"Mastering the Innovation Paradox" is the most recent installment of Deloitte's Global Manufacturing Supply Chain Benchmarking research. The latest findings, based on research gathered from nearly 650 leading manufacturers worldwide, reveal that:

• Manufacturers cite launching new products and services as the No. 1 driver of revenue growth, yet also view supporting product innovation as one of the least important priorities
• 50 to 70 percent of all new product introductions fail
• New product revenue will jump to 35 percent in 2006, up from just 21 percent in 1998
• By 2010, products representing more than 70 percent of today’s sales will be obsolete due to changing customer demands and competitive offerings

The findings conclude that many manufacturers are unable to profitably bring new products and services to market. This paradox is the result of several key reasons, including:

• Insufficient information on customer needs
• Supplier capabilities
• A reluctance to allocate additional spending on R&D
• A disjointed approach to innovation across product, customer and supply chain operations

"Mastering the Innovation Paradox" reveals best practices for driving profitable growth through effective new product lifecycle management. The small percentage of manufacturers that have achieved success excel in three areas, including mastering innovation, exploiting innovation, and building innovation capabilities.

View the rest of the Global Manufacturing Supply Chain Benchmarking Series