Changing Perceptions About Innovation
Perceptions regarding who is primarily responsible for innovation have expanded from the confines of the laboratory to include all employees of a company, according to a study of a cross-section of managers and professionals in manufacturing companies in the Americas, Asia and Europe.More than a third of respondents (37 percent) said they are counting on all employees, not just the head of science and technology, to advance innovation in their companies. Twenty-three percent of respondents felt that innovation is the responsibility of the chief technology officer.The global study was conducted by Harris Interactive Inc., on behalf of Dow Corning Corp., Midland, Mich. The study involved a telephone survey of executives from a wide range of industries, including electronics, construction, beauty and personal care, automotive, textiles, rubber, plastics, paper, and health care. Reversing the processââŹĹThe results show a trend away from the traditional ââŹËinside-outââŹâ˘ approach to innovation, which involves creating a new product or solution and then looking for a way to sell it,ââŹÂ says Scott Fuson, global executive director for marketing, sales and customer service at Dow Corning. ââŹĹRespondents now are turning to an ââŹËoutside-inââŹâ˘ perspective of monitoring the external environment, market needs and customer expectations and then creating products, services and solutions to address those needs.ââŹÂRespondentsââŹâ˘ ranking of factors that make a supplier a successful innovator reinforce this perception. The top-ranked factor was having an ââŹĹintimate understanding of what customers want and need.ââŹÂ This response scored 8.9 out of a possible 10 score, where 10 means ââŹĹextremely importantââŹÂ and 0 means ââŹĹnot at all important.ââŹÂ The second highest response was ââŹĹemployees are creativeââŹÂ which scored 8.6, and third was ââŹĹapply the latest developments in science and technologyââŹÂ at 8.5. ââŹĹTraditionally, company leaders felt that advancements in science and technology were primarily and almost solely responsible for innovation,ââŹÂ adds Gregg Zank, chief technology officer and executive director of science and technology. ââŹĹThis result shows that respondents appreciate the significance of understanding customer needs first and foremost.ââŹÂBiggest challenge?When identifying ââŹĹthe single biggest challenge facing your business today,ââŹÂ 36 percent of global respondents indicated their top-ranked challenge is ââŹĹlower-cost competitors.ââŹÂ Other challenges identified in the global results, in order of priority, were ââŹĹnew market developmentââŹÂ at 19 percent, ââŹĹinnovationââŹÂ at 16 percent, and ââŹĹrising energy costsââŹÂ at 13 percent.Regional results showed marked variations. The challenge of lower-cost competitors is perceived as being more critical in Asia (36 percent), compared to 29 percent in the Americas and 29 percent in Europe respectively.Thirty-two percent of respondents in Europe feel that innovation is by far the single biggest challenge facing their businesses today. Only 10 percent of respondents in the Americas and Asia named innovation as their top challenge.ââŹĹThis mirrors feedback from the European Commission-sponsored Innovation Scorecard that tracks innovation progress in Europe,ââŹÂ Zank says. ââŹĹCommission officials have noted that innovation is critical to boosting growth rates and productivity in Europe.ââŹÂDow Corning, which is equally owned by The Dow Chemical Co. and Corning Inc., describes itself as ââŹĹa global leader in silicon-based technology and innovation, offering more than 7,000 products and services.ââŹÂDow Corning Corp.www.dowcorning.com
