Innovation happens randomly. It’s unpredictable. This is a problem if your company has an obligation to its stockholders to grow. Chances are less than 1% that your company has achieved a modest 5 percent growth rate each year for the last 10 years. The reason? Your company needs to improve its innovation management process. Our innovation management consulting team has been assembled to help you address this challenge.
To grow predictably, your company must excel at two types of innovation: product improvement and new product creation. In most companies, product improvement success rates are over 50 percent: this is not the problem. The real problem arises when your company can’t grow its existing markets fast enough to achieve its revenue targets and must rely on new product creation for growth. This is a problem because over 95 percent of new products fail.
There are two prerequisites for success in managing innovation: (1) your company must have a team that is devoted solely to new product creation, and (2) that team must have access to an innovation process that results in effective new product creation decisions.
Regarding the first prerequisite: with our experience in helping dozens of firms create successful programs, our innovation management consulting team can help you figure out exactly how your organization should be structured and staffed, and define its roles and responsibilities. This team is often comprised of just a handful of people, yet the decisions they make will ultimately determine your company’s long-term success.
Now for the second prerequisite: your growth team needs an innovation process that will enable it to make effective decisions. Here again, our innovation management consulting services are unsurpassed. Over the past 23 years, Strategyn has transformed jobs-to-be-done theory into an effective strategy and innovation process that enables predictable innovation management. It is called Outcome-Driven Innovation (ODI). With 11 patents issued, we have quite literally reinvented innovation management.
Using ODI and our innovation management consulting team, we can help your growth team effectively answer three key questions:
- When is the right time to replace an existing product with a new one?
- What new markets should you enter?
- What new products do customers want that will generate the needed revenue growth?
If your company has a 5 percent new product creation success rate, it must invest in 20 new products, each having the potential to grow revenue by $1 billion, in order to predictably generate an additional $1 billion in revenue. If your company had a 50 percent success rate, by comparison, it would only have to invest in two. The economic and business advantages of getting innovation management right are extraordinary. With ODI’s 86 percent success rate, these goals are best accomplished with Strategyn’s help. Contact us to learn more about our innovation management consulting services.