Having a R&D department and R&D spendings in place are not related to growth in sales, increases in market capitalisation or shareholder returns. Companies must align R&D with strategy and ensure they have a robust innovation management processes in place to bring the products to the market. The R&D process and the market success with the created technologies produces innovation success.
Within a technology company most of the time the focus is on solving the technical risks only. But this does not guarantee the success in the market. The focus should shift more to the market risks by having innovation frameworks and work processes in place and most important develop a deep understanding of customer needs. By knowing your customers and there needs you are able to develop products people really want. The creation of products people really need is the foundation for successful innovation.
Next to this you should develop good business model to realise and support the products when it’s ready for delivery to the customers. Doing this before the technical realisation gives you the possibility to rethink. Are customers still interested, having insight on the operational deployment, process and costs. Is the innovation sustainable profitable.
Having a innovative goal in mind, that fits the company strategy, you deeply know your customers needs, stakeholders are aligned, innovation management process in place, it’s sustainable profitable and you have the solution for technical realisation and the people, then you’re ready to go.