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growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                      2012...
growth team m e m b e r s h i p™                                                                                       201...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                        2012 survey results               ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                 2012 surv...
growth team m e m b e r s h i p™                                                        2012 survey results               ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                        2012 survey results               ...
growth team m e m b e r s h i p™                                                                                   2012 su...
growth team m e m b e r s h i p™                                                                                    2012 s...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                   2012 su...
growth team m e m b e r s h i p™                                                                               2012 survey...
growth team m e m b e r s h i p™                                                        2012 survey results               ...
growth team m e m b e r s h i p™                                                                                          ...
growth team m e m b e r s h i p™                                                                                       201...
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Idea Generation and Portfolio Management - 2012 R&D Innovation and Production Development Priorities Survey Results

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Results from the global 2012 R&D/innovation and product development priorities survey about idea generation and portfolio management.

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Idea Generation and Portfolio Management - 2012 R&D Innovation and Production Development Priorities Survey Results

  1. 1. growth team m e m b e r s h i p™ 1 global Idea Generation and Portfolio Management 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.
  2. 2. 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 . . . . . . . . . . . . . . 11 SECTION 3 Special Interest Topic: Open Innovation . . . . . . . . . . . . . . . . . . . . . . . . . 17 SECTION 4 Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
  3. 3. 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 Resource Allocation R&D typically has an annual budget of Budgets and staffing levels will increase More resources are being allocated to $20 million or more moderately short‑term, incremental innovation projects SECTION 3: Open Innovation (OI) OI Team Key OI Challenge External OI Sources Majority of companies have some form of Creating an effective open innovation Customers are the primary source of OI ideas OI team collaboration frameworkThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  4. 4. growth team m e m b e r s h i p™ 2012 survey results Introduction 4 Survey Purpose and Respondents 353 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 globallyThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  5. 5. 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.
  6. 6. 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.
  7. 7. 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.
  8. 8. 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 (14%) Challenge 3 Identifying breakthrough new product ideas (13%) Allocating portfolio spend across short-, medium-, and long- term Challenge 4 projects (9%) Measuring the success rate of your innovation projects and portfolio Challenge 5 (10%) 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.
  9. 9. growth team m e m b e r s h i p™ 2012 survey results Section 1 9 R&D’s top challenges are largely the same across business models Top Five R&D/Innovation and Product Development Challenges (By Business Model) B-to-B B-to-C Generating an accurate and relevant technology Generating an accurate and relevant technology Challenge 1 roadmap (17%) roadmap (16%) Challenge 2 Prioritizing innovation ideas and projects (15%) Prioritizing innovation ideas and projects (14%) Identifying breakthrough new product ideas Maximizing portfolio value while mitigating Challenge 3 (14%) portfolio risk (11%) Allocating portfolio spend across short-, Embedding the voice of the customer into the Challenge 4 medium-, and long- term projects (11%) innovation process (11%) Measuring the success rate of your innovation Measuring the success rate of your innovation Challenge 5 projects and portfolio (9%) projects and portfolio (10%) 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.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  10. 10. growth team m e m b e r s h i p™ 2012 survey results Section 1 10 R&D’s challenges are attributed to understaffing and ineffective or nonexistent processes 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 (29%) technology roadmap Challenge 2 Prioritizing innovation ideas and projects Staff: Limited resources (45%) Identifying breakthrough new product Challenge 3 Staff: Limited resources (23%) ideas Allocating portfolio spend across short-, Strategic Alignment: Lack of common Challenge 4 medium-, and long- term projects objectives (26%) Measuring the success rate of your Process: Lack of process (42%) Challenge 5 innovation projects and portfolio Process: Ineffective process (42%) 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.
  11. 11. growth team m e m b e r s h i p™ 2012 survey results 11 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.
