Home Business NewsBusiness Business leaders don’t consider their own production line as the starting point to innovation

Business leaders don’t consider their own production line as the starting point to innovation

by LLB Reporter
18th Jul 17 9:38 am

New study finds

Happen, a leading innovation consultancy, has revealed that majority of C-suite leaders (86 per cent) believe production capabilities are often not considered when it comes to new product development and innovation for them.

Supporting the thought that perfectly good machines lie idle because businesses don’t have the capability to produce the company’s latest innovation, 81 per cent of business leaders stated they would spend more money on new production facilities going forward including machinery, technology and manufacturing.

As documented in the report, factory utilisation rates typically hover around 80 per cent, suggesting that the average company has plenty of room for improvement.  When asked what innovation skills will become more important in the future, only one in five (20 per cent) CEOs admitted to needing to understand production.

To support the whitepaper, in a study of 100 business leaders and C-suite employees, four out of five (82 per cent) CEOs claimed that innovation as a function lives within the marketing and sales teams, rather than production line. In light of this outcome, additional internal research found that 3.4 million of LinkedIn’s 467 million members include the word “innovation” in their profiles. Of those, more than two thirds also include the word “strategy”, “marketing” or “sales”. However, only around one in seven include the words “product”, “production” or “operations”.

Costas Papaikonomou, Founding Partner at Happen commented: “We’ve proved that there’s still a big education for businesses to learn when it comes to considering their own production line as part of their innovationprocess.  Clearly, innovation is viewed as a function that lives with marketing and sales, and not with the nuts-and-bolts production side of the business.Herein lies a problem. Whilst a creative process at heart, Asset-Out ensures less time is lost, less money wasted, and fewer ideas compromised on thejourney to create insightful, commercially sensible products that bond you with your consumers.”

 

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