Arthur D. LittleArthur D. Little

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Transformation by Radical Innovation

Transformation by Radical Innovation

Turning Megatrends and Emerging Technologies into Growth Opportunities

Is your company sufficiently innovative? Most CEOs and CTOs would like to say yes, although Arthur D. Little’s recent Global Innovation Excellence study reveals that most companies are focusing on incremental, rather than radical, innovation. The most successful innovators in the study, in terms of EBIT and sales from new products, spend as much as one third of total R&D resources on radical innovation activities.

“The most successful companies spend 1/3 of their R&D budget on radical innovation”

While in the past, successful companies prospered by focusing on incremental innovation, tweaking existing products and processes, today they face difficulties competing with start-ups and younger companies with game-changing offerings. While new entrants usually benefit from lean and flexible organizations suited to the culture and processes needed for radical innovation, previously successful incumbents struggle to adapt their bigger and more cumbersome organizations. In this article, Arthur D. Little shares its perspective on how larger companies can become “radical innovators” by focusing on three critical key success factors.

Released: February 2014

Download File TIM_2014_Transformation_by_Radical_Innovation.pdf (.PDF, 895 Kb)

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