This month we are running a series based on our independent research on innovation confidence. To learn more about disruptive innovation and other strategy approaches, visit the Newport Consulting Group website strategy page.
In the area of value chain and logistics, survey respondents across the board responded that they felt significantly more positively this year about their ability to proactively manage the value chain members in a constructive, respectful manner. Our interviews with executives suggest that issues plaguing company value chains in the area of intellectual property (IP) and its management in sourcing and delivery of innovative products appear to have declined.
Johnson Controls Automotive (JCI Automotive) is currently field testing an innovation system which takes into account key performance indicators (KPIs) across not only JCI internal core engineering and R&D processes, but also extending those metrics and performance expectations to its value chain.
Behr GmbH & Co. KG works proactively with its value chain members and its vast partner network to extend its “Behr Culture.” The heating and cooling systems integrator uses this tightly-coupled approach to logistics and value chain management, allowing for quick remediation of troubled suppliers, co-development of intellectual property, and greatly enhanced customer satisfaction.
Medical device and optics manufacturer CooperVision extends this consistency of information across its value chain and into its extended enterprise. Due to shifts in the organic development of its internal R&D and intellectual property, 50% of product ideation comes from its value chain.