Getting it right! (Toops Scoops).

An innovation survey of both multinational and national manufacturers and supplier partners in the U.K., Germany, Austria, Scandinavia and Benelux conducted by U.K.-based-Consumer Knowledge Centre found that multinationals and national companies have different approaches to new product development.

"Most multinationals utilize a system or process for the innovation cycle, describing it as a repeatable and measurable flow of events, where activities and check-points are predefined and used to proceed to the next stage of development," says Bryan Urbick, director of research.

"Multinational organizations prefer to apply classical project management to innovation," Urbick continues. "They apply their approach rigidly (75 percent) as compared to national organizations (10 percent)."

Eighty percent of multinationals said their organization has an employee or department with overall responsibility for innovation. Generally these workers are also responsible for managing the development of innovation systems and processes. Among nationals, 83 percent say that nobody has overall responsibility for driving innovations or developing and maintaining a systematic approach. Most respondents said this function is either applied on a case-by-case basis or that those employees or departments with the largest budgets and resource base rake on the role of decision making and project allocation.

National organizations generally rely on marketing managers and product or brand managers to lead innovation, the result of a desire to generate line extensions, operate within brand guidelines and develop new products of a tactical nature.

"Multinational organizations take a fundamentally different approach to driving innovation," says Urbick. "More than one-third of respondents have an innovations manager with a clear directive to manage the process as a whole, as well as the framework of individual projects. One-quarter utilize cross-functional innovation teams for new product innovations, and their innovation project work is their sole or main priority. Respondents described these teams as being free from traditional reporting lines for the duration of their project work."

Over the next five years, multinational management expects the pressure on generating higher returns to rise sharply. Projects that are not expected to generate international sales are less likely to be supported and developed. "Marketing sees the need to improve on the time taken to get products from the idea stage through development and onto retailers' shelves as the key challenge," says Urbick.

After analyzing comparative data by segment, country and company structure, Consumer Knowledge Centre concluded that there's a right and a wrong approach to innovation.

Begin with great ideas with a unique selling point; good resources and competence; loop innovations to target consumers; strategic direction and management commitment; teaming and leadership. Use a systematic approach; communicate the benefits of innovation; focus on the most promising ideas and projects; consider value for money, and speed and timing.

Contact info@consumer-knowledge.com.

Diane Toops

E-mail: dtoops@putman.net