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by David R. Brousell, MA Editorial Staff   | Abstract: | Years of cost cutting and lean efforts have yielded some substantial rewards for manufacturers. Now, many are realizing that their trimming efforts have kept the focus off development. To that end, manufacturers are now wrestling with how to innovate in the areas of product design; production; service and support; and sourcing and procurement. |
The word "innovation" has become one of the hottest buzzwords in business today. There are a number of reasons for this. First and foremost is the realization among manufacturing business leaders that innovation is the key to both growth and competitiveness. A number of studies and surveys have borne out the assertion that manufacturers have shifted from a concentration on cost cutting to an emphasis on growth in new product development and penetration of new markets. MA reader studies, to cite one research example, have charted this shift over the past few years. This doesn't mean that manufacturers are done with cost cutting. Quite the contrary. Continual cost reduction is and will remain a constant business practice. But what it does mean is that manufacturers are keenly aware that they can't cut their way to success. They know they must find new ways to grow the business. Today, the emphasis is on innovation -- breakthrough ideas in what products to make, how to make them, and how to get them to market. [Click to continue] |