There was a lively meeting of the Innovation Unit today when Philip Kyte and Greg Venters of Arthur D Little led a workshop on Innovating for Cash. They defined this as innovation that leads to quick wins by increasing short term revenues or by lowering operating costs. So for example you could boost revenue by bringing new products to market quicker or by selling residual IP. You could reduce cost by resource efficiencies, reallocating resources or more effective collaboration.
Delegates did a self-assessment to identify the impacts of the recession and what actions were being taken. We discussed where cuts in R&D might fall and how to improve R&D effectiveness and innovation. In summary some of the key actions that were recommended were:
- Alter your new product portfolio roadmap to reflect cost savings in R&D but with an emphasis on strengthening your strategic competitive position.
- Adapt the R&D footprint based on changes in relative strengths in your segments.
- Minimise time to market for key new products – possibly by eliminating some lower priority projects or by speeding decision making.
- Update your understanding of customer needs in the recession.
- Clean up the product portfolio and eliminate selected products but at the same time improve innovation processes and structures.
- Look for new combinations of products or services.
- Optimise partnerships.
There was an animated discussion and the mood was generally positive despite the fact that a majority of delegates thought that the recession could last into 2012 or beyond.
Many thanks to AD Little for facilitating the morning.
The next meeting will be on April 22nd and will be hosted by the Department for Industry Universities and Skills. More details will follow but put the date in your diary now.
Paul Sloane.
