Y



Prof. Rushen Chahal

ë



m

O { {

Research conducted by Forbes, Ernst & Young, Wharton Business School found that innovation is the most important driver of corporate value

a m

½ {

{

{

G a !

V a



aow to do things with perfect aow do you build replicability, at everorganizations that are as increasing scale and steadily nimble as change itself? increasing efficiency? aow do you get people to serve the organization¶s goals?

aow do you build organizations that merit the gifts of creativity and ion and initiative?

j

m

O " ! ! ! ! io Morita, Chairman of Sony Corporation

j

m

Management has obligation to not only encourage new product development, but also to develop a system to ensure that technology is being used most effectively with the consumer in mind. Between 33% and 60% of all new products that reach the mar et fail to ma e a profit.

m

ë " {

ë "

m

£ew developments in technology Motorola¶s intelligence department monitors the latest technology developments introduced at scientific conferences, journals and in trade gossip.



m

" to loo at customers, suppliers, and distributors, for source of product and service improvements. {

-#$ m m m m

-ay the foundation Determine the trends Identify lead s Develop the brea through

"

{

%

{

&$ ' !



" ( Y

Gaps are: {

{

{

£ew emerging customer segment or existing customer segments that other competitors have neglected £ew emerging customer needs or existing customer needs not served well by other competitors £ew ways of producing, delivering, or distributing existing or new products or services to existing or new customer segments

Environmental Scanning "

m

m

m

m

m

aas the company developed the resources needed to try new ideas? Do the managers allow experimentation with new products or services? Does the corporation ris ta ing and tolerate mista es? re people more concerned with new ideas or with defending their turf? Is it easy to form autonomous project teams?

Environmental Scanning ' m

j d company¶s spending on R&D as a percentage of sales revenue. For example, 11-13% of sales revenue are spent for R&D in computer software and drug industries.

m

issues is an important as 60% of patented innovations are generally imitated within 4 years at 65% of the cost of innovation.

j

Y m

½ O { { { { { {

- " " ) "



m

O ( {

! ! *

{

O



! ë

Y " "

m

½ * { { { { { { {

$ + *

½ * - * "

" " "

ë {

a ,+ ! When applying to 45 large electronics manufactures, only 9 companies scored 1.0 or higher, indicating that only 20% received a positive paybac from their R&D spending.

a {

˜

{

˜

%

{

˜

{

˜