Many face similar challenges in the areas of innovation and product development, such as:
- Changing product requirements: Mature markets are saturated and faster-paced, while emerging markets are rising in importance – forcing companies to focus on differentiated solutions customized to local markets, with more products overall and faster cycles. The increasing role of electronics and software is also adding complexity to the development process.
- Cost pressures: Budget tightening has become the norm, thus developers must focus on designing “more with less” and “get it right” the first time.
- Drive for results: Increasingly, global R&D footprints are making coordination more difficult, but nevertheless essential for meeting CEO demands that R&D show investment returns.
The solution to meeting these challenges lies not in attempting to get more out of the same old R&D process, but in moving to a “next generation” R&D approach. Oliver Wyman recently benchmarked innovation leaders and found a common set of nine approaches to revolutionizing R&D.