Utilizing Inovation

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Utilizing Innovation and Strategic Research and Development to Catalyze Efficient and Effective New Product Development

Yair Holtzman

Director WTP Advisors, Business Advisory Services Practice Leader USA 1. Introduction

The ability to effectively innovate and develop new products is a vital core competency that any company must possess if it is going to be profitable and experience growth. At the same time, the innovation and effective new product development process is one of the most challenging to nurture and shepherd through to successful completion. It involves a combination of high risk and high return; mission critical importance; and immense scientific, engineering, and financial hurdles. But ultimately, the greatest paradox that surrounds successful new product development is the need for free, unfettered creativity to complement tremendous systematic discipline. There appear to be three key components to successful strategic innovation and research and development. First, strategic innovation and new product development rest on the effective and efficient use of resources to create clearly differentiated products that customers perceive as more valuable. Second, the process demands a seamless integration and alignment of research and development and new product development objectives and goals throughout the relevant departments of an organization. Third, research and development and new product development efforts should be strategic in nature. This suggests the development of new research and development capabilities, new relationships with customers or suppliers, and more efficient and effective deployment of resources that create lasting competitive advantage for the company. This chapter will illustrate the importance and interconnection of strategic innovation, research and development, and new product development efforts with clear operations strategy. It will also highlight some of the latest concepts, tools, and strategies in research and...