Traditional R&D model is 'broken' while innovation centres grow

Businesses are frequently turning away from the traditional R&D model in favour of launching innovation centres, with R&D teams not viewed as adequate for the job, according to Capgemini-sponsored research.

Three such innovation centres could be set up in technology hubs such as Silicon Valley, says the report by research firm Altimeter Group's Brian Solis and Capgemini Consulting where companies can make use of the surrounding ecosystem of startups, VCs and accelerators.

Of the 200 companies surveyed, 38 per cent have already created innovation centres, with research into Big Data (51 per cent) and mobility (63 per cent) proving most popular, though virtual reality (13 per cent) and robotics (13 per cent) were far less common topics.

Brian Solis, principle analyst at Altimeter Group, said: "For the world's largest organisations, innovation has never been more important or more difficult. We find ourselves in a world where disruption is imminent and can come from anywhere and these digital-savvy competitors are threatening the very fabric of many established industries.

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"Without constant innovation, once-dominant players are finding their tried and trusted paths to innovation are now dead ends. It's time to innovate or die."

The respondents come from sectors including the automotive, financial services, retail and telecoms industries, and the innovation centres ranged from in-house labs and university residences to community anchor centres and innovation outposts.

"The advent of thriving technology hubs, and the appetite of new digital entrants to relentlessly disrupt and innovate, has created an innovation ecosystem that traditional organisations can tap into," said Fernando Alvarez, global chief digital officer at Capgemini Consulting.

"By combining the culture and approach of innovation centres with the budget fire power and access to customers that they enjoy, traditional organisations have an excellent opportunity to innovate and re-energise their capabilities."