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.
This emphasis will produce many benefits for manufacturers able to both innovate and to get their innovations into the hands of buyers. Those that successfully harness the creative ideas and energy of the people in their companies will enjoy the benefit of being more competitive. And growth will attend these efforts.
But the challenge, and the focus of our special issue on innovation, is finding ways not only to unlock innovation but also to sustain it over time. Moreover, innovative ideas need to be applied liberally to the many functions and processes of a manufacturing company, not just product design and development. In this issue we look at how innovation is happening across the board -- in product development, on the factory floor, in sourcing and procurement, and even in service and support.
Is innovation just the unexpected idea from the unlikely source? Or is it the byproduct of the right philosophy and the right process? A little of both, we think. Along with a dose of luck and lots of hard work.
What's your view on how to stimulate innovation? Write to me at Dbrousell@thomaspublishing.com.