ISSN:
1087-8572
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Economics
Notes:
Purpose - Over the last two years, the authors have studied the growth strategies and the supporting operations of nearly 650 companies around the world. While most have the expectation that innovation will drive corporate fortunes, the research makes it clear that building or restructuring business operations to profitably bring new products and services to market is a top priority only for best performing companies but near the bottom of most companies' priorities. Design/methodology/approach - Explains how top-performing global companies are investing in the product development capabilities, the supply chain process infrastructure, and the sophisticated information systems needed to support and synchronize innovation across the value chain. Findings - Research on a subset of the survey base (the 300+ larger companies and business units with revenues ranging from US$200 million to US$10 billion and higher) shows that those that can synchronize complex global value chains - the complexity masters - are up to 73 percent more profitable than the others. Research limitations/implications - Interviews with senior managers at leading firms and case studies on the complexity masters would be of high value. Practical implications - The authors suggest three steps: create innovation - build an idea-generation machine; exploit innovation where and when it matters; and invest in innovation capabilities for creating and sustaining a profit cycle. The four ingredients that make top-performing companies stand out are visibility, flexibility, collaboration, and technology. Originality/value - Lists the best practices - the strategies and tactics - of the most profitable innovators, the elite "complexity masters."
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/10878570510608013
