Coordinating operations to enhance innovation in the global corporation

Abstract

op-performing global companies, much like their competitors, are banking on innovation to drive growth. But, unlike their competitors, they are investing in the product development capabilities, the supply chain process infrastructure, and the sophisticated information systems needed to support and synchronize innovation across the value chain. In stark contrast, most companies betting their future on their current innovation projects are not prioritizing investments in the supporting processes and infrastructure. Our research shows why this is a bad gamble.Over the last two years, we have studied the growth strategies and the supporting operations of nearly 650 companies around the world. From the executives participating in this research it is evident that for most companies today innovation is seen as the chief source of growth. Despite this expectation that innovation will drive corporate fortunes, our research also makes it clear that building or restructuring business operations to profitably bring new products and services to market is near the bottom of most companies' priorities.Our research shows this disparity between goals and infrastructure investment to hold true in just about every industry we have analyzed -for example, consumer products, automotive, chemicals, and process, pharmaceuticals, high technology and telecommunications equipment. However, overcoming this ''innovation contradiction'' is crucial to survival and success in increasingly complex global markets. The challenge becomes more formidable because companies continue to increase the complexity of their operations by globalizing sourcing, manufacturing, engineering, and marketing/sales operations. This growing complexity makes it ever more difficult to manage product lifecycles optimally.Of the nearly 650 companies from North America and Europe in our study, few have invested adequate resources in infrastructure to support innovation [1]. However, those making significant investment have generated far better business performance, with profit levels up to 70 percent higher than other groups of companies studied[2] (see Box 1). As we see from our research across leading companies -such as Mondi, Samsung Electronics, Porsche AG, and Rohm & Haas -a key factor to success in global markets is the ability to coordinate innovation across their global, complex operations.'' Of the nearly 650 companies from North America and Europe in our study . . . those making significant investment [in innovation infrastructure] have generated far better business performance, with profit levels up to 70 percent or higher compared to other groups of companies studied. ''

Developing communities of innovation by identifying innovation champions

“…The answer seems to lay in the concept of "right to market" (Koudal & Coleman, 2005). This means introducing the right products at the right time in the right markets with the right supply chain, and then continually updating, optimising, and retiring them as necessary.…”

Sustainable Innovation and Right to Market

“…CoInvs by their nature can build on this collective knowledge and transform it not only by applying it to known problems but also by discerning previously unknown problems and adding additional insights to this collective knowledge, and assist in solving the newly arisen issues and problems. Koudal and Coleman (2005) conclude that although innovation may be difficult at best, without it companies will eventually languish and fail. Allio (2005;p.…”

“…R2M is a concept that whilst originating from Koudal and Coleman (2005) in relation to the value chain operations of an organization, has been taken up by consultancies (The Leadership Alliance Inc., 2010) to apply to the general applicability of products and services to the marketplace and environment. Significantly, it is not a concept widely discussed in academic literature.…”

“…The rationale for this comes from the concept of innovation to achieve "right to market" (R2M) (Koudal & Coleman, 2005). R2M means introducing the right products at the right time in the right markets with the right supply chain, and then continually updating, optimising, and retiring them as necessary.…”

A introdução de novos produtos e o processo de difusão das inovações na estratégia das empresas: uma análise de bens duráveis.

“…Coleman, 2005). Entre as razões que são apontadas para o fracasso está o desconhecimento do mercado, da tecnologia, da infraestrutura interna, da tecnologia e do consumidor(Cooper, 2000; Cooper, Edgett Shortell, 1991;Hart, 1995;Hartley, 1998;Daft, 2002;Ringland, 2003;Hui, 2004; Xu e outros, 2004).…”