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Open Innovation for Idea Generation - 2012 R&D Innovation Priorities Survey Results
 

Open Innovation for Idea Generation - 2012 R&D Innovation Priorities Survey Results

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Results from the European 2012 R&D/innovation and product development priorities survey about open innovation for idea generation.

Results from the European 2012 R&D/innovation and product development priorities survey about open innovation for idea generation.

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    Open Innovation for Idea Generation - 2012 R&D Innovation Priorities Survey Results Open Innovation for Idea Generation - 2012 R&D Innovation Priorities Survey Results Presentation Transcript

    • growth team m e m b e r s h i p™ 1 europe Open Innovation for Idea Generation 2012 r & d /innovation and product development priorities survey results TWEET ABOUT THE SURVEYS #2012priorities Co-SponsorThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
    • growth team m e m b e r s h i p™ 2012 survey results 2 CONTENTS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 INTRO Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . .5 R&D/Innovation and Product Development Overarching Challenges . . . . . . . . . . .6 SECTION 1 Key R&D/Innovation and Product Development Challenges . . . . . . . . . . . . . . . .7 SECTION 2 R&D/Innovation and Product Development Resource Trends . . . . . . . . . . . . . . 10 SECTION 3 Special Interest Topic: Open Innovation . . . . . . . . . . . . . . . . . . . . . . . . . 15 SECTION 4 Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
    • growth team m e m b e r s h i p™ 2012 survey results Introduction 3 R&D/Innovation and Product Development Executive Summary SECTION 1: Key R&D/Innovation and Product Development Challenges Key Internal Challenge Key Internal Challenge Root Cause Generating an accurate and relevant technology roadmap Insufficient personnel SECTION 2: R&D/Innovation and Product Development Resource Trends Budgets Resources Portfolio Allocation R&D typically has an annual budget of Budgets are expected to increase moderately, More resources are being allocated to short- $20 million or more but staffing levels will stay the same and medium-term innovation projects SECTION 3: Open Innovation (OI) OI Team Key OI Challenge External OI Sources Majority of companies do not maintain an Measuring the impact of open innovation on Customers are the primary source of OI ideas OI team product development efforts as a wholeThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Introduction 4 Survey Purpose and Respondents 83 survey respondents Research Objective Methodology Survey Population Co-Sponsor To understand the most pressing Web-based survey platform Manager-level and above challenges shaping R&D/innovation R&D/innovation and product and product development development executives from executives’ 2012 planning companies throughout EuropeThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Introduction 5 What is the Growth Team Membership™? GTM is a subscription program that supports executives GTM provides best practices, events, and services that enable within the functions that report to the CEO executives to address challenges within their companies CEO’s Growth Team™ GTM: Creating Client Value R&D/ GTM’s case-based best practices help executives: R&D/ Innovation Innovation Corporate Sales Strategy Leadership Speed the design and implementation of initiatives by not reinventing the wheel Marketing CEO Corporate Development Save money and reduce risk by avoiding mistakes made by other companies Investors/ Market Finance Research Accelerate problem-solving with a cross‑industry perspective Competitive Intelligence Improve their functions’ and companies’ performance and productivity GTMresearch@frost.com www.gtm.frost.com twitter.com/Frost_GTM slideshare.net/FrostandSullivanThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Introduction 6 What’s Keeping R&D/Innovation and Product Development Executives Up at Night in 2012? R&D/Innovation and Product Development Overarching Challenges Sample Solutions from GTM Portfolio Management R&D/innovation executives need to develop Learn how ConvaTec developed a portfolio management process a methodology that allows them to prioritize that makes efficient use of cross-functional governing teams and innovation projects based on their economic value phase reviews. and role in the portfolio. Collaborative Innovation As open innovation continues to gain momentum, Learn how IBM’s executive briefing centres bring together R&D executives need to identify methods for customers, business partners, and IBM industry experts and collaborating with customers, adjacent businesses, and researchers to explore how leading-edge technologies can solve suppliers. pressing business challenges. Open Innovation and Partnerships As R&D executives apply open innovation to their Learn how our Strategic Partnerships toolkit helps you screen product development processes they often struggle and evaluate potential partners based on their degree of strategic to evaluate and establish trust with strategic partners. alignment and willingness to collaborate. Contact us at GTMResearch@frost.com.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results 7 INTRO SECTION 1 Key R&D/Innovation and Product Development Challenges SECTION 2 SECTION 3 SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 1 8 Top Five R&D/Innovation and Product Development Challenges Challenge 1 Generating an accurate and relevant technology roadmap (16%) Challenge 2 Prioritizing innovation ideas and projects (15%) Challenge 3 Identifying breakthrough new product ideas (13%) Streamlining research, design, and development activities to reduce Challenge 4 costs (10%) Challenge 5 Managing an open innovation process (15%) Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge. SURVEY QUESTION: What are the top five functional challenges shaping your R&D/innovation and product development strategy?