Creating and unlocking value in an organization starts with knowing precisely where things stand, and where the opportunities for improvement lie. To help, SAP’s Performance Benchmarking group publishes a short analysis each Monday, highlighting hot industry topics and high-impact strategies. This week’s analysis focuses on quantifying the impact of best practices in R&D, defined by success in the marketplace, and is written by Anurag Gupta.
KEY QUESTION: How much can R&D best practices improve performance?
KEY TAKEAWAY: Innovation is critical to success, but not all companies experience the same success rate. In fact, according to cross-industry analysis by SAP’s Performance Benchmarking group, best practice companies see, on average, 97 percent of new products meeting revenue targets, compared with 80 percent at average performing companies and 67 percent at underperformers.
How do companies improve? In our study, we investigated the correlation between success and best practices across all major product lifecycle management (PLM) sub-processes. Our analysis showed that idea management, requirements managements and market-launch best practices have a strong correlation with new product success. (See chart.) Of course, the impact of idea and requirements management will differ across industries; however, the data does suggest companies can benefit noticeably by taking a closer look at the way these sub-processes are run in their organization.
Visit SAP’s Value Management Center for Operational Excellence | Request More Information
Note to ASUGNews.com readers: SAP’s Performance Benchmarking program is a strategic service sponsored by its Value Engineering organization. Originally launched in 2004 together with ASUG as a forum to exchange metrics and best practices, the program today has grown into a global effort and one of the largest such programs in the industry—with more than 12,000 participants from more than 4,000 companies and studies available in 12 languages. Participants receive—free of charge—customized and confidential benchmarking comparisons against industry peers as well as aggregate analyses. To participate in the SAP benchmarking program, visit https://valuemanagement.sap.com.