  12. 12. growth team m e m b e r s h i p™ 2012 survey results Section 2 12 Most R&D/innovation budgets are over $20 million 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 33% product development budgets. 31% F 30% 29% 25% 21% The red percentages are F for all respondents. 20% 16% 15% 13% 13% 13% F 10% 11% 10% 10% 11% 10% F F 9% F 7% 5% 7% 5% 5% F 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 All Companies B-to-B Companies B-to-C Companies SURVEY QUESTION: hich of the above ranges (in $USD) best describes your 2012 total RD/innovation and product development budget (all expenditures W on RD/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.
  13. 13. growth team m e m b e r s h i p™ 2012 survey results Section 2 13 RD executives are increasing budget allocations to short- and medium-term innovation projects in 2012 Change in Portfolio Allocations (By Business Model) 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 57% 45% 25% 28% All STAY THECompanies SAME 30% 40% 46% 48% DECREASE 13% 15% 29% 24% INCREASE 56% 44% 22% 28% B-to-B STAY THECompanies SAME 31% 45% 55% 54% DECREASE 13% 11% 23% 18% INCREASE 58% 48% 31% 28% B-to-C STAY THECompanies SAME 29% 32% 36% 41% DECREASE 13% 20% 33% 31% SURVEY QUESTION: In comparison to 2011, your 2012 RD/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.
  14. 14. growth team m e m b e r s h i p™ 2012 survey results Section 2 14 RD executives foresee additional staff in 2012 RD/Innovation and Product Development Staffing Changes (By Business Model) All Companies B-to-B Companies Decrease Substantially 3% Decrease Substantially Increase Substantially Increase Substantially Decrease Moderately Decrease Moderately 6% 4% 6% 13% 9% 40% Increase Moderately 40% Increase Moderately 38% 41% Stay the Same Stay the Same B-to-C Companies Decrease Substantially 1% Increase Substantially Decrease Moderately 6% 18% 44% Increase Moderately 31% Stay the Same SURVEY QUESTION: In comparison to 2011, your 2012 RD/innovation and product development staffing will…The contents of these pages are copyright © 2012 Frost Sullivan. All rights reserved. Growth Team Membership™ research.
  15. 15. growth team m e m b e r s h i p™ 2012 survey results Section 2 15 RD/innovation budgets are expected to increase in 2012 RD/Innovation and Product Development Budget Changes (By Business Model) All Companies B-to-B Companies Decrease Substantially 3% Increase Substantially Decrease Substantially 2% Increase Substantially Decrease Moderately Decrease Moderately 5% 7% 9% 11% Stay the Same 29% 32% Stay the Same 47% Increase Moderately 55% Increase Moderately B-to-C Companies Decrease Substantially 2% Increase Substantially Decrease Moderately 11% 16% 39% 32% Increase Moderately Stay the Same SURVEY QUESTION: In comparison to 2011, your 2012 RD/innovation and product development budget will…The contents of these pages are copyright © 2012 Frost Sullivan. All rights reserved. Growth Team Membership™ research.
  16. 16. growth team m e m b e r s h i p™ 2012 survey results Section 2 16 Most respondents rate their RD functions as “Above Average” RD/Innovation and Product Development Effectiveness (By Business Model) All Companies B-to-B Companies Poor Exceptional 3% 2% Exceptional Below Average Below Average 4% 11% 12% Above Average 42% Above Average 45% 38% 43% Average Average B-to-C Companies Poor Exceptional 1% 2% Below Average 13% Above Average 51% 33% 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.
  17. 17. growth team m e m b e r s h i p™ 2012 survey results 17 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.
  18. 18. growth team m e m b e r s h i p™ 2012 survey results Section 3 18 Respondents in B-to-B companies are more likely to have a dedicated OI team within RD than their B-to-C peers OI Teams Within RD (By Business Model) All Companies B-to-B Companies B-to-C Companies 56% 53% 60% Yes Yes Yes OI Team Structure OI Team Structure OI Team Structure Sub-group within RD/product Sub-group within RD/product Part-time technology scout(s) within RD/ development (34%) development (37%) product development (35%) SURVEY QUESTION: o you have staff dedicated to open innovation? If so, which of the above best describes your open innovation team structure? DThe contents of these pages are copyright © 2012 Frost Sullivan. All rights reserved. Growth Team Membership™ research.
