Today innovation is necessary to survive. The global market has become so competitive that innovation is now as valuable an investment as sales and marketing. Markets are becoming more global, not less, so the value of innovation will continue to increase. Here's why:
Overseas companies have huge advantages over U.S. firms including lower labor costs and government subsidies. U.S. companies can't compete on price -- they must compete on the value that they bring to customers. To do that they must be consistently more innovative than overseas competitors.
The best ideas and technologies spread rapidly around the world now. A company with a new product may make a one-time splash, but before long everyone else will have adopted it. A consistent, predictable innovation process enables companies to overcome this.
Brands aren't as powerful as they used to be. Experience is now more important than brand name as the basis for a person's purchasing decision.The Internet allows people to share experiences about a company with millions of others. People now choose the products that give them the highest value, not just the best-known brands. Relying on a strong brand name is no longer enough. Consistent, predictable innovation is the answer.
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