Survey Shows Innovation Budgets Increasing in 2015

Organizations are Fearlessly Reaching Outside their Networks to Develop Groundbreaking Products

02 Dec, 2014, 10:41 ET from NineSigma

CLEVELAND, Dec. 2, 2014 /PRNewswire/ -- Newly released data from a recent national survey shows companies are fearlessly leveraging Open Innovation (OI) to develop groundbreaking products, accelerate business results and lead their industries.

This means organizations are achieving innovation goals by drawing from resources and solutions outside their own walls, while reducing risks through proven OI methodologies.

The survey was conducted online in September and October by Harris Poll on behalf of global innovation leader NineSigma, and tapped over 300 executives at organizations with $1 billion or more in revenues. Findings underscore the power of open innovation and its rising adoption:

  • Eighty percent of corporate executives expect their company to increase its budget for innovation programs in 2015.
  • Seventy-nine percent say their company effectively leverages innovations from other industries.
  • Seventy-one percent expect their company's investment in projects with outside innovation firms to rise in 2015.
  • Sixty-eight percent of corporate executives say their company is using prize-based competitions to innovate their products and services.
  • Eighty-seven percent of corporate executives say their company has the resources and capabilities to leverage innovations from external partners.

Andy Zynga, CEO of NineSigma said, "These results show open innovation has taken flight. Fearless innovation is now mission-critical. Companies are strategically putting their challenges on the table for the world to solve, and shifting to a more open culture. Those successful with this strategy know the process requires training and long-term vision and is well worth it in terms of ongoing ROI."

"Mondelez is a $35 billion snack food business created to capitalize on potential for growth with iconic brands like Oreo, Trident, Cadbury and Milka. We will continue to invest in open innovation to sustain our momentum in these and other areas. Being open about our needs helps us speed our innovation process, and demonstrates our commitment to better meeting our customers' needs. We consider innovation a key strategy for maintaining a competitive advantage," said Todd Abraham, Ph.D., Senior Vice President, Research and Nutrition, Mondelēz International.

NineSigma is a pioneer in open innovation, which empowers organizations to reach beyond their networks to the worldwide community of innovators, tapping solutions and technologies that can be integrated into internal R&D, marketing, and business development processes. The company's OI platform, NineSights.com, provides

a variety of paths for organizations to connect with scientific and technical experts. From RFPs to Innovation Contests, Grand Challenges with multi-million dollar prizes, and Managed Innovation Galleries – organizations like GE, NCAA, Mondelez International, Samsung Display, Mattel and Siemens are continually advancing and showcasing their innovation efforts.

Seventy-one percent of company executives expect their company's investments in projects with innovation firms to increase in 2015. "I'm amazed at the breadth of technologies, concepts and ideas that come from tapping into a global innovation network," said William Schalitz, Vice President, Research and Development, Spartan Chemical Company, Inc. "I don't know any other way to access even a fraction of this type of information in such a condensed timeframe. Our industry is under continual pressure to develop new products, and open innovation helps us accelerate this process. We're about to launch a groundbreaking new product line because we have embraced OI."

Survey Methodology

The survey was conducted online within the United States by Harris Poll from September 25-October 13, 2014, among 305 executives at organizations with revenue of $1 billion or more. No estimates of theoretical sampling error can be calculated. For complete methodology, including weighting variables, and further information about NineSigma, please contact Dawn Ringel, Warner Communications at dawn@warnerpr.com.

About NineSigma

NineSigma connects organizations with external innovation resources to accelerate innovation in private, public and social sectors. The company provides open innovation services to organizations worldwide, including GE, Siemens, Roche, Under Armour and Johnson Controls, to solve immediate challenges, integrate new knowledge, fill product pipelines, and stay ahead of the competition. Named to the 2014 Inc. 5000 list of fastest-growing private U.S. companies, NineSigma's proprietary process has produced billions of dollars in value for its clients. NineSigma has the largest open global network of solution providers and an extensive database of existing solutions spanning numerous industries and technical disciplines. NineSigma's online innovation community, NineSights®, connects innovators of all sizes with resources and relationships to drive growth. Learn more at www.ninesigma.com.

CONTACT: Dawn Ringel, Warner Communications, dawn@warnerpr.com, (781) 449-8456

SOURCE NineSigma



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