Three good reasons why smaller manufacturers should innovate (and IMEC should help them).
Before I share my three reasons let’s define innovation and give a couple statistics from the Next Generation Manufacturing Study. Here’s the study’s definition of innovation: Develop, make, and market new products and services that meet customers’ needs at a pace faster than the competition. According to the 2011 study, 57% of small to mid-sized manufacturers rated the importance of innovation as highly important for their success over the next five years. Of those same manufacturers, only 12% felt they were world-class (where they needed to be) when it comes to innovation. Clearly, manufacturers know they need to innovate, but many of them seem unsure of the best way to do it.
Now for my three reasons:
1. Manufacturers won’t grow without it. The evidence is clear. The marketplace is changing at an increasing rate. We heard a good example of this at our staff meeting presentation from a Caterpillar representative. Ten to fifteen years ago, cost and quality was the key driver in Caterpillar’s assessment of the performance of a supplier. Those factors are still critical to be sure. But going forward, a supplier’s ability to collaborate on new product designs, support rapid new product introduction schedules, and continuously improve processes to meet worldwide demand will separate the strategic suppliers, from the commodity players.
2. Manufacturers won’t survive without it. Like it or not, the evidence is clear for this as well. Manufacturers who do not become continuous innovative organizations do not have a chance to survive in the near future’s marketplace.
3. Smaller manufacturers can get ahead of the competition by innovating now. Rather than waiting until it becomes necessary, take advantage of marketplace opportunities and gain a leg up on the competition.
IMEC is committed to finding ways to help Illinois manufacturers innovate. We all recognize that this is not easy and one size may not fit all. However, IMEC already has many resources geared towards manufacturers looking for fresh ways to innovate. From programs that can guide a company step by step through the development of a new product to finding innovative ways to save on costs and become more “green,” IMEC and our partners already have a variety of solutions.
I’m in the process of more fully developing the IMEC way of systematically helping our manufacturers become what we are calling “Continuous Growth (Innovative) Organizations”. I’m certain that as the development continues, IMEC will have a program that goes beyond even our current offerings and meets the needs of manufacturers more fully.
If you’re looking for innovative solutions or just wanting to instill a philosophy of innovation into your company, we can sit down with you and develop a personalized plan to meet you company’s needs.
