2012 apac portfolio management and open collaboration

1

The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.

growth team m e m b e r s h i p™

Co-Sponsor

Portfolio Management and Open Collaboration

asia pacific

2012 r&d/innovation and product development priorities survey results

TWEET ABOUT THE SURVEYS

#2012priorities

2


2012 survey resultsgrowth team m e m b e r s h i p™

CONTENTS

INTRO

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . 5

R&D/Innovation and Product Development Overarching Challenges . . . . . . . . . . 6

Key R&D/Innovation and Product Development Challenges . . . . . . . . . . . . . . . 7SECTION

1

Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19SECTION

4

R&D/Innovation and Product Development Resource Trends . . . . . . . . . . . . . . 10SECTION

2

Special Interest Topic: Open Innovation . . . . . . . . . . . . . . . . . . . . . . . . . 15SECTION

3

3



Growth Team Membership™ research.

Introduction

R&D/Innovation and Product Development Executive Summary

SECTION 1: Key R&D/Innovation and Product Development Challenges

Key Internal Challenge Key Internal Challenge Root CauseGenerating an accurate and relevant technology roadmap Insufficient personnel

SECTION 2: R&D/Innovation and Product Development Resource Trends

Budgets Resources Portfolio AllocationR&D typically has an annual budget below $500,000 ($USD)

Budgets and staffing levels are expected to increase

More resources are being allocated to short- and medium-term innovation projects

SECTION 3: Open Innovation (OI)

OI Team Key OI Challenge External OI Sources Majority of companies have some form of OI team

Creating an open innovation collaboration framework

Customers are the primary source of OI ideas

4




Introduction

Survey Purpose and Respondents

Co-SponsorSurvey PopulationMethodologyResearch Objective

To understand the most pressing challenges shaping R&D/innovation and product development executives’ 2012 planning

Web-based survey platform Manager-level and above R&D/innovation and product development executives from companies throughout Asia Pacific

67survey

respondents

5




Introduction

What is the Growth Team Membership™?

GTM is a subscription program that supports executives within the functions that report to the CEO

GTM provides best practices, events, and services that enable executives to address challenges within their companies

CorporateStrategy

Corporate Development

Marketing

CompetitiveIntelligence

MarketResearch

SalesLeadership

R&D/Innovation

Investors/Finance

CEO

R&D/Innovation

CEO’s Growth Team™ GTM: Creating Client Value

GTM’s case-based best practices help executives:

Speed the design and implementation of initiatives by not reinventing the wheel

Save money and reduce risk by avoiding mistakes made by other companies

Accelerate problem-solving with a cross-industry perspective

Improve their functions’ and companies’ performance and productivity

[email protected] www.gtm.frost.com slideshare.net/FrostandSullivantwitter.com/Frost_GTM

mailto:GTMresearch%40frost.com?subject=

http://www.gtm.frost.com

http://www.slideshare.net/FrostandSullivan

https://twitter.com/#!/Frost_GTM

6




Introduction

R&D/Innovation and Product Development Overarching Challenges Sample Solutions from GTM

What’s Keeping R&D/Innovation and Product Development Executives Up at Night in 2012?

Contact us at GTMResearch@frost .com .

Portfolio ManagementR&D/innovation executives need to develop a methodology that allows them to prioritize innovation projects based on their economic value and role in the portfolio .

Learn how ConvaTec developed a portfolio management process that makes efficient use of cross-functional governing teams and phase reviews .

Open InnovationAs open innovation continues to gain momentum, R&D executives need to establish a process for identifying, screening, and nurturing emerging technologies .

Learn how Amway Corp . establishes an Open Innovation (OI) team to draw on ideas and technologies outside of the company and increase its capacity for systematically identifying and developing breakthrough innovations .

Open Innovation and Partnerships

As R&D executives apply open innovation to their product development processes, they often struggle to evaluate and establish trust with strategic partners .

Learn how our Strategic Partnerships toolkit helps you screen and evaluate potential partners based on their degree of strategic alignment and willingness to collaborate .

mailto:GTMResearch%40frost.com?subject=

http://www.frost.com/prod/servlet/cpo/248798731



7




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

1 Key R&D/Innovation and Product Development Challenges

8




Section 1

Challenge 1 Generating an accurate and relevant technology roadmap (29%)

Challenge 2 Prioritizing innovation ideas and projects (14%)

Challenge 3 Integrating input from partners in Sales, Marketing, etc . (17%)

Challenge 4 Allocating portfolio spend across short-, medium-, and long- term projects (15%)

Challenge 5 Embedding the voice of the customer into the innovation process (15%)

Top Five R&D/Innovation and Product Development Challenges

SURVEY QUESTION: What are the top five functional challenges shaping your R&D/innovation and product development strategy?

Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.

9




Section 1

R&D executives’ challenges are mostly attributed to staff and process limitations

SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five R&D/innovation and product development challenges .

