CIMdata PLM Industry Summary Online Archive
8 March 2005
Company News
Over-Emphasis on Technology Innovation and R&D Is Insufficient to Create Wealth Say Authors of "Value Innovation: Passport to Wealth Creation"
"Although most managers will agree that innovation can be the passport to wealth creation, many of their actual business practices and behaviors fail to support the activities crucial to value to value innovation. Many companies over-emphasize technology innovation and R&D which, in isolation, is insufficient to create new wealth."
The authors of a two year Industrial Research Study report on these and other conclusions in their article "Value Innovation: Passport to Wealth Creation" in the March-April issue of Research-Technology Management.
The article is co-authored by SmartOrg President and CEO, David Matheson with SAIC Senior Group Vice President, Tom Dillon, and Dick Lee, President and CEO of Value Innovations Inc. They describe a "Value IQ Instrument" that helps executives assess their companies' ability and capacity to create value through innovation and contrast Conventional Organizations with Value-Innovation Organizations. By understanding gaps between their current organization and the Value-Innovation Organization, management can take steps to narrow the gaps and improve the value returned to their organization from their investments in innovation.
Says Matheson, "My colleagues and I have developed a framework for tapping into the hidden potential in virtually every organization. The key is simply focusing on the measurement and management of value."
SmartOrg Value-Based Management Systems help companies drive growth and profitability by focusing on key value drivers that affect the success of new projects and products. Their software rapidly screens early stage opportunities and monitors project and portfolio value throughout the development process.
To download a copy of "Value Innovation: Passport to Wealth Creation" visit http://www.smartorg.com .
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