Using Challenge Driven Innovation to Optimise New Product Development

600 WordsApr 23, 20193 Pages
Using Challenge Driven Innovation to Optimise New Product Development The era of ‘know it all’ management in creating solutions to problems affecting different sectors of the economy is long gone. Most innovative firms are turning to challenge driven innovation to churn out new technologies to the market. These sectors range from the energy, agriculture, reduction of carbon gas emissions to Information Technology among others. Firms have realised that there is a better pool of innovative ideas out there that is cheaper, effective and workable than internal product development procedures. In fact, the internal process may take so long and involve many product and market tests. Unfortunately, a significant number of these ideas fail to solve…show more content…
Furthermore, the company must be willing to take the cost and encourage employees to take risk. 2. Mergers and takeovers Big firms may encourage smaller firms to come up with innovate solutions. In this case, they may allow small firms and start up to use their software, devices or other applications to come up with new ideas. These ideas can then be absorbed into the firm. Several start up have made a fortune by selling innovative solutions to bigger and better financed firms. 3. Joint ventures and consortiums Two firms may come together with the sole aim of developing a solution. In this case, they bring their synergies together to achieve the goal. This speeds up product development and makes the venture less expensive. Where the cost of product development is very high, a joint venture would reduce the risk and cost. 4. Contracted engagements Some ideas and problems need specialised knowledge and equipment. The best way around it is hiring specialised work force to unravel the challenge. A firm could hire another to do a research or set up a special unit for research purposes. This is very common in technology, medical and chemical industries. 5. Collaborations with universities Universities are having a large pool of talent that firms could utilise cheaply. Challenges may be thrown at specific departments to come up with ideas and solutions. Winning solutions are then awarded and absorbed. Universities are a major source of innovative

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