The Product Innovation Agenda Benchmark Report

AberdeenGroup
The Product Innovation Agenda
Benchmark Report
Product Innovation, Product Development,
and Engineering Improvement for Profitable Growth
September 2005
Sponsored byThe Product Innovation Agenda Benchmark Report

Executive Summary

esigners dream of developing the coolest new device. Engineers dream about
solving a challenging problem in a novel way. Marketers dream about creating D the hottest new product trend. Everyone in the product development process
dreams about making an innovative contribution. Some may even dream about develop-
ing products that make a significant social contribution to the world. Executives and
shareholders dream about many things as well, but must be primarily concerned with
growth, profitability, and the generation of corporate value. Business leaders care about
the bottom line.
Key Business Value Findings
AberdeenGroup surveyed and interviewed more than 125 companies across the globe to
better understand corporate objectives for product portfolios, challenges they face in de-
veloping profitable products, actions to reach strategic product goals, and technical en-
ablers that help companies improve product innovation. Aberdeen found that 82% of
corporate strategies place a high level of emphasis on growing product revenue, while
93% maintain at least some strategic emphasis on reducing product cost, indicating that
manufacturers are striving for profitable growth.
As they’re trying to increase profits, ...