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 1 9 R&D executives’ challenges are attributed to staff and process limitations Top Five R&D/Innovation and Root Cause of Top Five R&D/Innovation Product Development Challenges and Product Development Challenges Generating an accurate and relevant Challenge 1 Staff: Limited resources (50%) technology roadmap Challenge 2 Prioritizing innovation ideas and projects Staff: Limited resources (71%) Identifying breakthrough new Challenge 3 Staff: Inadequate skills (29%) product ideas Streamlining research, design, and Challenge 4 Process: Ineffective process (40%) development activities to reduce costs Challenge 5 Managing an open innovation process Process: Lack of process (29%) SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five R&D/innovation and product development challenges.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results 10 INTRO SECTION 1 SECTION 2 R&D/Innovation and Product Development Resource Trends SECTION 3 SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 2 11 Most R&D budgets tend to fall at extreme ends of the spectrum 2012 R&D/Innovation and Product Development Budgets (By Business Model) 40% percentage of company revenue allocated to r&d Companies dedicated approximately 5% of their 2011 revenue to their 2012 R&D/innovation and product development budgets. 31% 30% 25% 20% 14% 12% 10% 6% 6% 6% 0% Below $500,000 $500,000 to $1 Million to $3 Million to $5 Million to $10 Million to $20 Million $999,999 $2.99 Million $4.99 Million $9.99 Million $19.99 Million or more SURVEY QUESTION:  hich of the above ranges (in $USD) best describes your 2012 total R&D/innovation and product development budget (all expenditures W on R&D/innovation and product development activities and general & administrative—including staff)?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 2 12 There is little change in budget allocations to long-term and disruptive innovations Change in Portfolio Allocations Short-Term, Incremental Medium-Term Innovation Long-Term Innovation Disruptive Technologies Innovation (adoption in 2 to 4 years) (adoption in 4 to 10+ years) (adoption within 2 years) INCREASE 51% 49% 33% 27% STAY THE 41% SAME 35% 46% 52% DECREASE 14% 10% 21% 21% SURVEY QUESTION: In comparison to 2011, your 2012 R&D/innovation and product development budget for each of the above project categories will…The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 2 13 Although R&D executives foresee few changes in staffing levels, budgets will increase R&D/Innovation and Product Development Staffing and Budget Changes Staffing Budget Decrease Substantially Increase Substantially Decrease Substantially Increase Substantially Decrease Moderately 4% 4% Decrease Moderately 6% 6% 13% 11% Increase Moderately 31% 31% 50% Stay the Same Increase Moderately 44% Stay the Same SURVEY QUESTION: In comparison to 2011, your 2012 R&D/innovation and product development staffing and budget will…The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 2 14 Most R&D executives rank their functions’ effectiveness “Average” R&D/Innovation and Product Development Effectiveness Exceptional 2% Below Average 13% Above Average 40% 45% Average SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results 15 INTRO SECTION 1 SECTION 2 SECTION 3 Special Interest Topic: Open Innovation SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 3 16 Companies that have open innovation teams tend to employ part-time technology scouts OI Teams Within R&D OI Team Structure Yes Part-time technology scout(s) within R&D/ 42% product development (35%) SURVEY QUESTION:  o you have staff dedicated to open innovation? If so which of the above describes your open innovation team structure? D number of oi staff The majority of companies that employ open innovation have three dedicated OI staff members. This number is based on the median value for this question. SURVEY QUESTION: Approximately how many people in your company are assigned to open innovation?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 3 17 Respondents are focused on challenges associated with establishing partnerships and measuring ROI Top Five Open Innovation Challenges Measuring the impact of open innovation on product development efforts as a whole (17%) Assessing the viability of a potential partner (18%) Fostering trust between your employees and strategic partners (16%) Creating a shared understanding of the challenge(s) to be addressed through open innovation (20%) Finding partners with suitable intellectual property (IP) (18%) SURVEY QUESTION: Rank the above open innovation challenges in order of importance.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 3 18 Open innovation is used primarily for idea generation Use OI in the Product Development Cycle Concept testing Idea generation Idea screening Product launch and development 30% 25% 23% 8% SURVEY QUESTION: During which stage(s) of the product development process does your company use open innovation (check all that apply)? Top Three OI Sources Customers (53%) Academia (30%) Adjacent Business (21%) SURVEY QUESTION: Please rank your top three sources of open innovation ideas.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results 19 INTRO SECTION 1 SECTION 2 SECTION 3 SECTION 4 Respondent DemographicsThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 4 20 Respondent Demographics Enterprise Type Business Model Not for Profit 2% B-to-C Government/Public Sector Company The majority of Venture Capital (Indirect) respondents come from 6% 6% Public B-to-B companies. Hybrid 21% 6% 27% B-to-C Company 11% (Direct) 68% 53% B-to-B CompanyMost of the respondents N = 83 N = 82work in privately held Privatecompanies. Company Revenue 50% 33% 28% 25% 18% 13% 8% 0% N = 83 Below $100 Million to $500 Million to $1 Billion to More than $100 Million $499.99 Million $999.99 Million $11 Billion $11 Billion SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue that best represents your company.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ 2012 survey results Section 4 21 Respondent Demographics: Top Five Participating Industries Information and Communication Technologies 18% Healthcare and Life Sciences 22% Automotive and Transportation 23% Energy and Power Systems 23% Chemicals, Materials, and Food 40% 0% 20% 40% N = 83 SURVEY QUESTION: Please indicate which region you are located in and which industry categories best describe your company (check all that apply).The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.