There has been a great deal of research into the efficacy of effective product innovation management. In 2005, Industry Week did a study about the effects of innovation on a company and they found that 74% of growth in revenue were a result of new products or innovation efforts. This coupled with the fact that “recent research studies confirm large failure rates in new product commercialization” has led many companies to turn to open innovation as a source of new revenue.
Innovation Breeds Success
Einstein once said, “If you always do, what you always did. You will always get what you always got.” Innovation is vital in today’s highly competitive corporate model. In a recent Bain study that surveyed 450 executives around the world with more than $100 million in revenue, two thirds of them agreed that product innovation is a top priority. Of those companies that were successful at innovation, most of them agreed that they consistently meet or exceeded their innovation goals. Product innovation management allows these goals to be realized by assigning their innovators a strategy and creating a portfolio that complements that strategy.
In a Nutshell
According to Tom Grant, a Senior Consultant at Cutter Consortium, “product innovation is innovation management.” This means that in order to harness effective product innovation management, it is crucial to balance innovation with adoption. While product innovation management always involves the introduction of a good or service that makes a significant improvement, this alone is not enough. A successful product manager takes the product one step further and builds a bridge between the engineers, technologists, and business users in order to guarantee that it has a long lifecycle.
IdeaScale’s solutions specialize in product innovation management, as we not only help organizations search for great new product ideas, but we also help refine those ideas from the point of inspiration into shovel-ready project plans that result in executive-level buy-in and bottom-line results.
For a great example of this, read our case study on how Scentsy used IdeaScale for product innovation management here.