Seeking to learn about how companies are approaching innovation today, UL (Underwriter Laboratories) recently conducted a study among C-level executives and high-level professionals regarding their challenges, capabilities and insights. Based on those responses, UL developed the following top five trends in innovation.
Emerging from the study was the universal view that, with a combination of technology, consumer demands and threats of disruption accelerating the pace of innovation in business, companies are re-evaluating how innovation is done.
- Customers drive innovation far more than channel partners.
Although 45% of respondents indicated that customer expectations were a “highly impactful driver” of innovation, only 12% said that channel expectations and only 8% said that supply
chain volatility were highly impactful drivers of innovation.
- New technologies will force an overhaul of innovation.
Respondents indicated that technologies are likely to require major changes in companies’ approach to innovation. In fact, 66% believed that artificial intelligence and machine learning would “have a major impact” or “require a complete overhaul” of innovation approaches. Similarly, 60% believed that Internet of Things (IoT) technologies would do the same.
- Forceful societal changes are requiring companies to develop custom products.
Instant access to information has raised consumers’ expectations and demands for more personalised, innovative products with all manner of sustainability, performance and personalisation criteria, forcing companies to truncate the new product development process and innovate on all aspects of a product, from environmental attributes to packaging, to delivery methods and beyond.
Using Agile methodologies, High Accelerated Stress Test (HAST) or similar techniques, 52% of respondents have seen a 25% or more compression in product lifecycles.
- Innovation is more than just new products and features.
Consumer demands are driving manufacturer innovation beyond new product features. Respondents indicated that the following are some of the considerations that are top-of-mind with consumers and pressing manufacturers to develop fresh approaches to innovation:
- 62% demand higher degree of product customisation;
- 60% demand data privacy protection; and
- 34% demand movement toward a sharing economy.
- Compressed timeframes put pressure on innovation.
In an open-ended response question, “How do new technologies specifically impact innovation?”, the number-one response is that they will enable faster time to market and faster innovation. While innovation looks forward to ever-increasing speed of innovation, the safety side of the coin is concerned about being able to ensure the safety of products as well as regulatory compliance within the expedited product development phases.