Today due to increasing competition and accelerated products and service development cycles, innovation factor is now taking the driver seat and playing crucial role in any corporate success. As per the research conducted by Forbes ,Ernst & Young and the Wharton School of Business have found innovation to be the important value of any corporate either durable or non-durable companies. In fact results also show that half of the profit of most of the Giant companies of world comes from products launched in last 10 years.
So now, main concern of any company’s management strategy is to encourage innovation through different channel of their company and especially from R&D. The best way that companies have found is to establish policies that support innovative process. So much so that, many companies have included the innovation in their mission statement. Some of the mission statement are following:
Gillette: “We will invest in and master the key technologies vital to category success.”
Intel: “To succeed we must maintain our innovative environment. We strive to embrace change, challenge the status quo, listen to all ideas and viewpoints, encourage and reward informed risk taking, and learn from our success and mistakes.”
Hallmark: “ We believe that creativity and quality – in our concept, products and services—are essential to our success.”
AT&T: “We believe innovation is the engine that will keep us vital and growing. Our culture embraces creatively, seeks different perspectives and risks pursuing new opportunities. We create and rapidly convert technology into products and services, constantly searching for new ways to make technology more useful to customers.”
It is necessary that emphasis on innovation should be given by the people at top of the m management and process ought to be smooth to get it reinforced throughout the company/corporation.
Besides that, management should not only encourage new product development but also need to ensure that innovation is taking shape with the consumer in mind. Because 33% to 60% of all new product that reach market is not able to satisfy consumer ,thus fail to make profit, Such drastic result are quite obvious in FMCG markets and one can easily sense it . For example any new type of packaging and flavor make the same edible popular among consumer and the same time failure in some other edibles.
So for any Corporation/company/firm success is very much dependent upon their innovative strategy in producing their product and services.