  19. 19. growth team m e m b e r s h i p™ 2012 survey results Section 3 19 Companies tend to have a small number of staff assigned to open innovation (OI) Number of OI Staff (By Business Model) 6 This graph represents the median value for the number of OI staff. 4 Number of 3 3 3 OI Staff 0 All Companies B-to-B Companies B-to-C Companies 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.
  20. 20. growth team m e m b e r s h i p™ 2012 survey results Section 3 20 RD executives struggle to secure buy-in and develop a framework for open innovation Top Five Open Innovation Challenges (By Business Model) All Companies B-to-B Companies B-to-C Companies Creating an effective open innovation Creating an effective open innovation Creating an effective open innovation collaboration framework (20%) collaboration framework (17%) collaboration framework (24%) Assessing the viability of a potential partner (12%) Fostering trust between your employees Establishing buy-in internally for open Establishing buy-in internally for open and strategic partners (13%) innovation (12%) innovation (12%) Overcoming the fear of lost IP and Assessing the viability of a potential Overcoming the fear of lost IP and competitive advantage (12%) partner (13%) competitive advantage (14%) Creating a shared understanding of the Creating a shared understanding of the challenge(s) to be addressed through open innovation (15%) Developing a process to assess challenge(s) to be addressed through innovation concepts’ feasibility (20%) open innovation (16%) Creating mutually agreed-upon key performance indicators (15%) Garnering the internal resources needed Garnering the internal resources needed Developing a process to assess to test innovation concepts’ feasibility to test innovation concepts’ feasibility innovation concepts’ feasibility (15%) (17%) (26%) 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.
  21. 21. growth team m e m b e r s h i p™ 2012 survey results Section 3 21 Open innovation is primarily used to generate new ideas Use OI in the Product Development Cycle (By Business Model) Concept testing Idea generation Idea screening Product launch and development All 33% 24% 25% 5% Companies B-to-B 35% 25% 23% 6% Companies B-to-C 37% 28% 34% 6% Companies SURVEY QUESTION: During which stage(s) of the product development process does your company use open innovation (check all that apply)?The contents of these pages are copyright © 2012 Frost Sullivan. All rights reserved. Growth Team Membership™ research.
  22. 22. growth team m e m b e r s h i p™ 2012 survey results Section 3 22 Customers are the primary source of open innovation submissions Top Three OI Sources (By Business Model) All Companies B-to-B Companies B-to-C Companies Customers (40%) Customers (47%) Customers (34%) Adjacent businesses (24%) Adjacent businesses (27%) Academia (24%) Academia (25%) Suppliers (16%) Adjacent businesses (16%) 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.
  23. 23. growth team m e m b e r s h i p™ 2012 survey results 23 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.
  24. 24. growth team m e m b e r s h i p™ 2012 survey results Section 4 24 Respondent Demographics Enterprise Type Business Model Not for Profit Government/Public Sector 3% The majority of the B-to-C Venture Capital Company respondents come from 6% 6% (Indirect) B-to-B companies. Hybrid 3% Public 25% 40% 14% 61% B-to-B B-to-C 42% Company Company (Direct) PrivateMost of the respondents N = 316 N = 308work in privately heldcompanies. Company Revenue 50% 32% 25% 25% 20% 16% 7% 0% N = 303 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.
  25. 25. growth team m e m b e r s h i p™ 2012 survey results Section 4 25 Respondent Demographics: Region and Top Five Participating Industries Region Industries Middle East 3% 3% Africa Information and Communication 18% Europe Technologies 27% Energy and Power 19% 46% Americas Systems 21% Aerospace and 20% Defence Asia Pacific Chemicals, Materials, 24% N = 313 and Food Healthcare and Life 26% Sciences 0% 15% 30% N = 313 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.

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