Contradictory enterprise innovation.doc

 PAGE \* MERGEFORMAT 13 Contradictory enterprise innovation Author: Johann-Peter Friedmann Steve Maurer [America] According to AT Kearney survey, since most companies consider themselves above average in innovation, then these companies should all be ahead of the whole average. Clearly this is impossible, the problem lie? Perhaps companies should adopt a more accurate self-assessment program. Many people believe that innovation is the creation of new products and new services, we believe that the creation of new value is also an innovation. In order to gain a significant competitive advantage, companies need to be market-oriented new products, new services and new products in the manufacture and sales of new breakthroughs. The company faces an arduous task: innovation inherently difficult to manage and measure, to be effective it takes a lot of effort. The effective management of product and process innovation included in the decision-makers work schedule for many reasons. First of all, innovation-driven growth in the profits, if there is no innovation and product differentiation, the factors that affect the company’s competitiveness, only cost, but profits will not meet expectations. Secondly, innovation can reduce the total cost of the product life cycle. Studies have shown that forming the total cost of the product life-cycle, 70% -80% in the design stage determined. If the company can reduce complexity and ensure that expenditure is to meet customer requirements, you can use not only acceptable but also allow customers to obtain lucrative prices to provide customers with products needed. Moreover, compared with processes carried out in other incremental reforms, from the production process and marketing the benefits of service innovation to be much greater. Finally, innovation is the most important investment for future business areas. In the United States and Europe, an average of every company to use in product and process research and development exp