Technology companies have a lot riding on how they prioritize markets, structure their innovation and product development processes, allocate R&D spending, and design their operating models. Whether they make enterprise software, semiconductors, or Software-as-a-Service applications, they depend on product innovation and engineering to meet their strategic objectives, navigate increasing complexity in technology and customer expectations, and stay ahead of the competition.
At a time when innovation and disruption happen so fast, getting product development right is a must. When product development is in sync with a company’s overall strategy, it can reduce R&D costs, drive products’ market fit, and speed new products to market. It can also improve customer satisfaction and help employees feel more engaged.
But getting there is not without its challenges. Problems with product innovation and engineering can crop up if companies don’t have a clear vision or business plan, don’t allocate R&D spending correctly, or mismanage product development. The costs—including missed opportunities for growth and a weakened competitive position—can be high.
BCG’s Approach to Product Innovation and Engineering
Our comprehensive method for improving R&D includes enhancing product and portfolio strategy, R&D spending, product management, technology and tooling, and the function’s organization and operating model.