challenges with using Open Innovation are wide ranging from trust concerns to securing buy-in to initiate a programme Top Four Challenges of Open Innovation Challenge 1 Creating an effective Open Innovation collaboration framework (30%) intro Section 1 Challenge 2 Generating a sustainable level of trust among strategic partners (28%) Section 2 Challenge 3 Establishing buy-in internally for Open Innovation (18%) Section 3 Creating a shared understanding of the problem to be addressed Challenge 4 through Open Innovation (29%) Section 4 Section 5 Survey Question: Please rank the following Open Innovation challenges in order of importance .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  20. 20. growth team m e m b e r s h i p™ 2011 survey results 20 Crowdsourcing tends to be mostly employed for initial idea development and concept testing Crowdsourcing in Innovation Lifecycle 45% 39% intro 31% 30% Section 1 21% Section 2 15% Section 8% 3 0% Section Idea Generation Idea Screening Concept Testing Product Launch 4 and Development Section 5 Survey Question: Please indicate if your company uses crowdsourcing in the following product/service development activities (click all that apply) .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  21. 21. growth team m e m b e r s h i p™ 2011 survey results 21 Respondent tend to use specialised vendors for their crowdsourcing activities Crowdsourcing Tactics 100% 89% intro Section 1 50% 45% Section 38% 2 Section 3 11% 4% Section 0% 4 Formal Networks Open Networks (e.g. Six Sigma) Customer/Consumer Surveys, Focus Groups, or Workshops Public Contests Social Media Section 5 Survey Question: Please indicate the types of Crowdsourcing your company uses in its product development process (click all that apply) .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  22. 22. growth team m e m b e r s h i p™ 2011 survey results 22 what’s keeping r&d/innovation and product development executives up at night in 2011? The Top Overarching Challenges Affecting R&D/Innovation and Product Development Executives Overarching Challenges Sample Solutions from the Growth Team Membership Assessing New Product Ideas intro Learn how our New Product Development toolkit Staffing limitations and increasing demand for new enables strategic analysis of all factors that could products and services require R&D/Innovation influence demand for new products/services and executives to develop a system to examine and examines operational and organisational potential Section prioritise ideas and projects based on their to support the development and launch of an 1 potential value . innovation concept . Section Voice of the Customer 2 R&D/Innovation executives have to develop products that address unmet customer needs . Learn how Tandberg used customer-segmentation to embed the voice of the customer in its innovation process . Section 3 Collaborative Innovation R&D/Innovation executives seek to use collaborative Learn how IBM implemented a collaborative Section innovation with external parties—particularly for innovation program to test early stage innovations 4 ideation and concept testing—yet struggle with implementing a collaborative innovation process . and speed the innovation commercialisation process . Section 5 The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  23. 23. growth team m e m b e r s h i p™ 2011 survey results 23 intro Section 1 Section 2 Section 3 Section 4 Section 5 Respondent DemographicsThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  24. 24. growth team m e m b e r s h i p™ 2011 survey results 24 Respondent Demographics Enterprise Type Business Model Venture Capital 5% Over half of the The majority of the Hybrid respondents work in respondents work in Public Company B-to-B companies . a private company . intro 33% 30% 60% Section 62% B-to-B 10% Company 1 B-to-C Private Company N = 82 N = 82 Section 2 40% Company Revenue 33% 32% Section 3 20% Section 13% 11% 4 8% Section 0% N = 81 Below €100 Million to €500 Million to €1 Billion to More than 5 €100 Million €499.99 Million €999.99 Million Survey Question: Please indicate the type of enterprise best represents your company . €11 Billion €11 BillionThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.
  25. 25. growth team m e m b e r s h i p™ 2011 survey results 25 Respondent Demographics: Top Six Participating Industries Information and Communication Technologies 14% Electronics and Security 14% intro Section Aerospace and Defence 14% 1 Section 18% Energy and Power Systems 2 Section Healthcare and Life Sciences 26% 3 Section Chemicals, Materials, and Food 32% 4 0% 20% 40% Section N = 84 5The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Source: Growth Team Membership™ research.

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