Root Cause of Top Five R&D/Innovation and Product Development Challenges

Top Five R&D/Innovation and Product Development Challenges

Challenge 1 Generating an accurate and relevant technology roadmap Staff: Limited resources (33%)

Challenge 2 Prioritizing innovation ideas and projects Process: Ineffective process (33%)

Challenge 3 Integrating input from partners in Sales, Marketing, etc . Staff: Limited resources (100%)

Challenge 4 Allocating portfolio spend across short-, medium-, and long- term projects

Strategic Alignment: Lack of common objectives (33%)

Challenge 5 Embedding the voice of the customer into the innovation process Process: Inadequate communication (60%)

10




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

2 R&D/Innovation and Product Development Resource Trends

11




Section 2

R&D budgets are typically under $500,000 ($USD)

2012 R&D/Innovation and Product Development Budgets

SURVEY QUESTION: Which of the above ranges (in $USD) best describes your 2012 total R&D/innovation and product development budget (all expenditures on R&D/innovation and product development activities and general & administrative—including staff)?

0%

10%

20%

30%

40%

33%

12%

15%

3%5%

12%

20%

$500,000 to $999,999

Below $500,000 $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

percentage of company revenue allocated to r&d

Companies dedicated approximately 5% of their 2011 revenue to their 2012 R&D/innovation and product development budgets.

12




Section 2

Budget allocations are on the rise for short- and medium-term projects

Change in Portfolio Allocations

SURVEY QUESTION: In comparison to 2011, your 2012 R&D/innovation and product development budget for each of the above project categories will…

68%

25%

7%

INCREASE

STAY THE SAME

DECREASE

59%

34%

7%

35%

47%

18%

18%

55%

17%

Short-Term, Incremental Innovation

(adoption within 2 years)

Medium-Term Innovation (adoption in 2 to 4 years)

Long-Term Innovation(adoption in 4 to 10+ years)

Disruptive Technologies

13




Section 2

R&D executives foresee additional resources in 2012

R&D/Innovation and Product Development Staffing and Budget Changes

SURVEY QUESTION: In comparison to 2011, your 2012 R&D/innovation and product development staffing and budget will…

41%

49%

Stay the Same

Increase Substantially

Increase Moderately

Staffing Budget

Increase Substantially

10%15%

33%

50%

2%

Stay the Same

Decrease Moderately

Increase Moderately

14




Section 2

Most R&D executives rank their functions’ effectiveness “Above Average”

R&D/Innovation and Product Development Effectiveness

SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?

10%

49%

41%

Above Average

Exceptional

Average

15




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3SECTION

3 Special Interest Topic: Open Innovation

16




Section 3

The majority of companies employ a dedicated open innovation (OI) team

OI Teams Within R&D

SURVEY QUESTION: Do you have staff dedicated to open innovation? If so which of the above describes your open innovation team structure?

Yes72%

SURVEY QUESTION: Approximately how many people in your company are assigned to open innovation?

number of oi staffThe majority of companies that employ open innovation have 10 dedicated OI staff members. This number is based on the median value for this question.

OI Team Structure

Sub-group within R&D/product development (20%)

17




Section 3

Respondents are focused on challenges associated with establishing an OI process

Top Five Open Innovation Challenges

SURVEY QUESTION: Rank the above open innovation challenges in order of importance .

Overcoming the fear of lost IP and competitive advantage (21%)

Developing a process to assess innovation concepts’ feasibility (20%)

Garnering the internal resources needed to test innovation concepts’ feasibility (18%)

Establishing buy-in internally for open innovation (15%)

Creating an effective open innovation collaboration framework (33%)

18




Section 3

Adjacent businesses (30%)

Open innovation is used predominantly for idea generation and concept testing

Use OI in the Product Development Cycle

SURVEY QUESTION: During which stage(s) of the product development process does your company use open innovation (check all that apply)?

33% 24% 30% 11%

Idea generation Idea screening Concept testing and development Product launch

SURVEY QUESTION: Please rank your top three sources of open innovation ideas .

Top Three OI Sources

Customers (33%)

Suppliers (19%)

Academia (19%)

19




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

4 Respondent Demographics

20




Section 4

Respondent Demographics

SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue ($USD) that best represents your company .

N = 66

N = 66N = 65

Enterprise Type Business Model

Company Revenue

43%

3% 5%9%

2%

38%

20%

20% 60%

Public

Private

Hybrid

B-to-B Company

Venture Capital

Government/Public Sector

Not for Profit

0%

25%

50%

30% 31%

5%

17% 17%

Below $100 Million



$1 Billion to $11 Billion

More than $11 Billion

B-to-C Company (Indirect)

B-to-C Company (Direct)

The majority of respondents come from B-to-B companies .

Most of the respondents work in privately held companies .

21




Section 4

Electronics and Security

Government/Public Sector

SURVEY QUESTION: Please indicate which region you are located in and which industry categories best describe your company (check all that apply) .

Respondent Demographics: Top Five Participating Industries

N = 66

0% 20% 40%

29%

21%

21%

20%

20%

Automotive and Transportation

Healthcare and Life Sciences

Information and Communication Technologies

2012 apac portfolio management and open collaboration

Business

team key

companiesceos growth

key rdinnovation

survey resultsintroduction5

r d innovation

frost sullivan

executives gtm

open collaboration