The transistor, integrated circuit, internet, and personal computer - all innovations that have fueled our economic growth in the 20th century. These innovative products significantly increased our productivity and consequently our standard of living. In the 21st century, innovation will be the single most important determinant of American Competitiveness.
What is innovation? Innovation is the discovery, development and commercialization of a new idea that delivers value to society. There are several kinds of innovation such as product, service, process, or organizational. Innovation can also be incremental, radical, or revolutionary. Innovation generally results in increased productivity and is imperative to sustain and increase our current standard of living.
CEO's from Fortune 500 companies agree:
"Regardless of your business, we all operate in a world today that demands differentiation, and there's little question that innovation is a critical driver in a competitive global marketplace."
- Robert W. Lane, Chairman & CEO, Deere & Company
"We fight our battles not on the low road to commoditization, but on the high road to innovation."
- Howard Stringer, Chairman & CEO, Sony
There is much value from Innovation. The majority of a companies revenue and profits come from new products.
Even though many companies see the benefits of innovation, companies have struggled to implement an efficient process for innovation due to several obstacles.
Many of the obstacles can not be solved with only process and technology improvements. Although, it is also imperative to have a digital infrastructure to support your innovation processes. Technology can support your innovation process with virtual design (CAD) and prototyping (CAE), data management, visualization, and collaboration. You will also be able to develop better products by driving design based on engineering calculations.
Thus, the third mission of The Innovation Machine:
3) Develop an Innovation Infrastructure to support the innovation process.