Increasing the return on innovation
Many CEOs regard new products as the engine for their business strategy, believes Oracle. “It’s a case of innovate or die. Lots of organisations struggle with that,” Jon Chorley told Supply Chain Movement during the Oracle Value Chain Summit on 18 March 2014. The software supplier recently launched Oracle Innovation Management, an application aimed at helping companies to increase their financial return on innovation.
“Organisations need to reconceptualise; in other words, they need to transform the way they do business and launch new products. That’s what most of my conversations with customers are about nowadays,” said Chorley. However, that does not mean that companies should suddenly ignore efficiency: “If you’re expanding in one area, you’ll have to reduce in another.” The software supplier believes that product innovation should be regarded as a key business process, and it is one that the new Oracle Innovation Management solution supports. “Product innovation is too critical a business process to be left to spreadsheets and PowerPoints, and to remain disconnected from the rest of the product value chain,” continued Chorley. The application, which is a new addition to the suite of Oracle Value Chain solutions, is a systematic approach to identifying, selecting and investing in the best ideas and for managing the entire product portfolio.
Companies can fill their innovation pipeline with a steady stream of high-value ideas that can be translated into profitable offerings. They can analyse the impact of various investment scenarios based on business objectives such as costs, profit and constraints to determine the best opportunities to commercialise. Furthermore, they can increase productivity and reduce product development costs through a strategic focus on fewer, better products that are aligned with the business growth strategies.